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More action needed from Climate Action
Not-for-profit Majority Action has monitored votes of signatories to the Climate Action 100+, the investor initiative representing $60tn in assets under management where members commit to ensure the world’s worst polluters take the necessary actions on climate change. The reality is somewhat far from this, according to the report, with Climate Action investors supporting company directors even when their organisations failed to comply with disclosure requirements.
ESG equity inflows continue despite ‘dirty stock’ resurgence
Almost all types of environmental, social and governance-themed funds experienced positive flows in 2021, Refinitiv Lipper has found, despite ESG funds’ growth-oriented performance being dented by a resurgence of ‘value’ oil and gas stocks.
“It’s likely that much of this is to do with the growth bias of many ESG funds in an environment where value has rebounded after a good many years in the doldrums. As inflation digs its claws in, this may continue,” writes head of UK and Ireland research Dewi John.
The paper finds that there is not yet evidence of a green bubble, since inflows still do not match the financing needs of global net zero targets, but with lumpy supply some asset classes and themes could become “frothy”.