ESG Hardliners Blacklist $16 Trillion U.S. Treasuries Market (1)

Oct. 15, 2019, 2:09 PM

Some of Europe’s strictest ESG funds are snubbing the world’s most liquid investment -- the $16 trillion U.S. Treasuries market.

A 33 billion-euro ($36 billion) French state pension plan and ESG funds run by the likes of Erste Asset Management, Joh. Berenberg Gossler & Co. and Union Investment all shun Treasuries based on the U.S. government’s stance on capital punishment or climate change. The exclusions rank the U.S. alongside arms makers, tobacco producers and distilleries in falling foul of environmental, social and governance standards.

“ESG-dedicated investors would usually avoid or question investments in U.S. Treasuries,” said Rupini Deepa Rajagopalan, head ...

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