Backlash Against ESG Seen in Sharp Decline of Fund Launches (2)

At some of the world’s biggest asset managers, ESG fund launches are quietly stalling.

BlackRock Inc., Deutsche Bank AG’s DWS Group, Invesco Ltd. and the asset management arm of UBS Group AG are among firms that have cut the number of new funds with environmental, social and governance mandates, according to data provided by Morningstar Direct.

This year through the end of May, just over 100 ESG funds were launched globally, putting the industry on track to fall well short of levels seen in recent years, the data show. By comparison, there were 566 ESG fund launches ...