Concern about climate change is the most common reason for financial groups to exclude companies from their portfolios, according to research that underlines how the phenomenon continues to affect investment decisions despite a pushback against “woke” capitalism. 

The findings, from a coalition of non-profit environmental and sustainability groups, show that 40 per cent of exclusions are motivated by concern over climate change. Some 17 per cent of exclusions are driven by worries about companies involved in weapons manufacturing, with tobacco accounting for 12 per cent. 

The research indicates that financial groups continue to factor ESG — environmental, social and governance — questions into decisions, even as Republican politicians and state treasurers in the US lead a backlash against what they call “woke” capitalism, arguing it is not up to the financial industry to police companies.