ESG & Investing
US ESG Bond Market Chokes on Republican Backlash, Investor Angst
- Sales of the debt fell by more than 50% in the first quarter
- Price incentive for companies to sell the bonds has vanished
Greg Abbott, governor of Texas, during an election night rally in McAllen, Texas, last November.
Photographer: Jordan Vonderhaar/BloombergThis article is for subscribers only.
US sales of bonds designed to help companies do good are plunging amid pressure from investors and Republican politicians.
Companies sold about $6 billion of bonds last quarter to pay for projects that help the environment, achieve a social goal, or improve their governance, a type of debt known as ESG. That’s down more than 50% from the same time last year, according to data compiled by Bloomberg, which focused on companies outside the financial industry.