Environment and Climate-Focused Funds Dominate ESG Investing

Funds concentrating on the ‘social’ and ‘governance’ parts trail far behind in terms of drawing investors’ money this year

For funds focused on ESG (environmental, social and governance) principles, the “E” remains king as a magnet for investors.

From January through October, mutual funds and exchange-traded funds specializing in environmental themes attracted far more cash than those ESG funds that focus on other sustainability areas, fund-flow data from Morningstar show.