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.
