Why ESG in America may face a rough road ahead

In the dark: The BlackRock headquarters in New York City. The company has declined to discuss a recent US$4bil (RM17.6bil) outflow from its ETF. — Reuters

NEW YORK: If BlackRock Inc’s largest environmental, social and governance (ESG)-labeled exchange-traded fund (ETF) is a bellwether for the sustainable investing industry, it’s fair to say the United States sector may be in for a bumpy ride.

The assets of the iShares ESG Aware MSCI USA ETF (ESGU) have dropped to US$13.8bil (RM61bil) from a high of US$25bil (RM110bil) as recently as a year ago.