“ESG funds are experiencing a decrease in new inflows and increased closures due to underperformance and investor withdrawal. Regulatory tightening, greenwashing exposure, and a return to oil and gas investments contribute to the declining appeal of ESG funds. Despite previous overperformance, ESG funds are now struggling as investor sentiment shifts back towards traditional energy sectors and increased scrutiny on sustainability claims.”

[COMMENTARY] Investor interest in the ‘essence’ of ESG is only going to increase, though the term ESG might become less used.
Is the ESG Investment Bubble Bursting? By Irina Slav, December 23, 2023, OilPrice, UK.