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Trillion-Dollar ESG Boom Rings Bubble-Trouble Alarm in New Study

Oct. 28, 2021, 1:03 PM

The doing-well-by-doing-good conviction driving ESG investors around the world is nothing more than an illusion of their own making, according to a controversial new study.

Research from the Swiss Finance Institute argues stocks highly rated on environmental, social and governance metrics have outperformed in recent years all thanks to the trillions of dollars flooding the sector. The fundamentals of socially responsible investing have played no role in driving these returns.

In fact, ESG bets would have backfired spectacularly without this influx of cash -- leaving Wall Street portfolios at the mercy of volatile capital flows.

“Under the absence of flow-driven ...

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