Publication date:
January 30, 2024
Diminishing Investments in Climate-Focused Funds Noted
Sales in climate-focused investing funds have significantly decreased mainly due to heightened interest rates and the rise of anti-ESG sentiment.
Investment
Recent data indicates a stark decline in the sales of climate-focused mutual funds, which have fallen from an investment peak of $151 billion in 2021 to a substantially lower $37.8 billion by the year 2023. This drop has been linked to the effects of increased interest rates and the emergence of anti-ESG (Environmental, Social, and Governance) rhetoric, which has seemingly affected investor preference and demand.