ESG Stampede Reduces Financing for Carbon-Intensive Companies

The flip side of the stampede into sustainable investments in recent years is that companies with the greatest need to decarbonize are increasingly starved of funding.

Lack of finance is the biggest impediment to pivoting the global economy to net-zero emissions, according to a report from Standard Chartered Plc based on a survey of 250 corporate executives and 100 investors and analysts. The study found although almost 90% of investors say the world won’t reach net zero by 2050 without investment firms financing the transition, 70% of senior business executives say investors are reducing their exposure to carbon-intensive assets, making it harder for them to shift to low-carbon business models.