Ann: Walyering development update, page-71

New YorkCNN Business — ESG investing — evaluating companies using environmental, social and governance factors — was one of the most-cited phrases in earnings calls during the first half of the year. But a looming recession, tanking stock markets and the race to US midterm elections have put those sustainability efforts on the chopping block.What’s happening: The rapid pandemic-era uptick in ESG fund investing has now stopped completely, according to Refinitiv analysis provided exclusively to CNN Business. ESG funds in September saw their largest outflow of investor cash since the March 2020 recession.These ESG and responsible investing funds saw assets under management peak above $8.5 trillion in late 2021. Now, they stand under $7 trillion, according to new data from Refinitiv Lipper provided exclusively to Before the Bell.The ESG world has been ravaged by ongoing debates about the merits of sustainable investing, the challenge of determining what counts as an ESG-friendly company and the evolution of global regulations. These headwinds, combined with a gloomy economic outlook, have created a less-than-appealing environment for ESG-related funds.Pushback from all sides: US politicians on both sides of the aisle and business leaders have accused companies of “greenwashing” their financial statements to make themselves look more environmentally friendly than they really are. Firms like asset manager DWS and Goldman Sachs have been accused recently of using the ESG label undeservedly.