investment viewpoints

Mission creep: what's really driving ESG underperformance?

Mission creep: what's really driving ESG underperformance?
Alexey Medvedev - Portfolio Manager

Alexey Medvedev

Portfolio Manager
Cheick Dembele - Portfolio Manager

Cheick Dembele

Portfolio Manager
Clément Mary-Dauphin - Client Portfolio Specialist

Clément Mary-Dauphin

Client Portfolio Specialist

Until recently, environmental, social and governance (ESG) investment had experienced an explosion in popularity, with more than half of sustainable equity funds outperforming their benchmarks over the last five and three years, and in 2021 alone.1

In 2022, we are seeing a shift.

Key points:

  • We have witnessed a sudden change in attitude toward sustainable investment this year as ESG-labelled funds have underperformed
  • Critics point to the excessive exposure of these funds to tech stocks, which have tumbled this year relative to the rest of the market
  • In this report, we outline our view on the best way to analyse ESG performance, and why we believe this type of investing still delivers

To read the full report, please use the download button provided.


[1] Past performance is not a reliable indicator of future results.

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