ESG Investing

SVB Exposes ‘Lazy’ ESG Funds as Hundreds Bet on Doomed Bank

Funds fixated on climate goals overlooked governance risks
Meltdown is latest in string of awkward moments for ESG

A Silicon Valley Bank branch in Santa Monica, California.
Photographer: Lauren Justice/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Alastair Marsh and Saijel Kishan

March 14, 2023 at 2:00 PM UTC

Updated on

March 14, 2023 at 9:24 PM UTC

This article is for subscribers only.

Another market meltdown, and another costly lesson for ESG.

After being caught on the wrong side of Vladimir Putin’s war in Ukraine and the Adani scandal, hundreds of ESG fund managers are now dealing with the sting of having misjudged Silicon Valley Bank.