The 'Greta Effect': Surge in eco-awareness driving 'most significant' period of ESG inflows

High-profile eco campaigns among factors behind spike in returns

The increasing visibility of environmental issues over the past 18 months, owing to key figures such as Sir David Attenborough and Greta Thunberg, is among the factors contributing to more than £50bn of net inflows to ESG funds marketed to UK investors, according to key industry figures.

Investment Week analysis of Morningstar data has found funds managed with environmental considerations based in the UK, Ireland and Luxembourg raked in approximately €61.1bn (£54.7bn) over 18 months to the end of June. Can artificial intelligence fix ESG rating shortfalls? The bulk of inflows went to Luxembourg-domiciled funds, which saw €38.5bn (£34.2bn) over the period, compared to €16.7bn and €6.4bn in Irish and UK funds respectively. Investment Association (IA) data also suggests ESG funds registered in its universe are undergoing a record-breaking period.  Explicitly "ethic...