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.
