As the oil price war and coronavirus fears continue, many predict a long-term bear market – or a market in which the price of an investment falls below 20% from its 52-week high. This is particularly concerning for ESG investments, which have been riding a wave of increased popularity through the last few months, but most of which have never faced a bear market. “ESG investing as we know it is relatively new and hasn’t been tested in a real-life market downturn scenario,” ESG investment research firm Sustainable Market Strategies said in a report published last year. “Some might argue that when times get tough, asset managers tend to focus on their fiduciary duty and will want to avoid screening out stocks based on non-financial data.”
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