Global Investors Warn of Impending ‘Shakeout’ of ESG Funds (1)

A lot of ESG bets that once looked good no longer do.

Martijn Kleinbussink, senior portfolio manager at the sustainable equity team of Van Lanschot Kempen NV, describes it as a “shakeout” reminiscent of the dot-com bubble. For ESG fund managers, “there will be way more focus on combining a solid financial model with a solid sustainable model going forward,” he said in an interview.

After a year shaped by war, an energy crisis, decades-high inflation, rapidly rising interest rates and much stricter regulations, the world in which environmental, social and governance investing got its foothold has been ...