ESG should not be confused with the radical ‘woke’ brigade

What happens when a company or institution, in a most hypocritical manner, uses the cloak of ESG and ethics to behave badly? The story of Nigel Farage and Natwest Bank is an interesting case study in how one bank tried to use ESG to prevent freedom of speech.

Nigel Farage may not be to everyone’s taste, but when it emerged that the private bank Coutts & Co dropped him as a customer because “his publicly stated views were at odds with our position as an inclusive organisation”, all hell, rightly, broke loose. 

Farage has never been formally charged with any wrongdoing, and as a citizen of a democratic society, his freedom of speech matters just as much as anyone else’s. 

As the UK Prime Minister pointed out in a tweet, “No one should be barred from using basic services (like banks) for their political views. Free speech is the cornerstone of our democracy.” 

Andrew Griffith, the economic secretary of the Treasury, then summoned the heads of 19 banks and fintechs to a meeting. He asked them to explain how, in light of the treatment of Farage, they would protect customers’ freedom of speech and ensure that no one is penalised for exercising it. He was right to do so. 

ESG simply isn’t woke

Some in media commentary circles have blamed the corporate ‘woke brigade’ and environment, social, and governance (ESG) as the root causes of the Farage debacle. 

This is unfortunate for ESG because it is meant to be the opposite of ‘woke’. 

Creating woke corporations that only cater to a specific political agenda and alienate other sections of society is not what ESG is all about.

‘Wokery’ is against the principles of ESG

The awful term ‘woke’ is actually anti-free speech and alarmingly didactic. It is currently being used, in some parts of the world, as a derogatory term intended to hurt. This is counter to good governance.

ESG, on the other hand, is about effective governance; it is not about creating companies where everything is politicised and businesses are afraid to say anything.

ESG, like good governance, is about embracing different viewpoints rather than trying to create a perfect corporate world. And it does have a liberal backbone. 

‘Wokery’, unfortunately, does not embrace different views and is essentially illiberal.

Freedom of speech is a vital part of good governance. 

While ESG may be confused with ‘woke capitalism’ by some, the reality is that proper environmental, social and governance will strive to protect the diversity of thought and the freedom of speech of all involved – corporate bosses, their employees and their customers. 

ESG should not be confused with the radical ‘woke’ brigade, and Nigel Farage deserves better treatment. 

Anthony Quigley is a director and co-founder of the Corporate Governance Institute.