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ESG flows drop as EU regulator warns of possible green bubble

Concerns over possible green asset overvaluation persist at Esma, as leading UK investment platform reports a drop off in ESG interest

The European Securities and Markets Authority warns of a possible green investments bubble
The European Securities and Markets Authority warns of a possible green investments bubble Photo: Malte Mueller/Getty Images

Hargreaves Lansdown, the UK’s largest investment platform, saw ESG flows drop for the first time since the beginning of the pandemic, as a leading EU regulator also said green assets might be due a correction.

The funds supermarket said on 15 February that flows to ESG funds were 115% lower in January compared to the same month last year amid market turbulence, with investors seeking out opportunities in other areas such as financial stocks.

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