Thinking of Investing in a Green Fund? Many Don't Live Up to Their Promises, a New Report Claims
The number of green investment funds is skyrocketing, but many are investing in companies that aren’t aligned with the goals of the Paris Agreement. That’s according to a report published on Aug. 27 by InfluenceMap. The London-based climate change think tank accused the majority of green funds of falling short.
InfluenceMap assessed 723 equity funds—with over $330 billion in total net assets—marketed using environmental, social and governance (ESG) claims and climate-related key words.
It concluded that more than half of the climate-themed funds, which describe themselves with phrases like “low carbon,” “energy transition,” and “clean energy,” fall short of the vision laid out in the Paris treaty. Adopted in 2015, the pact calls on countries to do their best to reduce emissions to keep global temperatures to less than 2°C above pre-industrial levels—and preferably no more than 1.5°C—in the hopes of avoiding the worst consequences of climate change.
Read more at Time Magazine.