BlackRock Inc. has seen a decline in its European ESG funds, with client withdrawals surpassing new investments for the first time in over three and a half years.
This trend reflects a broader shift away from passive investment strategies among investors, as indicated by Morningstar's data covering 14 quarters since Europe implemented strict regulations on environmental, social, and governance disclosures.
The change in investor sentiment raises concerns about the future of ESG investing in the region.