ESG investing popularity declines after strong growth period, assets decreased significantly.

From Investing.com: 2024-06-22 04:02:04

Bank of America analysts noted a decline in the popularity of ESG investing after a strong 2016-2021 run. Factors driving its boom included global regulations, rising investor demand, and corporate ESG commitments. Yet, since 2021, ESG assets have decreased from $17 trillion to $8 trillion, with outflows continuing in 2024 due to various concerns.

Despite the slowdown, BofA emphasizes the importance of ESG investing, as US regulations mandate some companies to adopt ESG policies. European regulations also influence US firms eyeing European capital. The ESG data market is fragmented, with dominant players like MSCI, Sustainalytics, and ISS, alongside many niche players.



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