Anyone in doubt about the market’s attitude toward ESG investing today need only look at the share price of Impax Asset Management Group Plc. It rose 33 times from late 2015 to late 2021 — and is down 70% since. Bubble, bubble crash.
In 2021, almost two-thirds of respondents said they considered environmental, social and governance (ESG) factors when investing. In 2022, that number was 60%, and this year it’s 53%, according to the annual ESG Attitudes Survey from the Association of Investment Companies. Asked why they were over ESG, the top reason given was that performance was more important.
Next up: greenwashing. In 2021, only 48% of investors said they were “not convinced by ESG claims from funds.” That number is now up to 63%. The same investors look like they are putting their money where their mouths are: The most recent data from the Investment Association showed a third month of outflows from the Responsible Investments category — a record £448 million ($547 million) in August.
