ESG: Progress on E has been much faster than on SG due to generational preferences and the power of the “old”

In OECD countries, the outlook with regard to the environment has improved thanks to the announced transition to carbon neutrality, including now in the United States and China, and the pressure exerted on companies from the public, governments and finance. But the social outlook is still negative , due to the effect of the very high required return on equity for shareholders, leading to weak wages and therefore rising poverty and vulnerability for a significant segment of the population. Why is capitalism making progress on E and not on SG? The explanation may be generational. The “old”, who hold power and control finance, want the climate and environmental situation to improve. In contrast, they want to maintain a high return on their financial investments and are therefore not prepared to accept a lower return on equity for shareholders