From Nasdaq Stock Market, Inc.:



Sustainable funds faced decreased demand globally in 2023 due to political controversy and concerns about “greenwashing,” despite the category outperforming the broader market thanks to a technology stock recovery. Political backlash in the United States and suspicions of greenwashing contributed to the decline in ESG investing. While funds posted inflows, it was significantly lower than in previous years. The performance of responsible funds surpassed other funds, and assets in responsible funds were $2.56 trillion at the end of 2023. Despite the political backlash and declning demand, responsible funds are still outpacing other funds in attracting new deposits. The rise in greenwashing led to a slowdown in demand, but also the performance of these funds continued to do better than the overall market. Overall, the outlook is becoming more favorable for sustainable strategies and it is expected that there will be continued political controversy.



Original: YEARENDER-ESG funds suffer weaker demand despite help from tech-sector performance