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Asset Managers Face Crackdown on Passive Funds Over CO2 Claims

  • Funds told net-zero claims may be rejected over passive assets
  • Passive funds often dodge fossil-fuel exclusion policies
RF climate carbon emissions pollution HP

Source: Getty Images

Asset managers will no longer be able to exclude all passively invested funds when estimating their carbon footprint, if they want their emissions goals verified by the United Nations-backed Science Based Targets initiative.

SBTi, which already sets global standards for non-financial firms, is now working on an equivalent framework for the financial industry. The goal is to expose misleading net-zero emissions targets made by investment firms and banks.