The S&P Global Clean Energy Index has plunged 30% this year, as higher interest rates and supply-chain bottlenecks hammer wind and solar stocks. Bloomberg’s latest Markets Live Pulse survey shows investors expect the downturn to continue into 2024, with the negative sentiment extending to electric vehicle producers including Tesla Inc.
And the introduction of regulations across jurisdictions is forcing asset managers to justify ESG claims that previously went unchecked. There’s a “need for clearer definitions and a more shared understanding around what makes a sustainable asset ‘sustainable,’” GSIA said in its report.
The global investment industry is “at a critical juncture,” with the U.S. facing its own “nuanced local financial market challenges,” Lettini said.
In its report, the GSIA said “the most common sustainable investment strategy globally is corporate engagement and shareholder action, followed by ESG integration then negative or exclusionary screening.”
This article was provided by Bloomberg News.