ESG has lost its meaning. One advocate says let’s throw it in the trash
- Media Manager
- Oct 2, 2023
- 1 min read
Microsoft Start - CNN
Written By: Nicole Goodkind
Published: October 3rd, 2023
Not so long ago, Wall Street had a particular obsession with ESG investing, which favors companies that promise to make certain strides on the environment, societal impact and corporate governance. Nearly every CEO of a major company touted their firm’s progress toward creating a more sustainable future.
Now the term is falling out of favor. S&P 500 companies citing “ESG” on earnings calls last quarter reached their lowest number since the same quarter in 2020, according to FactSet data.
Dedicated ESG funds have also lost popularity with investors.
Total assets under management in ESG funds fell by about $163.2 billion globally during the first quarter of 2023 from the year before, according to data provider Lipper.
What’s happening: It’s time to throw the ESG name into the wastebasket, says Lynn Forester de Rothschild, founder of the Council for Inclusive Capitalism.
The term has become too politically charged and needs to be replaced with something more meaningful, she told CNN Business.
