As we reflect on the first half of 2022, it is clear that the storm clouds have moved in over the ESG investment landscape. Performance challenges, a reversal on climate transition progress, and rising regulatory pressures have contributed to widespread ESG criticism, which has been amplified by the misuse and politicization of ESG by Wall Street and the media. Despite this skepticism, we believe that the commodity, capital market, and geopolitical shocks experienced this year have instead served to emphasize the importance of incorporating ESG factors in our fundamental fixed income credit research process. This month, we revisit the ESG trends outlined in our December outlook and provide perspective into what we might expect going forward.
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