China Stirs Unease for ESG Managers Blindsided by Russia’s War
- Putin’s ties with Xi were on display at Beijing Olympics
- Zevin manager weighs what to do about firm’s holdings in China
Presidents Vladimir Putin and Xi Jinping meet in Beijing, on Feb. 4, 2022.
Photographer: Alexei Druzhinin/AFP/Getty Images
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Caught flat-footed by Russia’s war on Ukraine, fund managers who get paid to avoid environmental, social and governance risks have started to look at China with a fresh sense of unease.
Their exposure to China is huge. Pure ESG funds domiciled just in Europe have about $130 billion invested in China assets, according to data compiled by Bloomberg. A further $160 billion is held by European-based funds that have screened for ESG-related hazards.