Insight - How 2021 became the year of ESG investing

Growing appetite: A trader works at his post on the floor of the New York Stock Exchange. A record US$649bil (RM2.72 trillion) poured into ESG-focused funds worldwide through Nov 30. — AP

INVESTORS concerned about climate change and social justice had a bumper year in 2021, successfully pushing companies and regulators to make changes amid record inflows to funds focused on environmental, social and corporate governance (ESG) issues.

Extreme weather becoming more frequent and events highlighting social justice issues, such as the death of George Floyd in Minneapolis police custody, contributed to ESG rising to the top of the agenda of investors, companies and policymakers.