For Andy Sloan, the ‘ESG bubble’ is a comfort blanket for the financial sector during stressed times. “It’s become a beacon of hope that things will get better,” says the Deputy Chief Executive at Guernsey Finance, who is driving the Channel island’s green finance agenda.
“We’ve all taken ourselves on the ESG bandwagon while Covid is going on and we’ve lost our ability to do a lot of the critical analysis along the way. And if you do that analysis, you become a naysayer. We need to keep grounded - it’s gone too far.”
Media and financial analysts have been awash with talk of an ESG bubble in recent months, as huge flows of capital continue to pour into ESG-labeled funds - $326bn in 2020, according to Morningstar data, which is more than double the $154bn the previous year.
Last month, Norges Bank Investment Management’s new CEO, Nicolai Tangen, joined the chorus of names worried about an ESG bubble, after the fund struggled to find investm…