Carbon Bubble
Trillion-Dollar ESG Boom Rings Bubble-Trouble Alarm in New Study
Funds would have “strongly underperformed the market from 2016 to 2021” without the huge inflows flooding the sector.
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The doing-well-by-doing-good conviction driving ESG investors around the world is nothing more than an illusion of their own making, according to a controversial new study.
Research from the Swiss Finance Institute argues stocks highly rated on environmental, social and governance metrics have outperformed in recent years all thanks to the trillions of dollars flooding the sector. The fundamentals of socially responsible investing have played no role in driving these returns.