Adani Shock Exposes ESG Fund Bosses Caught in ‘Terrible’ Bet (1)

ESG fund managers have once again found themselves on the wrong side of a market meltdown.

Roughly 770 ESG fundsworldwide hold shares of Adani Green Energy Ltd., which just lost about a quarter of its value after US prosecutors charged Gautam Adani with suspected bribery. It’s one of a group of companies in the Adani empire that made it past ESG screens, only to be dumped by investors as they digest a fresh litany of alleged breaches.

“Adani Green’s terrible governance was in plain view,” said Henry Kinnersley, co-founder of Snowcap Research, an activist investor that has ...