In the three days since Donald Trump’s victory in the US election was announced, the stock market index of the top 100 renewable companies – the S&P Global Clean Energy Index – has fallen by almost 6%. The future president is openly anti-ESGwhich could harm to some extent green listed companies, which have received so much support from Joe Biden through his Inflation Reduction Act (GO).
In fact, renewable energy companies have been underperforming on the stock market all year (largely due to a scenario of higher rates for longer). Over the entire year, the aforementioned index fell by 20% (virtually the same as the rise in the MSCI World stock index).
This to move back The importance of green investments in the stock market is also reflected in monetary flows. According to Morningstar data, Until mid-October, more funds have been released Green (those classified as section 9 according to the European Disclosure Regulation) 14 billion euros. In the section 8 (which are ESG funds, less demanding than the previous ones) the money came in: concretely, 94 billion euros. These two data contrast radically with the 185 billion euros captured by unsustainable funds. All these figures relate to funds on sale in the EU. Since this historic data series began in 2021, photography has no longer been as overtly supportive of backgrounds not sustainable. ESMA “expels” oil companies in which 15 billion were invested from sustainable funds.
The current anti-ESG in the United States – which can now, as we say, be strengthened with Trump in charge – and fatigue with regulatory excesses in Europe mean that even some fund managers are giving up their shares pro sustainability (the so-called green silence or green silence). Nevertheless, the experts consulted by elEconomista.es agree on the fact that, even if in the short term the election of Trump penalizes certain companies, the underlying trend is solid because it is profitable: “In the short term, we can see a reaction in the market in many companies, but in the long term there are very strong demand factors to continue investing in renewables, nuclear and networks”, says Natalia Luna, analyst senior Columbia Threadneedle Thematic Investment Fund. What will happen to ESG investing if Donald Trump wins the election?
Even if the funds section 9 They will only increase on average by 6.7% in 2024, while we are witnessing stock market indices at their highest and double-digit increases in the stock markets, with certain vehicles actually achieving significant returns. They highlight the East Capital Global EM Sustainable A EURwhich revalued by more than 22%, as well as the Robeco QI US Climate Beta Eqs D € Capwith an increase of 21%, as well as two products from Sycamore and one more from Candriam (see table).
