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Last year in The Daily Signal, I highlighted the efforts the Trump administration and state governments have made to root out DEI (Diversity, Equity, and Inclusion) and ESG (Environmental, Social, and Governance). Since then, the situation has only gotten more dire for the ESG movement and advocates of “woke capitalism.” A recent Ballotpedia report shows the dramatic decline of ESG investing.

According to Ballotpedia, from 2020 to 2026, 40 states enacted 155 ESG bills. Of those, 76% opposed ESG investing, while only 24% supported it. During the 2026 legislative sessions alone, Florida, Idaho, Indiana, Mississippi, Oklahoma, South Carolina, and Utah passed anti-ESG bills. In contrast, only Illinois passed a pro-ESG bill this year.

Another major nail in the coffin came with the initial public offering of SpaceX. MSCI Inc., a financial company that issues ESG ratings, gave SpaceX its lowest rating a day before the offering—to no effect. Even with that rock-bottom score, SpaceX launched the largest IPO in history. The lack of investor concern makes sense considering that ESG shareholder proposals dropped 47% in 2026.

Even the movement's former champions are beginning to retreat. Few people have tried harder to popularize and institutionalize ESG in our economy than BlackRock CEO Larry Fink. In last year’s annual chairman letter to investors, he called for an increase in U.S. energy production while leaving out his former favorite buzzwords: ESG, sustainability, climate change, and DEI.

It isn’t rare these days to see a headline from a major financial paper reading “ESG is Dead.” That proclamation is more than just a vibe—the data points to that reality. While many blue states and the European Union continue pushing mandates to keep the ESG framework on life support, the broader market has clearly moved on. If ESG isn’t dead yet, it’s certainly knocking on death’s door.