Oh no, ESG got an inflation problem..

And we are not talking inflows. Sanford Bernstein explains: "Inflation is rising and there is scope for it to rise further, both tactically and on a longer horizon. This is a big problem for ESG funds, particularly those in Europe who are most heavily underweight short duration and Value sectors". Who should better positioned in this context: 1) High scoring ESG stocks which are positively exposed to rising bond yields, 2) High scoring ESG stocks which have strong pricing power and 3) Increasing exposure to the Energy, Commodities and Financial sectors..