THE EVOLVING STATE OF ESG
Since the beginning of 2020 through the second quarter of 2021, sustainable investing has attracted over $90 billion in new cash flow, raising the AUM of equity Environmental, Social and Governance (ESG) criteria funds to an estimated $537 billion.
Despite the massive interest in ESG investing on the part of individuals and institutions, there remain some challenges for investors and advisors alike. For instance, there is no standard definition of what ESG represents. Can a fossil fuel company be considered ESG eligible if it’s aggressively transitioning to renewable energy? Does the social toxicity of a social media giant preclude it from ESG portfolios despite its low carbon footprint?
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