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US investors ditch green funds as ‘woke capitalism’ backlash bites

Cash has flowed out of ESG strategies over past year even as sector continues to boom in Europe
Republican figures including Senate minority leader Mitch McConnell, left, and Florida governor Ron DeSantis, have in the past year campaigned against the use of investment strategies that penalise fossil fuel producers

US investors’ enthusiasm for green investments has begun to wane in the face of repeated attacks on “woke capitalism” by Republicans, in a growing contrast to the billions still pouring into sustainable strategies in Europe.

Funds marketed with a sustainable label were hit with $12.4bn in net outflows in the US in the past 12 months even as green funds in Europe added $126.3bn, according to the data provider Morningstar.

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