Analysis: Money before climate; market downturn spurs ESG fund exodus

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Funds adhering to environmental, social, and corporate governance principles have been hit by unprecedented outflows in the market downturn, as investors prioritize capital preservation over goals such as tackling climate change

ESG, a classification applied to fund assets currently worth an estimated $6.5 trillion, is being tested by a drop in market values fuelled by concerns that central banks hiking interest rates to fight rampant inflation will trigger an economic recession.

Moreover, investors pulled money out of responsible investment funds - defined as such because they use criteria like ESG or religious values in their investment decisions - faster, relative to their size, than broader market funds for all but two months of 2022 through September, the data shows. , which categorizes $2.24 trillion worth of funds as "sustainable" by applying more restrictive criteria than Refinitiv Lipper, reported a 71% year-on-year drop in inflows to $139 billion for the year through September.The recent downturn demonstrates that ESG investors' attention to the needs of the planet and society does not make them indifferent to poor financial returns when their portfolios underperform, investors and analysts said.

 

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It has always been money before climate 😁 as no one (governments and industry) wants to pay for externalities

Great, inevitable news!

Funds should have one and only one objective - deliver returns to their shareholders. The rest is BS

Gee who couldn’t see this coming?!?

As expected and will likely continue until we get past the looming Global Recession!

Also ESG is woke Marxist nonsense. Get rid of it.

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