"ESGB is heavily allocated to the U.S. government, which is appealing from the standpoint of the fund potentially offering an upside when Treasury yields decline. Additionally, the ESG bond ETF could be useful for income investors that are looking to eschew risk. The $253.5 million ESGB is also useful because data confirm the negative consequences of adverse ESG circumstances on issuers’ credit ratings."

Link: https://www.etftrends.com/dual-impact-channel/why-esg-is-meaningful-with-fixed-income-etfs/