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ESG funds face withdrawals

05:54

ESG funds face withdrawals
Source: Adobestock

Global ESG funds are under mounting pressure after posting their first-ever year of net capital outflows, despite solid returns from clean energy stocks and record green bond issuance. Analysts say performance isn’t the problem; investor confidence is.

Data from Morningstar shows sustainable funds could see $84 billion withdrawn in 2025. Europe, long the sector’s stronghold, has been hit hardest, while U.S.

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