Driven by consumer demand, compulsory super and strict greenwashing regulations, Australia's record on ethical investment is well regarded.
Or at least it was.
Amid concerns over performance and a US-led anti-woke backlash, the nation's appetite for putting hard-earned savings into companies with a conscience has fallen off a cliff.
Driven mostly by younger investors, support for funds dedicated to strong environmental, social and governance, or ESG, frameworks was riding high until 2021.
Now, the sector is suffering green fatigue.
Trading has dropped 60 to 70 per cent, according to an examination of the 250 most-traded instruments on popular investment-tracking platform Sharesight.
"What we've found with ESG, in particular, is just a real drop in enthusiasm for the asset class," says Douglas Morris, chief executive of the Sydney and Wellington-based company.
