Yea well pointed out.
There was one guy on some of the crypto podcasts that decided to try solve this in the spirit of the free market by creating a competing hedge fund that will invest in companies that are focused on their sole goal and not on the ESG side of things.
Tha major unknow for me is who decides where the money from our pensions go. I understend bonds in the local country, etc ... but how they choose a hedge fund? I even have investments in these two from my pension fund, and I'm from a tiny country in Europe ... nobody asked me, they just did it...
When the company I worked for went public, I was the Executive Director of Client Services, and prior to the take over if I said we needed to do something for our clients we did it. All I needed was reasonable justification.
When we went public, it took about a week for me to understand our clients were no longer important to the business plan, it was all about the investors, and the story you tell them about the future, daily business just became a tiny metric in the business. We even got rave reviews from Jim Cramer.
Regarding how the funds are selected, it can vary greatly from company to company