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The rise in financial instruments marketed under the moniker
of ESG [environmental, social and governance] as a direct
result of the Covid-19 crisis adds strength to the calls for
While the economy slumps, investments graced with ESG
credentials outperform the rest of the market. ESG investment
figures are likely to rise as this trend continues, and with
that will come more opportunism and room for greenwashing.
A recent S&P Global Market Intelligence report looked at
17 exchange-traded funds (ETFs) and mutual funds with more than
$250 million in assets under management based on ESG criteria.
Of those, 12 have lost less value so far this year than the
S&P 500 index. There have been marked differences in the
declines in regular ETFs compared to non-ESG instruments.
"There is a lot of confusion in...