An ESG backlash is simmering. Will it boil over?

Some critics are anti-ESG evangelists. Others have legitimate concerns. Advocates need to build the ESG case more robustly.
by Paul Bryant

esg-backlash_1920

Environmental, social, and governance (ESG) investing is being criticised on multiple fronts. It has been caught up in US culture wars, greenwashing scandals, waning investment performance, and problems with defining, measuring, and applying ESG metrics.

In Europe (including the UK), by far the dominant sustainable investing market with 83% of global sustainable fund assets, according to Morningstar’s Global sustainable fund flows: Q4 2022 in review report, flows into sustainable funds remained positive in every quarter of 2022, in stark contrast to conventional funds which saw outflows in every quarter.

CISI members can sign in to continue reading
Read your next article on your device with the new MyCISI Member App
Available on App Store and Play Store

Published: 19 Apr 2023
Categories:
  • Wealth Management
  • Risk
  • Integrity & Ethics
  • Corporate finance
Tags:
  • featured
  • green finance
  • Green and Transition Taxonomy
  • greenwashing
  • war on woke
  • ESG backlash
  • fund management
  • ESG
  • carbon footprint

No Comments

Sign in to leave a comment

Leave a comment

Submit

Further Information

Print edition archive

Take a look at past issues of the CISI membership magazine. Online and PDF copies are available.

View the back issue archive