It also proposed the development of “a pathway for discerning and regulating the impact of these funds on the real economy and on actual emissions reductions, particularly as several pieces of research cited in this report indicate real world impact is a key motivator for investors in climate and ESG funds”. The large number of climate-themed funds that unwittingly hold stakes in fossil fuel companies has highlighted the inadequacy of the industry's environmental, social and corporate governance (ESG) oversight. A recent report by Oxfam found that more than half a billion dollars from around the world have been invested into fossil-fuelled companies, with many of these investments coming directly or indirectly through pension funds.
The large number of climate-themed funds that unwittingly hold stakes in fossil fuel companies has highlighted the inadequacy of the industry's environmental, social and corporate governance (ESG) oversight. A recent report by Oxfam found that more than half a billion dollars from around the world have been invested into fossil-fuelled companies, with many of these investments coming directly or indirectly through pension funds.