Loan market gets stung by anti-ESG movement


Photographer: Krisztian Bocsi/Bloomberg

NEW YORK: The United States is retreating en masse from the world’s second-biggest environmental, social and governance (ESG) debt class.

The US$1.5 trillion market for sustainability-linked loans, in which borrowing is tied to ESG goals, has seen an overall slowdown in volumes this year as both interest rates and greenwashing fears rise.

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