Investors Say They’re Moving Away From ESG as ‘an Umbrella Concept’
The investment tool has become too polarizing, according to asset owners interviewed in global Morningstar survey.
The Morningstar survey found that many asset owners feel ESG has evolved into a marketing term that’s left the investment industry “open to concerns of oversimplification or accusations of greenwashing.”
Photographer: Gabby Jones/BloombergWhile institutional asset owners such as pension funds and insurers say they remain committed to sustainable investing, they’re less wedded to ESG as “an umbrella concept.”
They now widely treat ESG as three separate parts as opposed to a single strategy, according to a survey by Morningstar Inc. of 25 asset owners across North America, Europe and the Asia-Pacific region. Until recently, the anti-ESG push has been concentrated in the US.