ANALYSIS: Antitrust Troubles Brewing for ESG

Several antitrust authorities have threatened enforcement against corporate ESG efforts, largely centered around allegations that working to reach standards or accepted practices to reduce the environmental or social impact of business, or improve corporate governance, amount to cartel activity.

The societal benefits of ESG initiatives can be in tension with their market impacts in the short run—that’s not a controversial statement. But whether market impacts are pro- or anti-competitive is a more complex question that must be answered case by case.

And so far, some states are voicing enforcement concerns while others are expanding disclosure regimes, which does bespeak ...