The Right, in its increasingly idiosyncratic crusade against “wokeness,” is now claiming that even capitalism has succumbed to the disease. According to Republican lawmakers, Fox News, and self-pronounced experts such as entrepreneur and long-shot Republican presidential candidate Vivek Ramaswamy, the emergence of “ESG funds” (short for environmental, social, and governance) poses the “single greatest threat” to capitalism and democracy. Elon Musk suspects a conspiracy “weaponized by phony social justice warriors” to bring harm and shame upon the impeccable world of free-market practices — and Tesla’s stock-market valuation.

Proponents of the increasingly prominent investment paradigm, on the other hand, claim that the growing popularity of ESG funds facilitates and encourages “socially responsible” investing. These in turn ought to enhance corporate social responsibility and lead the business world onto a more equitable and sustainable path, especially when it comes to the investments in renewable energy essential to mitigating the worst effects of climate change.

The fight over ESG funds is part of the broader battle being waged by the American right against bogeymen like critical race theory. Eager to embrace the latest outrage trend, Republicans and their right-wing allies have launched a full-fledged campaign against ESG investing — and it seems to be working. Last year, eighteen US states proposed or implemented legislation prohibiting the government and its associated financial vehicles from investing in ESG funds. Capital inflows into the sector have declined ever since.