ESG Shifting Tides

The ESG framework, once a dominant feature of corporate governance and sustainable finance, is experiencing a measurable retreat across two dimensions: corporate disclosures and capital markets. DragonGC analysis reveals that "sustainability" mentions in S&P 500 proxy filings showed steady growth from 2010 to 2024, then declined in 2025, with early 2026 filings showing an accelerating drop. At the same time, ESG-designated funds recorded a net outflow of $935 million in January 2026, marking the fourteenth consecutive month of negative flows, while 100 ESG funds have closed since January 2025.

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