Letter: Further evidence that ESG is not just a passing trend

Your recent article “Investors take a fresh look at ESG funds” (Report, June 29) offers a timely snapshot of the evolving ESG investment landscape. However, it also serves as a critical reminder that ideological opponents and, indeed, Trojan horses of the so-called “anti-ESG” movement were premature in declaring ESG’s demise.

The resurgence in client interest, coupled with the shift towards more sophisticated, engagement-focused strategies, are robust signs of a maturing market. This suggests that ESG is not merely a passing trend, but a fundamental shift in investment philosophy.

While challenges persist, the adaptability demonstrated by investors and fund managers highlights the resilience of sustainable investing principles. It thus continues to become increasingly clear that ESG considerations are not just compatible with sound financial strategy, but may be integral to it in the longer term.

As the debate continues, the long-term goal of aligning capital allocation with a sustainable future remains as relevant as ever. The reported comeback of ESG funds is not just a cyclical swing, but a step towards a more nuanced, impactful approach to investing.

Ioannis Ioannou
Associate Professor of Strategy and Entrepreneurship
London Business School, London NW1, UK