"Ethical" or "sustainable" investment strategies, called "Environmental, Social, Governance" (ESG) investing have enjoyed increasing popularity, with record inflows during the pandemic. Governments around the world are increasingly looking to "ESG" strategies and leveraging ‘sustainable’ private finance to drive the transition to a decarbonised economy. However, there are several reasons to be sceptical of the ability of "sustainable finance" to deliver.

This report interrogates ESG, focusing particularly on ‘sustainable’ investing, and asking two key questions:

[.num-list][.num-list-num]1[.num-list-num][.num-list-text]Does "sustainable investing" deliver on its promise, namely shifting finance from unsustainable to green investments and driving commensurate change in the activities of the real economy?[.num-list-text][.num-list]

[.num-list][.num-list-num]2[.num-list-num][.num-list-text]Is relying on private finance to confront the climate crisis an appropriate path if it risks exacerbating key dynamics underlying climate crisis and injustice, namely inequalities in wealth and economic power?[.num-list-text][.num-list]