Most Passive Funds Labeled ESG Finance New Oil, Gas Fields
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More than two-thirds of passive funds marketed as sustainable are helping finance growth in the fossil-fuel industry, a trajectory that the International Energy Agency has said is incompatible with limiting global warming to the critical threshold of 1.5C.
Of 430 sustainable passive funds run by five major asset managers in Europe and the US, 70% “were exposed to companies developing new fossil-fuel projects,” according to a fresh study published on Wednesday by Reclaim Finance.