While many factors in 2022 lessened the appeal of investing sustainably for many consumers, reports show that demand continues to grow for such assets.
Last year has proved difficult for many supporters of investing in sustainable funds. Statistics show that sustainable funds globally attracted an estimated $22.5 billion of net new money in Q3 of 2022. This figure was less than the $33.9 billion of investment inflows in Q2 but viewed against a backdrop of substantial challenges in the market, sustainable funds reportedly held up better compared to the broader market, which recorded net outflows of $198 billion in the third quarter of the year.
Sustainable investment funds also faced a steady increase in vocal criticism from ESG supporters with many raising concerns with regulators regarding the issue of “greenwashing”. In many high-profile cases, this led to actions by the authorities, notably the charges levelled against Goldman Sachs which saw the company agree to pay a penalty of $4 million for failures found in its ESG research.
However, despite the negative factors the growing attraction of investment products that are aligned with ESG criteria is unmistakeable. Leading this trend is the forecast from experts that the global transition to meet net zero emissions is on course to accelerate increasing opportunities for investments in the field.
Those interested in ESG (environmental social and governance) investing often consult specialists in portfolio management in Chester and London, among other financial centres around the UK. Wealth managers help investors build portfolios that reflect their stance on sustainability and personal ethics with a diverse range of assets.
