[Click eStock] "Trump 2.0 Era... Global ESG Trend Will Continue"

Despite U.S. President Donald Trump's 'anti-ESG (Environmental, Social, and Governance) policies,' securities analysts have predicted that the global ESG trend will continue, especially in the global financial sector and Europe.

On the 5th, Kim Sang-man, a researcher at Hana Securities, stated, "While the ESG stance in the U.S. may retreat with Trump's re-election, the global climate change agenda itself will not be decisively undermined."

President Trump has shown strong anti-ESG actions since his first week in office. He revoked the ban on offshore oil and gas drilling, withdrew again from the Paris Climate Agreement, closed climate policy-related departments within the federal government, and halted subsidies based on the Inflation Reduction Act (IRA), canceling more than 70 climate and green energy-related policies.

Researcher Kim said, "During Trump's first term, ESG was not very active, nor were there many related policies and systems, but after the COVID-19 pandemic, societal interest in environmental and social issues noticeably increased. ESG-related systems and policies have expanded globally, and with the introduction of mandatory corporate and financial disclosures, green taxonomy, and green bond standards, many obstacles have emerged that Trump would need to address."

With the launch of Trump's second administration, concerns within the ESG camp have deepened. The energy crisis caused by the Ukraine situation has weakened the momentum for eco-friendly initiatives, and inflows into ESG funds have sharply declined. Major U.S. banks have also been withdrawing from the Net-Zero Banking Alliance, a global banking coalition for climate change response, over the past few weeks.

The trend of European capital offers hope to the ESG industry. Major European asset managers such as Amundi, UBS, and BNP Paribas have decided to remain in the institutional investor group Climate Action 100+, maintaining their ESG stance. Researcher Kim noted, "Since the emergence of ESG issues, Europe has continuously held the leadership role," adding, "Recently, ESG has begun to be recognized not just as a social movement but as a management tool, and it is undergoing its own evolution, including the emphasis on the concept of 'transition finance,' which supports high carbon-emitting industries and companies in effectively reducing carbon emissions."

However, Researcher Kim added, "In the future, ESG needs to move away from a black-and-white approach and be considered from the perspective of costs and benefits. Trump's anti-ESG stance may resonate with developing countries that have felt marginalized in previous ESG discussions, making selective adoption based on each party's position inevitable."

This content was produced with the assistance of AI translation services.