AMWatch

Research: climate-focused funds are guilty of greenwashing

ETFs tracking climate change indices invest very little in green companies but increase allocation to those with poor environmental records, academic research finds.

Photo: Ørsted

Climate-focused ETFs routinely engage in greenwashing and starve sectors important to a green transition of capital, FT writes, referring to a research paper by French business school and think tank Edhec.

Exchange traded funds tracking so-called low carbon and Paris Aligned benchmarks for example, allocate little money to the greenest companies. Instead, they constantly increase their allocation to those firms whose environmental performance is deteriorating, the research paper titled Doing Good or Feeling Good? Detecting Greenwashing in Climate Investing claims, according to FT.

Read the whole article

Get 14 days free access.
No credit card required.

An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Why do Nordic funds have so few female portfolio managers?

Only 16 percent of fund managers in Sweden are women. The figure is 11 percent in Finland, while just 6 percent of fund managers in Denmark and Norway are female. AMWatch has talked to four Nordic women in finance in search of answers regarding this imbalance and to hear about their career experiences. 

Further reading

Related articles

Trial banner

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch