Investors are withdrawing billions of dollars from funds that focus on environmental, social, and governance (E.S.G.) principles due to concerns over green-washing, political tensions, and boardroom debates. Last quarter saw $5 billion pulled out of E.S.G. funds, contributing to a total of $13 billion withdrawn throughout the year, marking the worst calendar year on record for such funds. Even prominent supporters like BlackRock have become quieter on the issue amid political tensions. Despite the sector’s worth still in trillions and its strong median return of 24.4 percent last year, investors’ returns have declined from their peak in 2021 due to factors like rising interest rates and lack of regulatory clarity. This political heat has led to fund closures outnumbering new openings for two consecutive quarters.

https://www.nytimes.com/2024/01/19/business/esg-funds-withdrawals.html