
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.”