The ASX Corporate Governance Council’s attempt to update its Corporate Governance Principles and Recommendations has descended into a headline-grabbing debacle. A backlash over diversity disclosures has hijacked the narrative, inflamed by those peddling culture wars and US President Donald Trump’s vendetta against all things “DEI”. But the real question is: how did we get here?

This mess didn’t materialise overnight. Tensions have been simmering within the investment community for years, though perhaps largely overlooked until now. At the heart of the conflict? ESG – specifically, the split between those who see it as highly relevant to shareholder value and those who treat it as a moral crusade. There is a significant variation in approaches between investment managers, super funds, companies and other stakeholder groups.