Nervous Investors Tear Up ESG Playbooks in Election Supercycle.

INVESTORS; EXCHANGE traded funds; PORTFOLIO management (Investments); ELECTIONS; ENVIRONMENTAL policy; SHORT selling (Securities)

Investors are reducing their exposure to environmental, social, and governance (ESG) assets due to concerns raised by candidates in global elections about the costs and speed of emissions reduction efforts. Clean energy firms have been affected by the uncertainty surrounding the transition away from fossil fuels and the tougher political rhetoric. The Solactive European Renewables gauge has dropped 3% since the European Parliament election, which saw a decline in support for Green candidates. In the US, there has been a surge in liquidations of ESG-aligned exchange-traded funds and the largest-ever quarterly outflows from products tied to the theme, driven by a backlash against green principles and positioning for a potential new Donald Trump presidency. [Extracted from the article]

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