ESG & Investing

ESG Investment Cools as the Sector’s Notoriety Grows

A spike in public criticism of ESG, by Elon Musk and others, may be leading institutional investors to reconsider their allocations. 

Elon Musk, chief executive officer of Tesla Inc.

Photographer: Samuel Corum/Bloomberg
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Since the start of 2019, investors have plowed more than $300 billion into environmental, social and governance (ESG)-themed exchange traded funds. Monthly investment has ebbed and flowed, but the annual trend has been on a consistent upward trajectory: $30 billion in 2019, $94 billion in 2020, and $159 billion in 2021.