ANALYSIS-UN Climate Report Increases Urgency for Green Investment Funds
by Ross Kerber (Reuters/NASDAQ) Dire warnings about climate change are a call to action for investors who put their money into helping the environment. But the news also heightens a debate about how to make these strategies effective, financial executives said.
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But sustainable investment managers are confronting a two-sided challenge for ESG, or environmental, social and governance, funds.
Fund managers want to convert public enthusiasm into dollars invested while simultaneously allaying suspicions that some funds are “greenwashed” as skeptics claim.
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Globally, sustainable funds hit a record high of $2.24 trillion in assets in the second quarter, Morningstar data showed, up 12% from the end of March.
Many of these funds choose their investments in part on ratings of portfolio companies’ sustainability assigned by outside firms, but these grades can diverge widely.
An association of global market regulators took the first step last month towards governing the ratings.
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One of the biggest questions is whether to invest in fossil fuels at all. READ MORE
AR6 Climate Change 2021: The Physical Science Basis (Intergovernmental Panel on Climate Change)
Excerpt from Intergovernmental Panel on Climate Change: The Working Group I contribution to the Sixth Assessment Report addresses the most up-to-date physical understanding of the climate system and climate change, bringing together the latest advances in climate science, and combining multiple lines of evidence from paleoclimate, observations, process understanding, and global and regional climate simulations. READ MORE