Adani Shock Rips Through ESG Funds as Strategy Fails Test
- Adani stocks are spread across large numbers of ESG funds
- ESG fund exposure to fraud risk raises doubts about policies
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The scandal gripping the Gautam Adani empire is turning into another bad milestone for ESG.
Stocks bearing the Adani name appear in more than 500 so-called Article 8 funds that are supposed to “promote” environmental, social and governance goals under European Union rules, data compiled by Bloomberg show. About 80 of those exposures are via direct holdings, while the rest are mainly through funds of funds or index trackers, according to the data, which correct for duplicate holdings.