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New research from Barclays shows that clients have withdrawn a net $40bn from ESG equity funds this year. Investors around the globe are increasingly turning their backs on sustainability-focused funds as poor performance and scandals have impacted investor enthusiasm. The Financial Times covers the story.

Further ESG fund outflows are expected across Europe. Morningstar Sustainalytics predicts that new rules limiting how freely asset managers can attach the ESG label to funds will trigger a widespread ‘purge’ across the industry. The rules are the latest move by regulators in attempts to crack down on misleading claims within the ESG investing space. Bloomberg covers the story.

The ECB is set to fine several banks over their failure to deal with the potential fallout from climate change. The news comes as the ECB begins to push banks to prepare for future risks, including losses as a result of extreme weather, or polluting companies going out of business. Bloomberg covers the story.