New Crop of US Investment Firms Vying for Opportunities Amid Anti-ESG Backlash

Insights from Todd Khozein, CEO of SecondMuse, on the risks of neglecting governance, citing the Enron collapse as a cautionary tale.

A new wave of investment firms emerged in response to the growing backlash against ESG (environmental, social, governance) investing. These firms, founded amid conservative sentiments, focused on financial returns without prioritizing ESG factors. Todd Khozein, CEO of SecondMuse, noted in an interview with S&P Global that the anti-ESG movement could be risky, pointing to the collapse of Enron as an example of failing to consider governance risks.