Ever wonder what the challenge is with going green?
During the first half of this year, ESG investing was one of the most cited phrases in earnings calls among companies using environmental and social factors. Unfortunately, problems like the recession, stock markets tanking, and US midterm elections have put sustainability efforts on the back burner for many companies.
The rapid increase in ESG fund investing has now stopped completely, according to a Refinitiv analysis provided by CNN Business.
ESG funds in September saw their largest outflow of investor cash since the beginning of the recession in March 2020. Additionally, these ESG funds saw assets under management go above $8.5 trillion in 2021. Now, they pool at under $7 trillion.
All of the issues, combined with a rainy forecast as far as the economy goes, have put efforts toward going green at a halt. A not-so-appealing mix of problems makes it hard for businesses to stay ESG-friendly.
Have you ever thought about the term “greenwashing?”
It’s a term that US politicians and business leaders use to accuse companies of making themselves look more environmentally friendly than they really are. This creates a false promise to consumers that they’re actually making sustainability efforts to gain trust and business. Firms like DWS and Goldman Sachs have lately been accused of using the ESG label under false pretenses.
The…
