You are 100% correct ... except that the gubment already has a say in it. When Hussein was prez he ordered that federal pension funds divest from companies that are environmentally or socially "bad". Thus, investment firms created a new industry to make a bogus ESG rating. Many states followed Hussein's example and now many state pensions don't invest in low score ESG funds.
Thus if you're a CEO it's in your shareholders' best interest to score high on the BS ESG rating.
Side note: some ESG mutual funds dropped Tesla recently as soon as Musk came out and said he was going to quit voting Dim. It's not like Tesla quit making EV's or selling carbon credits or anything else the Dims pay attention to. Evidently all that matters in an ESG score is how much you butt kiss the Dims.
states attack esg
Republicans plan legislative assault on ‘woke’ ESG firms
https://www.eenews.net/articles/republicans-plan-legislative-assault-on-woke-esg-firms/
DeSantis Amps Up ESG Attack, Banning Strategy for State Pensions