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Advocates claim that sustainability can enhance financial returns. For instance, Al Gore has championed sustainable investments, asserting that integrating sustainability into investment strategies can yield long-term gains. However, the reality paints a different picture—many so-called sustainable funds have significantly underperformed relative to the overall market.

The Reality of Sustainable Investing

Over the past few years, the touted advantages of ESG investing have come under scrutiny. The alarming truth is that many sustainable funds have lagged behind traditional investments, resulting in disillusionment among investors. Compounding the issue, some funds openly admitted to making investment mistakes while deflecting blame onto market conditions.