Global Backlash Drives Worst ESG Fund Redemptions on Record

April 24, 2025, 10:34 AM UTC

The global market for sustainable funds just suffered its worst quarter on record with redemptions reaching an all-time high, according to a fresh analysis by Morningstar Inc.

Against a backdrop of “geopolitical uncertainty and a growing backlash against ESG,” investors withdrew an estimated $8.6 billion in the first quarter of 2025, Morningstar said on Thursday. The development marks a “stark reversal” from the $18.1 billion in inflows in the final quarter of 2024, it said.

Even in Europe, which is by far the world’s biggest market for investments targeting environmental, social and governance goals, ESG funds saw net outflows, with ...

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