I’ve never understood ESG funds.

1) It’s hard to reliably turn ESG goals into fair (non-gameable) portfolio metrics to incentivize funds

2) LPs still want funds to make returns, so even if they define good metrics, they still want most of the incentive to be based on returns.

3) ESG companies don’t post better returns than those from other asset classes.

It makes more sense for LPs put their money into non-ESG funds and just set aside some amount to achieve ESG goals through a charity with established metrics. They’ll get a tax break to boot.