The real problem here is how index funds are directed.
3 firms - Blackrock, State Street and Vanguard, control at least 25% of the board seats in almost every Fortune 500 company because when you put your money into an index fund (which is where most large pools of money end up), you typically give up your vote by proxy to the fund manager.
This leads to 3 companies controlling an enormous chunk of the economy, and they are proponents of ESG. So when you just dump your money into a 401k you are giving them your money and votes to buoy ESG investments.
3 firms - Blackrock, State Street and Vanguard, control at least 25% of the board seats in almost every Fortune 500 company because when you put your money into an index fund (which is where most large pools of money end up), you typically give up your vote by proxy to the fund manager.
This leads to 3 companies controlling an enormous chunk of the economy, and they are proponents of ESG. So when you just dump your money into a 401k you are giving them your money and votes to buoy ESG investments.