
Methodology
This ranking identifies the worst ESG (Environmental, Social, Governance) investment failures globally, based on:
- Greenwashing or deceptive ESG claims
- Financial collapse of ESG-labeled companies or funds
- Scandals contradicting ESG principles (pollution, labor abuse, corruption)
- Misleading ESG ratings for unethical firms
- Failure of green bonds and ESG-labeled portfolios
1–10: Catastrophes in Plain Sight
- Wirecard AG (Germany) – €1.9B fraud collapsed while held by major ESG funds.
- Orpea Group (France) – Elder care giant exposed for abuse and corruption.
- Boohoo Group (UK) – ESG-labeled fashion brand used exploitative labor.
- Volkswagen AG (Germany) – ESG upgrades post-dieselgate scandal.
- Adani Group (India) – ESG darling accused of stock fraud, pollution.
- Tesla Inc. (USA) – Dropped from ESG indices over governance issues.
- Vale S.A. (Brazil) – Deadly dam collapse, still rated as ESG-compliant.
- Glencore (Switzerland/UK) – ESG-rated despite bribery and pollution scandals.
- Enron (USA) – Early example of greenwashing and massive fraud.
- Xinjiang Solar Firms (China) – Linked to forced labor, held in ESG funds.
11–20: ESG Icons Turned Toxic
- WeWork (USA) – ESG pitch failed as governance and viability collapsed.
- Fisker Inc. (USA) – EV firm collapsed despite green investor hype.
- First Republic Bank (USA) – Marketed as sustainable lender, failed in 2023.
- Nikola Motors (USA) – ESG-touted EV firm exposed for fake tech demos.
- DWS (Germany) – Deutsche Bank’s fund accused of ESG mislabeling.
- Steinhoff International (South Africa/Germany) – Governance meltdown.
- Pacific Gas & Electric (USA) – ESG score high even after wildfires and deaths.
- Evergrande Group (China) – ESG-labeled by some despite reckless growth.
- Samsø Municipality (Denmark) – ESG poster child with hidden accounting issues.
- Rio Tinto (Australia/UK) – ESG-favored despite destroying sacred sites.
21–30: Funds in Flames
- Aberdeen Standard Global Sustainable Fund – ESG label, oil-heavy holdings.
- H20 Allegro Fund – Green-washed, exposed to toxic debt and collapse.
- Norwegian Government Pension Fund – ESG-labeled yet invested in arms and fossil fuel.
- UBS Sustainable Development Bank Bonds – Used for non-green projects.
- BlackRock ESG Aware ETFs – Included oil majors and mining firms.
- HSBC ESG Bond Fund – Accused of greenwashing by regulators.
- BNP Paribas ESG Euro Corporate Bond Fund – Held polluters and tobacco.
- Amundi Responsible Investing Funds – Lacked transparency, misleading holdings.
- iShares MSCI ESG Leaders ETF – Included Facebook, Amazon, ExxonMobil.
- Goldman Sachs ESG Emerging Markets Fund – Held multiple environmental offenders.
31–40: Public Sector ESG Fiascos
- Green Energy Scheme (UK) – Northern Ireland heat incentive ended in scandal.
- GFG Alliance (UK/Australia) – ESG steelmaker tied to Greensill fraud collapse.
- South African Eskom Green Bonds – Green bonds used to finance coal-heavy grid.
- Bulgarian Green Energy Subsidies – Misused funds for mafia-tied wind projects.
- California Bullet Train (USA) – ESG-labeled, but ballooning costs and delays.
- SNCF Green Bonds (France) – Used for diesel trains and debt repayment.
- Malaysia 1MDB Green Tranche – ESG-claimed bonds linked to massive fraud.
- Portugal Novo Banco ESG Loans – Labeled green, used to roll over bad debt.
- Italian Wind Energy Mafia Scandal – ESG subsidies linked to organized crime.
- EU Green Taxonomy Loopholes – Included gas and nuclear under green labels.
41–50: Corporate Contradictions
- Nestlé (Switzerland) – ESG-rated despite water grabs and child labor scandals.
- Chevron (USA) – Included in ESG indexes despite legacy pollution.
- Facebook/Meta (USA) – High ESG scores despite privacy and social harm issues.
- Shell (UK/Netherlands) – Rebranded green while expanding fossil production.
- TotalEnergies (France) – ESG investment magnet, tied to autocratic regimes.
- Amazon (USA) – ESG favorite, yet known for poor worker treatment.
