President Trump Drives Investors to ESG

Usage of ESG fund data has quadrupled among US Morningstar Direct users since Trump’s inauguration and performance of sustainably focused funds is promising

Jon Hale 9 August, 2017 | 2:46PM

Since the November election and January inauguration of Donald Trump, I have received a lot of questions about whether the new president will have a chilling effect on sustainable investing. The term refers to any investment approach that systematically includes environmental, social and corporate governance (ESG) criteria in the investment process and/or the consideration of ESG impacts on investors, stakeholders, the environment, society, economy and financial system.

To my knowledge, Trump has never mentioned sustainable investing, but if he has, I’d wager that the terms “hoax” or “fad” were involved. With the new administration trying to bring back coal, pulling the U.S. out of the Paris Agreement, and favouring broad deregulation of business, has sustainable investing now become a risky proposition?

Will companies that have been improving their sustainability profiles start abandoning their progress? Will the stocks of “bad” companies suddenly start outperforming, causing sustainable strategies to underperform?

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Jon Hale  Jon Hale is a consultant with Morningstar Institutional Investment Consulting.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites