Between Integration and Denial: Navigating the ESG Flux in the United States.

Abstract

This comprehensive study delves into the sustainable financial environment in the United States of America, with a specific focus on the evolutionary journey of Environmental, Social and Governance (ESG) criteria, the ESG-related legislative and regulatory framework and the state of the art of the green financial sector in the country. The research engages in a valuation of the current ESG initiatives carried out by key U.S. regulatory bodies, juxtaposed with the European Union’s proposals, highlighting the key regulatory and strategic gaps. A consideration of the Inflation Reduction Act’s impacts on U.S. ESG goals, economy and financial sector follows soon after. Additionally, the study scrutinizes the complex ESG landscape at the state level and its variation based on political affiliation, highlighting the difficulties of asset managers in navigating in this environment. Green fund and ESG-focused M&A activity in the country are questioned to evidence their role in advocating a more transparent ESG approach. This interdisciplinary exploration offers a nuanced understanding of the complex regulatory ESG environment in the United States, providing valuable insights to better understand where the United States places when it comes to ESG integration and adaptation in the international landscape.