- McDonald’s (USA) – ESG-labeled despite industrial farming and labor disputes.
- JBS (Brazil) – Meat giant with deforestation and corruption ties.
- Gold Fields Ltd (South Africa) – ESG-rated, linked to land grabs.
- BP (UK) – Continues to receive ESG investment despite deepwater disasters.
51–60: Green Bond Busts
- Mexico’s Pemex Green Bonds – Issued for ESG, used for fossil fuel operations.
- Japan Rail ESG Bonds – Lacked real sustainability metrics.
- Dubai Sustainable Bonds – Questionable oversight, used for luxury projects.
- India State Bank Green Loans – Disbursed to polluting firms.
- China’s Belt and Road Green Finance – ESG in name, coal in action.
- Brazilian Amazon ESG Credit Scheme – Money diverted, no protection delivered.
- Turkey Green Sukuk Bonds – Labeled green, used for non-transparent infrastructure.
- Ukraine Sovereign ESG Bonds – ESG branding, funds used for war support.
- South Korea’s K-Green Bonds – Mixed record, little monitoring.
- Nigeria ESG Infrastructure Bonds – Projects stalled or non-existent.
61–70: Institutional Failures
- MSCI ESG Ratings (Global) – Accused of inflating scores for big tech and oil.
- S&P Global ESG Ratings – Tesla exclusion stirred debate over integrity.
- Morningstar Sustainalytics – Criticized for inconsistent ESG scoring.
- ISS ESG Ratings – Used outdated data, missed major scandals.
- CDP Climate Ratings – Lacked transparency, allowed self-reporting abuse.
- FTSE4Good Index – Included controversial firms with ESG labels.
- Bloomberg ESG Indexes – Questioned over oil-heavy listings.
- RobecoSAM Ratings – Delayed responses to company collapses.
- Refinitiv ESG Scores – Inconsistent standards, poor exclusions.
- Moody’s ESG Solutions – Accused of greenwashing through scoring.
71–80: Financial Institutions Under Fire
- Credit Suisse ESG Portfolios – Imploded after Greensill and Archegos scandals.
- Deutsche Bank ESG Funds – Fined for overstating ESG credentials.
- JP Morgan ESG Investment Trusts – Included deforestation-linked firms.
- Wells Fargo Sustainable Finance – Green-labeled while facing governance issues.
- UBS Climate-Aware Fund – Held major polluters.
- Citigroup ESG Bonds – Used to back carbon-intensive projects.
- Morgan Stanley Impact Funds – Light on impact, heavy on tech giants.
- Barclays ESG Portfolios – Held fossil energy and arms firms.
- State Street ESG Funds – Lack of meaningful exclusion filters.
- Vanguard ESG Funds – Accused of passive greenwashing.
81–90: Collapse & Consequence
- EcoWorld Development (Malaysia) – ESG real estate firm in financial trouble.
- Hydro-Québec ESG Debacle (Canada) – ESG-tied dam flooded Indigenous lands.
- Sri Lanka Green Projects – ESG loans worsened debt crisis.
- Thai Energy Storage Scandal – Fake ESG battery firm collapsed.
- Eskom Renewable Projects (South Africa) – Non-functional projects, mass blackouts.
- Philippines ESG Agro Bonds – Funded deforestation-linked agribusiness.
- Greece Renewable Energy Fraud – Fake wind farms collected ESG subsidies.
- Bangladesh ESG Textile Financing – Worker exploitation persisted.
- Vietnam ESG Funds – Mixed ethics, poor due diligence.
- Peru Amazon ESG Ventures – Little environmental benefit delivered.
91–100: Honorable Mentions in Failure
- Repsol (Spain) – ESG-rated despite continued oil expansion.
- ING ESG Loans (Netherlands) – Weak criteria, low monitoring.
- Danone (France) – Green-labeled, plagued by plastic waste issues.
- Heineken (Netherlands) – ESG high scores despite exploitation claims.
- Royal Bank of Canada ESG Portfolios – Green-labeled fossil holdings.
- Société Générale Sustainable Bonds (France) – Lack of traceable use.
- Australian ESG Timber Scandal – Fake carbon offsets exposed.
- Luxembourg ESG Real Estate Fund – Labeled sustainable, collapsed.
- Bawag ESG Real Estate Fund (Austria) – Collapsed, falsely branded ESG.
- BASF (Germany) – ESG funds hold it despite chemical pollution legacy.
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