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Sustainable investing assets in the United States have plunged by more than half to US$8.4 trillion at the end of 2019, according to a new report from the US Forum for Sustainable and Responsible Investment (US SIF). trillion in total assets in 2019. Portfolios classified as responsible investments dropped to $3.0
I’m reminded of this debate amid the current turmoil over a greeninvestment label in Europe, a situation caused largely by the unwillingness of the sustainable investment sector to create its own industry standard.
BRUSSELS (AP) — The European Union on February 2 proposed including nuclear energy and natural gas in its plans for building a climate-friendly future, dividing member countries and drawing outcry from environmentalists as “greenwashing.” This anti-science plan represents the biggest greenwashing exercise of all time.
Meanwhile, most people – 79% overall and 90% of investors under age 45 – say they want to invest in socially and environmentally friendly ways. For instance, McDonald’s is one of the world’s largest beef purchasers, and it generated more greenhouse gas emissions in 2019 than entire countries.
A key amendment requires 100% of the proceeds to fund green projects, instead of 50-70% previously. This is a big step for foreign investors who are eager to invest in China’s domestic green bond market but have concerns about greenwashing—inadvertently buying ‘green’ bonds that, in fact, support non-green projects.
COP27 also saw the first fruits of UN Secretary General Antonio Guterres’ efforts to rid the finance and corporate sectors of greenwashing through increased scrutiny of net zero commitments. Adaptation has not yet hit its stride as an asset class and has fewer broadly accepted investment structures,” noted Convergence CEO Joan Larrea. .
Against this backdrop of net-zero commitments, investors, regulators and the media started paying more attention to the staggering growth in assets claimed to be invested under sustainable or responsible strategies. for example, assets defined as “sustainable” tripled between 2013 and 2019, from US$6.6 sustainable investment, to US$8.4
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