How long has sustainable investing been around?
In the 1960s and '70s, labor unions and civil rights activists started using sustainable investing as a force for social change, which led to the creation of the first sustainable investing fund in 1971. In the 1980s, the anti-apartheid movement championed “divestment” to influence corporate and government behavior.
The practice of ESG investing began in the 1960s as socially responsible investing, with investors excluding stocks or entire industries from their portfolios based on business activities such as tobacco production or involvement in the South African apartheid regime.
The core concept of ESG investing has existed for centuries, dating back to religious codes banning investments in slave labor. Fast-forwarding to the 1960s and 1970s, divestments from South Africa were first advocated to protest the country's system of apartheid.
Key milestones in the evolution of sustainable investing include the launch of the first socially responsible investment fund in 1971, the introduction of the first ESG index in 1990, and the establishment of the United Nations Principles for Responsible Investment (UNPRI) in 2006.
Impact investing has a much longer history than what many of us expect. The concept of impact investing is not new; the term was coined in the early 2000s, but the practice has been around for centuries.
SBI Magnum Equity ESG Fund, the oldest scheme in the category, offered 15.71% in a five year horizon. Around seven schemes have a performance record of three years.
BlackRock's decision to shift from ESG investing to transition investing marks a significant evolution in the sustainable investing landscape. This strategic move underscores the importance of actively supporting transitioning companies to drive accelerated change.
The term ESG first came to prominence in a 2004 report titled "Who Cares Wins", which was a joint initiative of financial institutions at the invitation of the United Nations (UN).
Exactly 90 years ago, the young Professor Adolf Berle, from the Business School of Columbia University, who today is considered the father of the ESG concept, saw major state-owned corporations as the most powerful entities capable of initiating social change.
ESG-focused institutional investment seen soaring 84% to US$33.9 trillion in 2026, making up 21.5% of assets under management: PwC report.
What is the difference between ESG and sustainable investing?
The key difference between ESG and sustainability is that ESG is a specific tool used to measure the performance of a company, while sustainability is a broad principle that encompasses a range of responsible business practices.
Globally, our research finds broad alignment across global markets that sustainable investing is a high priority for fund managers today and in 2030. Around the world, fund managers are convinced of the link between ESG and a company's shareholder value, and this link is a key input for investment decisions.
They have got more concerned about addressing social and governance issues as well. This increased awareness has led to a surge in sustainable investing, which is more commonly known to us as ESG investing. The term was first seen in a groundbreaking 2004 study "Who Cares Wins" by the United Nations Global Compact.
The origins of socially responsible investing (SRI) may date back to the Religious Society of Friends (Quakers). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade—buying and/or selling humans.
The global impact investing market is expected to grow at a compound annual growth rate of 18.8% from 2023 to 2030 to reach USD 253.95 billion by 2030.
History of faith-based investing
Investing based on your personal faith and values goes back hundreds of years. Methodists used to screen investments in alcohol, tobacco, and gambling companies, while Quakers created the Free Produce Movement in the 1800s to boycott goods made by slave labor.
In a line used by proponents, those in opposition to the ESG movement also believe there is substantial support behind them. “ESG investments are often opposed by conservatives who feel that ESG investments favor one political ideology and pressures companies to adopt 'woke' policies they don't support,” says Bruce.
Nobody “owns” ESG today, since responsibility for ESG spans the entire enterprise and no individual can make ESG happen on their own. While a leader can set a vision and strategy, only a cross-functional team can deliver it.
| Company | ESG Risk Rating | Industry Rank |
|---|---|---|
| Stellantis NV | 23.4 Medium | 34 out of 90 |
| Bayerische Motoren Werke AG | 24.8 Medium | 45 out of 90 |
| Tesla, Inc. | 25.3 Medium | 49 out of 90 |
| Toyota Motor Corp. | 29.3 Medium | 77 out of 90 |
BlackRock is the world's largest asset management company, not a secretive organization controlling the world. It manages trillions of dollars in assets for individuals and institutions worldwide.
What is BlackRock scandal?
Key Takeaways. BlackRock agreed to a $2.5 million fine for failing to properly disclose a fund's investments. The company's Multi-Sector Income Trust (BIT) inaccurately referred to Aviron Group as a 'diversified financial services company'. Aviron's owner was charged with defrauding $13.8M from the now-defunct firm.
Texas's public schools are pulling out billions of dollars that had been invested with asset manager BlackRock — a firm the state accused of boycotting fossil fuels.
One of the biggest criticisms of ESG is that it perpetuates what it was partly designed to stop – greenwashing.
- Environmental – this has to do with an organisation's impact on the planet.
- Social – this has to do with the impact an organisation has on people, including staff and customers and the community.
- Governance – this has to do with how an organisation is governed. Is it governed transparently?
Since ESG funds invest in companies that utilizes resources sustainably, is sympathetic to the well-being of its employees, stakeholders and society and is committed to clean governance, the potential risks are reduced.
