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Amanda MacDonald

No, ESG funds have not had their day

Recalibration of ESG investing has been an excellent exercise in weeding out the greenwashers, bandwagon participants and naysayers. 

Amanda MacDonaldMs

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Funds labelled as ESG or sustainable have faced headwinds over the past 18 to 24 months. Performance concerns, volatility in fossil fuel prices, the politicisation of ESG in the United States and the uncertainty around the energy transition have all added to challenges for the sector.

But despite all this, sustainability remains firmly entrenched in government policy and regulation, in corporate sustainability comments, and shareholder demands. Legislation is pushing for more, not less, sustainable solutions.

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Amanda MacDonald is the head of sustainable investment at LGT Crestone

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    Original URL: https://www.afr.com/wealth/personal-finance/no-esg-funds-have-not-had-their-day-20240502-p5foiz