Our Picks Struggle Along With the Market

THE KIPLINGER ESG 20 UPDATE | After a bullish 2021 for stocks with impressive ESG credentials, a pullback is under way.

- ADAM SHELL

MARKET VOLATILITY EARLY IN 2022 hasn’t dragged down only growth stocks and blue-chip names. It has also had a brownout effect on the Kiplinger ESG 20, our list of favorite stocks and funds that excel at meeting environmental, social and corporate governance standards.

Companies lauded for planet-friendly products, treating their workers well, and building diverse boards and management teams are not immune to headwinds such as rising interest rates, spiking inflation, supply chain disruptions, computer chip shortages and the uncertainties of war. But short-term hiccups for companies committed to long-term sustainability shouldn’t deter investors, says Peter Essele, head of portfolio management for Commonwealth Financial Network. “An ESG investing framework is well suited for the economy of the future,” he says.