Anti-ESG backlash in the United States: “The American shockwave creates a historic window of opportunity for Europe”

With the gradual but substantial withdrawal of major US financial players from ESG (Environmental, Social, Governance) initiatives— – fuelled by an increasingly hostile political climate, particularly under the influence of the Republican Party and Donald Trump — the landscape of sustainable finance is undergoing a profound change. This trend is already reflected in concrete capital reallocations in favour of Europe: for instance, The People’s Pension in the UK allocated $25.2 billion to Amundi, while Denmark’s AkademikerPension has withdrawn $480 million from a US-based asset manager.

“In this new environment, Europe has a clear competitive advantage: of the 35 most active companies in shareholder engagement, 30 are European, and the French players are particularly well positioned.” – Arnaud Syoen.

However, some challenges remain: Competition between European financial centres and different interpretations of ESG regulations hinder the development of a unified offering. In addition, market fragmentation makes it difficult for European players to achieve the necessary scale to compete with the American giants in the long term — especially if these players return once the political landscape changes again.

According to Arnaud Syoen, a coordinated and proactive European strategy is essential to capitalise on this dynamic. He identifies three key levers: attracting American capital by adapting the ESG offering to US cultural and legal constraints, aligning European and North American ESG approaches, and developing a distinctive and measurable French offering, particularly in the area of low-carbon strategies. In his view, this American “shockwave” could enable France and Europe to take a leadership position in global responsible finance.

“For French players, this is a strategic issue. It is not a question of following the trend, but of anticipating it by positioning themselves as trusted partners for credible, technical and rigorous responsible finance.”

Read the full version of this opinion piece published in Les Echos on 17 June 2025 (available in French).