In spite of the fact that there is no shortage of sustainable funds, which invest on the basis of factors like companies' carbon footprints or workforce diversity, new investment was attracted to 2022 by these funds.
Broad market saleoff
Many sectors were affected.
Investments into U.S. sustainable funds including stocks, bonds and other categories fell to $3.1 billion in 2022 from $69.2 billion a year earlier, according to Morningstar. Conventional funds that don't consider environmental, social or governance factors, also known as ESG, suffered more than $370 billion in withdrawals last year.