A study of the portfolios of the world’s top 45 asset managers, including giants Blackrock and Vanguard, which have $72 trillion under management, indicates that they are not doing enough to attain the target of climate neutrality in 2050.
InfluenceMap research program FinanceMap found that 95 percent were misaligned with the scenario to achieve carbon neutrality by 2050, as established by the International Energy Agency.
“Across the board, the world’s largest asset managers’ equity funds invest in companies misaligned with zero net goals,” the report said.
Overall, the value of investments in fossil fuel companies was 2.8 times greater than in green investments as defined by European criteria.
The report found “a significant gap between the increase in net-zero commitments by the world’s largest asset managers and their lack of meaningful short-term climate action.” Overall, it found that asset managers had not made significant progress on attaining their climate goals since 2021, despite an increase in targets through industry initiatives such as Net Zero Asset Managers.
Part of that was due to a backlash against climate-aligned investment in the United States, where some state legislators seek to limit the investors’ use of Environmental, Social, and Governance factors and the phase out of fossil fuel investments.
If we follow the money, then it is becoming apparent just how committed major players are to the goal of climate neutrality.
The question becomes: How do we make them follow their conscience and do what is right for the planet and its present and future inhabitants, instead of always following the money?*
