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Environment
Alex Edmans, Professor of Finance, London Business School

Sustainable investment: want a green place to start putting your money away? Here's what you need to know

Socially responsible investing is becoming more popular. Shutterstock

Supposedly sustainable investment funds make a staggering list of promises, including higher returns, lower risk, combatting climate change and even supporting diversity. And many believe them: investments in ESG (environmental, social and governance) funds are on track to pass £34 trillion by the end of 2022, nearly double their £18.4 trillion in 2016.

But sustainable investing has also attracted strong criticism. Former BlackRock sustainable investing chief Tariq Fancy labelled ESG a “dangerous placebo”, and the Wall Street Journal has published a week-long series of rebuttals to the trend, with their opening piece entitled “Why the Sustainable Investment Craze is Flawed.”

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