In the US, the subject of ESG has been heavily politicised, resulting in some extreme consequences for the investment communities in certain parts of the country. In Europe, there has been some cooling towards ESG, largely driven by energy security concerns, but it is still very much a priority across the continent.
Curiously, one fact to point out is that flows in 2022 into ESG corporate credit funds held up better than flows into non-ESG equivalents, including in the US, and this trend has continued so far into 2023. I think it is important to remind ourselves that ESG is not only about E, or environmental, which has been, essentially, the focus of controversy in the US. It is also very much about S, social, and G, governance factors, both of which are absolutely instrumental in ensuring that a company is a long-term business success
This post is funded by Janus Henderson Investors