The frenzy around ESG investing — weighing environmental, social, and governance factors — has cooled into something more measured on Wall Street. After a wave of hype and a political backlash, New York's money managers are recalibrating how they market sustainability.

The fictional firm Meridian Asset Management has rebranded some funds and dropped the loudest ESG language, while quietly keeping much of the underlying analysis. Its executives say clients still want the risk insights, just without the culture-war baggage.

The retreat from labels doesn't necessarily mean a retreat from the substance. Many managers argue that factoring in climate and governance risk is simply good analysis. The marketing has changed; the spreadsheets, largely, have not.