Higher corporate social responsibility ratings limit short selling. Among firms with high expected values of short interest, those with higher ESG scores and higher environmental scores have less shorting. We find evidence consistent with higher ESG scores creating additional costs and risks for short sellers through two channels: 1) some long-side investors are reluctant to sell high ESG stocks, even if valuations warrant it; and 2) short squeeze risk-high ESG stocks experience positive sentiment-driven price jumps when public attention to ESG spikes. The lack of shorting impacts asset prices. Stocks with high ESG scores are less responsive to negative earnings announcements. High ESG stocks that are avoided by short sellers have low future stock returns.