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Investors area increasingly skeptical of ESG. This is why

LONG READ: ESG has become a punching bag for the far right, for disgruntled corporate executives and even industry insiders. But there’s one group whose growing disapproval might be the ultimate game changer.
ESG returns, which rode out the worst lockdown-induced selloffs, also are starting to sag. By the second week of June, European ESG equity funds had, on average, lost 14%, compared with an 11% decline in the Stoxx Europe 600 index. In the US, they lost 16%, which was only marginally better than the S&P 500. | Photo: Nick Chong/Unsplash
ESG returns, which rode out the worst lockdown-induced selloffs, also are starting to sag. By the second week of June, European ESG equity funds had, on average, lost 14%, compared with an 11% decline in the Stoxx Europe 600 index. In the US, they lost 16%, which was only marginally better than the S&P 500. | Photo: Nick Chong/Unsplash
By Natasha White and Frances Schwartzkopff / BLOOMBERG

Retail investors are slowly starting to look under the hood of the USD 40trn environmental, social and governance industry that’s increasingly steering their savings, and many aren’t liking what they see.

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