Global ESG Fund Flows in Q1/2025

Morningstar Sustainalytics analysts attribute the outflows to geopolitical events and ESG scepticism and backlash in the United States and selective other countries. Outflows in the U.S. continued and Europe also saw outflows the first time since 2018. Investors based in the U.S. pulled $6,1 billion out of ESG and sustainable funds. In Europe the total withdrawals were lower at $1,2 billion vs. inflows of $20,4 billion in 2024. The statistics represent open-ended funds and ETFs with a focus on impact, sustainability or ESG factors. Investors need to review classification systems and fund categories to assess overall fund flows. Reclassifications can also play a role and influence fund flow numbers. 

More details can be found in the full report which can be downloaded on the original source page on a Morningstar Sustainalytics website. More reports in the Reports section.