Braskem's Resilience Challenges ESG Programs

Jan. 30, 2024
Investor exodus raises concerns over greenwashing.

Braskem’s rebound from a partially collapsed salt mine in Maceio, Brazil calls into question the strength of environmental, social governance programs, Bloomberg reported on Jan. 29.

Shortly after the reported collapse, investors quickly dumped debt, but the selloff only lasted less than a month before bond prices recovered, according to Bloomberg.

Last year marked the first time ESG-focused funds experienced worldwide net withdrawal, as investors swiftly redirected their funds toward traditional asset classes offering more promising returns.

Investors pulled $13 billion from ESG funds in 2023, Morningstar reported.

Greenwashing and the increasing politicization of ESG programs could be factors contributing to the investor exodus, the New York Times reported on Jan. 19.

Sponsored Recommendations

Keys to Improving Safety in Chemical Processes (PDF)

Many facilities handle dangerous processes and products on a daily basis. Keeping everything under control demands well-trained people working with the best equipment.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...

Managing and Reducing Methane Emission in Upstream Oil & Gas

Measurement Instrumentation for reducing emissions, improving efficiency and ensuring safety.

Micro Motion 4700 Coriolis Configurable Inputs and Outputs Transmitter

The Micro Motion 4700 Coriolis Transmitter offers a compact C1D1 (Zone 1) housing. Bluetooth and Smart Meter Verification are available.