Finance
ESG Pioneer Expects Shakeout for Funds Hyped by ‘Fairy Dust’
Paul Clements-Hunt says the finance industry has done little to account for environmental, social and governance risks: “It’s a whirligig, a frenzy, a marketing mania.”
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After attracting trillions of dollars, the ESG fund industry is headed for a “shakeout” over the next five years, according to the man who coined the acronym.
The finance sector has “sprinkled ESG fairy dust” on products that do little to account for environmental, social and governance risks, said Paul Clements-Hunt, adding that ESG funds in jeopardy include those that track benchmark indexes, some of which invested in Russia.