A survey conducted by HSBC points to a growing backlash in the United States for investment strategies based on environmental, social and governance (ESG) criteria. This trend is influencing how fund managers integrate these considerations into their strategies.
The research, conducted from 31 May to 24 June 2023, involved 310 professionals worldwide who hold roles related to ESG decision-making. These represent $8.9 trillion in assets under management at 292 institutions.
“An increase in anti-ESG sentiment in the US is undeniable,” the analysts wrote. “In our view, this is mostly political and limited to the United States.” For example, there has been a decline in North America of those who say sustainability is a fund focus. Only a quarter of North American managers said sustainability was a primary or secondary focus, up from 37% last year.
Furthermore, approximately 44% of North American respondents also said that their motivation for having an ESG strategy has weakened over the past twelve months.