In this engaging interview, Ulrik Hallen Oen, Associate Director at DNB’s Sustainable Markets team, reflects on the intensifying backlash against ESG and what it really means for financial institutions, investors, and corporates. Speaking after his panel at Sustainable Finance Europe, Hallen Oen urges the industry to cut through the noise and return to ESG’s foundational purpose: focusing on the material environmental and social issues that affect business resilience and performance.

He explains that the current resistance to ESG stems in part from global macroeconomic and geopolitical turbulence. The energy crisis, inflation, and political instability—triggered notably by events such as the invasion of Ukraine—have caused many markets to reprioritize economic and energy security over long-term sustainability goals. At the same time, ESG as a concept has suffered from its own complexity, becoming muddled with jargon and overly broad interpretations that have made it hard for both supporters and critics to clearly define or defend.

Despite these challenges, Hallen Oen highlights that ESG’s trajectory is not universally in decline. In fact, regions like Europe remain highly committed, with a strong regulatory pipeline and consistent implementation. China also continues to push forward with green industrial policy and decarbonization efforts, leading in metrics like solar deployment. Even in the U.S., often viewed as a center of ESG resistance, resilience persists through existing legislation like the Inflation Reduction Act, which has already unlocked substantial investment—though ongoing political division poses risks to policy continuity.