While the anti-ESG movement likely started the same day the ESG movement launched, recent proxy proposals and new legislation are forcing corporations and asset managers to pick between state and local client relationships and increasingly strict global ESG disclosure mandates. The sticky situation is likely to generate work for law firms and consultants, said ESG lawyers and consultants, but unlikely to sway the behavior of institutional investors.

Last week, Florida Gov. Ron DeSantis announced a plan to block Florida State Board of Administration (SBA) fund managers—who control about $250 billion between the state pension fund, hurricane catastrophe fund, and over 20 other funds—from “considering ESG factors when investing the state’s money.”