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Chart: Is ESG Investing in Decline?

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This area chart shows the decline of fund flows in ESG investments.

Is ESG Investing in Decline?

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These days, ESG investments have lost their luster given high interest rates, political backlash, and greenwashing scrutiny.

In 2021 during the pandemic boom, U.S. sustainable funds hit a record $358 billion in assets, up from $95 billion in 2017. But since then, investor interest has waned as higher borrowing costs impact capital-intensive clean tech stocks.

This graphic shows the drop in sustainable fund flows—often considered an indicator of investor sentiment—based on data from Morningstar.

Slowing Demand

In 2023, investor appetite cooled for sustainable investments, as fund flows notched their worst year on record.

Overall, flows sank $13 billion as fund performance lagged behind conventional funds. Adding to this, concerns surrounding the murkiness of environmental, social, and governance (ESG) ratings were put under the spotlight.

As ESG pushback intensified in U.S. politics, at least 165 anti-ESG bills were introduced in 2023. Politicians have claimed that ESG criteria negatively impacts financial returns, but evidence behind that is mixed.

While sustainable funds underperformed traditional funds in 2023, a separate study showed that ESG portfolios had as much as 6% excess returns annually compared to benchmark indexes between 2014 and 2020.

ESG Investments: A Closer Look

One key aspect of ESG funds is whether they hold investments that align with the UN Sustainable Development Goals (SDGs).

Globally, 542 funds with $125 billion in assets are associated with at least one of these objectives. The table below shows the top five SDGs, by ETF assets under management (AUM).

SDGGoalNumber of ETFsAUM
SDG 13Climate Action275$65.4B
SDG 7Affordable
and Clean Energy
80$15.3B
SDG 9Industry, Innovation,
and Infrastructure
49$13.4B
SDG 6Clean Water
and Sanitation
16$9.1B
SDG 11Sustainable Cities
and Communities
34$5.5B

Source: Trackinsight. As of January 7, 2024.

We can see that Climate Action is the highest overall, with companies held in these ETFs making commitments to lower emissions and advance sustainability.

For instance, Home Depot has cut electricity use by over 50% since 2010 in U.S. stores, and aims to use renewables for all of its electricity by 2030. In addition, Microsoft has committed to this goal through a number of initiatives, including providing access to clean water to over one million people across Indonesia, Brazil, India, and Mexico in 2023.

While investor interest has slowed, 35% of advisors said they used ESG funds last year, based on a Journal of Financial Planning survey. As the industry matures, it remains to be seen if ESG investments will see a resurgence, especially if interest rates fall in the coming years.

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Ranked: Top 20 Countries by Plastic Waste per Capita

Visualizing plastic waste per capita reveals a surprising list of countries that you may not have expected.

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Ranked: Top 20 Countries by Plastic Waste per Capita

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Single-use plastic waste is perhaps one of the biggest environmental issues of our time. Every year, millions of tons of plastic end up in oceans and landfills, harming wildlife and ecosystems.

To make matters worse, plastics take hundreds of years to decompose, leading to long-term environmental and health hazards as they break down into microplastics that contaminate water and food sources.

In this graphic, we visualized the top 20 countries that generated the most single-use plastic waste per capita in 2019, measured in kilograms per person. Figures come from research published in May 2021, which we sourced from Statista.

Data and Key Takeaways

The data we used to create this graphic is listed in the table below.

RankCountryKg per personPounds per person
1🇸🇬 Singapore76168
2🇦🇺 Australia59130
3🇴🇲 Oman56123
4🇳🇱 Netherlands55121
5🇧🇪 Belgium55121
6🇮🇱 Israel55121
7🇭🇰 Hong Kong55121
8🇨🇭 Switzerland53117
9🇺🇸 U.S.53117
10🇦🇪 UAE52115
11🇨🇱 Chile51112
12🇰🇷 S. Korea4497
13🇬🇧 UK4497
14🇰🇼 Kuwait4088
15🇳🇿 New Zealand3986
16🇮🇪 Ireland3986
17🇫🇮 Finland3884
18🇯🇵 Japan3782
19🇫🇷 France3679
20🇸🇮 Slovenia3577

Countries from all around the world are present in this ranking, highlighting how plastic waste isn’t concentrated in any one region.

It’s also interesting to note how most of the countries in this top 20 ranking are wealthier, more developed nations. These nations have higher levels of consumption, with greater access to packaged goods, take-out services, and disposable products, all of which rely on single-use plastics.

Where’s China and India?

Note that we’ve visualized plastic waste per capita, which is different from the total amount of waste produced by a country. It is for this reason that major polluters, such as China and India, are not present in this ranking.

It’s also worth noting that this focuses on the demand side of plastics, rather than where plastic products were initially created or produced.

If you’re interested to see more visuals on plastic waste, check out Which Countries Pollute the Most Ocean Plastic Waste?.

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