Are investors hitting the ‘pause’ button on sustainable investing?

[SINGAPORE] Sustainable investing was all the rage some years ago, but its shine appears to be fading. What would it take to revive investor interest?

Morningstar’s latest fund flows data for global sustainable funds in the first quarter found “record-high” outflows mainly in the US – which isn’t a surprise – but also in Europe, albeit to a more modest degree.

This is happening at a time when global temperatures are rising, and energy transition and climate commitments are under threat even as war has intensified carbon emissions.