By Paul Mueller

Whether the political dimensions of ESG are features or bugs depends on your perspective. From the perspective of ordinary citizens, though, ESG is shot through with political problems in addition to its economic problems. Although the use of ESG affects ordinary people's lives in myriad ways, those impacted have little say in the project – even through their political representatives.

The elephant in the room is the special interest rent-seeking of ESG advocates. People are building careers consulting on "anti-racism" and "Diversity, Equity, and Inclusion" initiatives. Large financial firms charge up to 40 percent higher fees to clients investing in "Sustainability" funds. Entrepreneurs offer ESG data collection and reporting software, carbon offsets, and compliance consulting.

Hundreds of thousands of people work in ESG-related roles, which come with a pay premium. Corporate sustainability officers rely on in-house diversity officers who recruit consulting ESG impact researchers who appeal to climate advocacy organizations. Every major institution, from the World Bank to the United Nations to the World Economic Forum and the constellation of investment and advisory groups, has an ESG employee contingent.