- The growth sell-off of 2022 dealt a huge blow to many ESG funds
- In a challenging environment, which names have delivered the goods?
The higher-rate era has shown the limits of the idea that investing with an environmental, social and governance (ESG) tilt is a surefire way to achieve above-average returns. It’s clear now that those returns are not assured: not consistently, or at least not yet.
Given the impact of climate change is becoming ever more visible, many investors will not unreasonably view these returns as a secondary priority. Even so, there are still reasons to ask whether ESG funds are equipped to meet their expectations.