LSEG index provider FTSE Russell says clients are asking whether exposure to high-return tech stocks should be cut as AI-driven growth raises ESG concerns—notably energy and water use—that could change the ESG standing of formerly benchmark companies. Lee Clements, head of sustainable investment research, said clients are querying whether hyperscale cloud providers’ climate footprints should automatically reduce their weights in sustainable indices. About $330bln of passive assets track FTSE Rus

LSEG index provider FTSE Russell says clients are asking whether exposure to high-return tech stocks should be cut as AI-driven growth raises ESG concerns—notably energy and water use—that could change the ESG standing of formerly benchmark companies. Lee Clements, head of sustainable investment research, said clients are querying whether hyperscale cloud providers’ climate footprints should automatically reduce their weights in sustainable indices. About $330bln of passive assets track FTSE Russell sustainable indices, with assets benchmarked to those indices likely substantially higher.