Next ESG Controversy Has Potential to Redraw Financial Map (1)

ESG has become a lightning rod for high-ranking Republicans who say it poses a threat to American society. But beneath the hyperbole, a new global controversy around environmental, social and governance investing is quietly unfolding, with industry experts taking different sides.

At issue is the question of so-called double materiality. The concept means that an entity needs to consider not only the ESG risks it faces, but also the risks it poses to its environment and the society around it. The Global Reporting Initiative, which works closely with the International Sustainability Standards Board, wants to make sure that companies disclose ...