Takeaways

• John Kerry says ESG investing in the U.S. has lost credibility and needs a rebrand.
• He urged the sustainable finance industry to focus on economic impact, jobs, growth, and income, rather than moral imperatives.
• Kerry suggested ESG should stand for “efficiency, security, and growth” to better highlight its financial relevance.

John Kerry, the former U.S. Secretary of State and climate envoy under President Joe Biden, has called for a major rethink of how environmental, social, and governance (ESG) investing is presented. Speaking at the Building Bridges conference in Geneva on Tuesday, Kerry said the approach in the United States has been discredited and must pivot from moral arguments to measurable economic outcomes.

“ESG probably ought to mean efficiency, security and growth,” Kerry said. He stressed that we should emphasize how climate change directly affects companies, economies, and long-term financial health rather than framing it as a moral duty.

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Kerry argued that the sustainable finance industry must prove its ability to deliver “better economic fundamentals” such as job creation, higher incomes, and overall economic growth. “The new paradigm has to be first economic. Jobs. Income. Make life better,” he told the audience of finance professionals, government officials, NGOs, and philanthropists.

The comments come amid growing criticism of ESG investing in the U.S., where political pushback and skepticism have fueled debates about its role in financial markets. Critics say ESG has become politicized, with investors divided over whether it serves social goals or genuine financial returns. Kerry’s remarks suggest that a shift in messaging, i.e., framing ESG as an economic driver rather than a moral compass, could help restore credibility.

Last year, Kerry joined Galvanize Climate Solutions, an energy transition-focused investment firm, as co-executive chair. His perspective aligns with the growing call from industry leaders to link sustainable investing directly to financial performance, showing that companies taking climate action are better prepared for risks and opportunities in the global economy.

Also Read: ESG Thematic Funds: A Comprehensive Guide for Sustainable Investing

At the Geneva event, which brought together stakeholders from across the financial and philanthropic sectors, Kerry highlighted that the success of sustainable finance depends on showing clear value to businesses and individuals. By focusing on efficiency, security, and growth, he said, ESG can rebuild trust and demonstrate that climate-friendly investments are about doing good and driving prosperity.

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Source: Reuters