Why is ESG (Environmental, Social, and Governance) investing becoming such a controversial topic?

Increasingly, Wall Street has been advocating for investment strategies based on environmental, social and governance factors, arguing these generate “more stable and higher long-term returns.” Backing the logic was, among other evidence, the relative resilience of ESG-labeled assets at the height of the pandemic. The outperformance of ESG has come under scrutiny, however.

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