ESG Investment and the Backlash

B2/C1 video lesson on ESG, fiduciary duty, corporate sustainability and business controversy.

Lesson Overview

Students watch a Financial Times video about ESG investment and the political, financial and ethical backlash against it.

Before you watch

What does ESG mean in business and investing?
Should companies focus only on profit?
Can sustainability and shareholder returns work together?

ESG Investment Debate

Open video on YouTube

Prep Part 1

Drag the correct sentence ending into each gap.

1. If ESG is discussed,...

2. If there is a backlash,...

3. If critics mention woke capitalism,...

4. If a movement gathers steam,...

5. If a company has fiduciary duty,...

Sentence endings

there is a strong negative reaction.they are criticising companies for focusing on social or political issues.it becomes stronger or more intense.it must act in clients’ or shareholders’ financial interests.people are talking about environmental, social and governance issues.

Watch Part 1

Watch from the start to about 1:36. Focus on the anti-ESG backlash in US politics.

Watch Part 1 on YouTube

Comprehension 1

Click each question to reveal the answer.

What has happened to ESG investment in recent years?

It has taken the financial and corporate world by storm.

Where has the loudest criticism of ESG come from?

America

What did Tucker Carlson reportedly call ESG?

destructive force

What did Texas ban some government agencies from doing?

dealing with firms accused of boycotting gun and fossil fuel industries

Vocabulary from Part 1

ESG investment has taken the corporate world by .

An anti-ESG backlash has been gathering .

Some critics say ESG puts pressure on .

Companies may risk neglecting their fiduciary .

Options

dutystormmazegovernmentssteam

Prep Part 2

Drag the correct sentence ending into each gap.

1. If a company has fiduciary duty,...

2. If corporate action is voluntary,...

3. If a term falls out of use,...

4. If banks pull out of alliances,...

5. If sustainability challenges are urgent,...

Sentence endings

they need serious attention very soon.companies choose to act without being forced by law.they leave or withdraw from those alliances.people stop using it commonly.it has a responsibility to act in clients’ financial interests.

Watch Part 2

Watch from about 1:36 to the end. Focus on banks, BlackRock, Elon Musk and the future of the term ESG.

Watch Part 2 on YouTube

Comprehension 2

Click each question to reveal the answer.

What have some US banks warned they may do?

pull out of corporate alliances promising to cut carbon emissions

Who is Tariq Fancy?

the former head of sustainable investing at BlackRock

What is his criticism of voluntary corporate action?

It may exaggerate what companies can achieve and undermine stronger government measures.

What is the video’s final key point?

The challenges around sustainability in business will not disappear.

Vocabulary from Part 2

Some banks may pull out of corporate .

Critics say voluntary action can undermine serious government .

ESG has become an intense .

Sustainability challenges are becoming more .

Options

alliancesscrapbookmeasuresurgentcontroversy

Vocabulary Review

Word / phrase	Meaning	Example
take something by storm	become suddenly very popular or influential	ESG investment has taken finance by storm.
backlash	a strong negative reaction	There has been a backlash against ESG.
gather steam	become stronger or more intense	The movement has been gathering steam.
fiduciary duty	a responsibility to act in clients’ financial interests	Critics say companies must respect fiduciary duty.
pull out of	leave or withdraw from something	Some banks may pull out of climate alliances.
fall out of use	stop being commonly used	The term ESG may fall out of use.

Phrasal Verbs and Expressions

ESG has taken finance by .

The backlash is gathering .

Some banks may pull alliances.

Companies are cutting official business with some firms.

The term ESG could fall use.

Options

stormbacksteamout ofoffout of

B2/C1 Grammar: Reported Speech for Business Controversies

This section practises reporting criticism, claims and predictions in business news.

Direct speech: “ESG is a destructive force.” Reported speech:

He asked ESG is a destructive force. He said ESG will destructive force. He said that ESG was a destructive force.

Direct speech: “The term could fall out of use.” Reported speech:

Some people asked the term could fall out of use. Some people predicted that the term could fall out of use. Some people predicted the term falls yesterday.

Reported Speech in Context

The video said that ESG investment the corporate world by storm.

Critics argued that companies their fiduciary duty.

Some banks warned that they of corporate alliances.

The speaker said that sustainability challenges more urgent.

Options

will becomehad takenwere becomingmight pull outrisked neglecting

Useful Patterns

Direct speech	Reported speech
“Companies are focusing too heavily on ESG.”	Critics argued that companies were focusing too heavily on ESG.
“Banks may pull out.”	The report said that banks might pull out.
“The challenges will not disappear.”	The speaker said that the challenges would not disappear.

Task: Summarise the ESG debate using four reported-speech sentences: one from critics, one from banks, one from Tariq Fancy and one from the video narrator.

Thought-Provoking Questions

Should investment firms consider environmental and social issues?
Does ESG distract companies from maximising returns?
Can voluntary corporate action solve sustainability problems?
Why has ESG become politically controversial?
Should governments, not companies, lead climate policy?
Could the term ESG disappear while the issues remain?

Role Play

Situation: An investment company is deciding whether to keep using ESG language in its client communications.

Student A: ESG investment manager

Defend ESG. Explain why sustainability risks matter for long-term business performance.

Student B: Client / board member

Challenge ESG. Ask about fiduciary duty, returns, politics and whether the term should be dropped.

Useful language

Defending ESG	Questioning ESG
Long-term risks include... Our duty is to consider... Sustainability affects...	How does this maximise returns? Is this political? What evidence supports that?