ESG investment assets will decline worldwide for the first time in 2023 - sustainability boom already over?

ESG investment assets will decline worldwide for the first time in 2023 - sustainability boom already over?

According to a report by www.wallstreet-online.de, ESG investment assets decreased worldwide for the first time in 2023. This raises the question of whether the sustainability boom on the financial market is already over.

ESG (Environmental, Social and Governance) has become significantly more important in recent years and has influenced the investment strategies of major asset managers. The value of sustainable investment products rose from just under $23 trillion in 2016 to over $35 trillion at the end of 2020, an increase of more than 50 percent.

However, this positive development now appears to have stalled. A decline in ESG investing has far-reaching implications for the financial market and investors. Asset managers and investors who rely on sustainable investment products may find themselves forced to rethink or adapt their investment strategies. This could lead to a redistribution of capital and influence the business environment for sustainable companies.

In addition, media coverage and public interest in sustainability issues may decrease, which could impact the perception and image of ESG-oriented companies and industries.

The exact reasons for the decline in ESG assets still need to be analyzed and understood. However, it is clear that this development will have potentially far-reaching consequences for the financial market and investors. The end of the sustainability boom in the financial market could pose significant challenges for the industry and change the ESG movement as a whole. It remains to be seen how the situation will develop and what measures will be taken by asset managers and companies to respond to these changes.