ESG & Investing

Goldman, JPMorgan Weigh In as ESG Funds Suffer Historic Blow

  • ESG fund industry recorded its worst flows ever last quarter
  • Development adds to calls for the ‘ESG’ label to be replaced

ESG funds in the US bled more than a net $5 billion in the final three months of 2023.

Photographer: VCG/Getty Images
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After the worst quarter in its roughly two-decade history, ESG’s future is once again a subject of intense debate.

Against a backdrop of attacks by the Republican Party and lackluster returns, ESG funds in the US bled more than a net $5 billion in the final three months of 2023. Combined with a huge decline in the pace of inflows in Europe, the global market for funds claiming to pursue environmental, social or governance goals suffered its first-ever net redemptions last quarter, according to Morningstar Inc.