CAPITAL continued to flow out of environmental, social and governance (ESG) funds in South-east Asia, and into non-ESG funds, for a second consecutive quarter on the back of higher energy prices.

ESG funds domiciled in Singapore, Thailand, Malaysia and Indonesia recorded net outflows of US$66.2 million for the second quarter of this year, according to data from Morningstar. That extended an outflow of US$104.1 million in the previous quarter, and reversed net inflows of US$37.6 million from a year ago.