ESG passive funds financing oil and gas expansion

Of 430 sustainable passive funds run by five major asset managers in Europe and the United States, 70% “were exposed to companies developing new fossil fuel projects”, a study shows. — Bloomberg

Paris: 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 says is incompatible with limiting global warming to the critical threshold of 1.5 degrees Celsius.

Of 430 sustainable passive funds run by five major asset managers in Europe and the United States, 70% “were exposed to companies developing new fossil fuel projects”, according to a fresh study published yesterday by Reclaim Finance.