Wall Street may be down, but ethical investing is on the rise

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There’s a noticeable lean towards green as ESG investing booms

September 29, 2021 / 11:40 AM IST

Socially responsible investing, or ESG (Environmental, Social and Governance) investing, is seeing new shoots lately.

There’s a noticeable trend in investors favouring stocks with responsible companies behind them.  Increasingly, people are using their values and ethics to guide investment choices — especially millennials. A Morgan Stanley report revealed that 90% of millennial investors say they believe in sustainable investing.

And it’s showing. investors contributed $51 billion to sustainable funds in 2020, compared to less than $5 billion five years ago – that’s 10X growth for you.

How much did ESG funds grow last year, you ask? — nearly double their 2019 value.

In another big move towards ESG, Harvard announced that it’s ending investment ties to fossil fuels. Its $42 billion endowment fund. Psst, it’s a fund that’s bigger than roughly half of the world’s economies.

On Wall Street, the three bellwethers ended on synchronised lows on slowing economic growth and rising Delta cases.

For the week, the Dow slid 0.07% and is down for three consecutive weeks. The S&P 500 lost 0.57% this week, its longest losing streak since Monday, February 22, 2021 when the market fell for five straight trading days. The tech-heavy Nasdaq declined 0.47%.