The Wall Street had a particular obsession with ESG investing, which favors companies that promise to make certain strides on the environment, societal impact and corporate governance.
Nearly every CEO of a major company touted their firm’s progress toward creating a more sustainable future. Dedicated ESG funds have also lost popularity with investors. Total assets under management in ESG funds fell by about $163.2 billion globally during the first quarter of 2023 from the year before.