Investors call for exclusion of fossil gas

According to an investor group with combined assets worth €50 trillion, Europe’s sustainable investment list should exclude fossil gas. Additionally, the group commented that it was currently considering whether or not it would accept nuclear energy in the sustainable investment class.

The Institutional Investors Group on Climate Change (IIGCC) is a coalition of asset managers and pension funds with considerable power. Through an open letter, the group warned that the action of awarding fossil gas a sustainable investment label risks capital being funnelled to activities that do not match Europe’s current climate ambitions.

Europe’s taxonomy was developed to provide investors with a guide for sustainable technologies to stop greenwashing. An example of greenwashing is circumstances where enterprises claim to spend funds on green activities, but these are either damaging to the environment or simply ineffective.

However, the most recent list issued of sustainable investments viewed by EURACTIV is being criticised widely for its inclusion of gas and nuclear projects, which many environmentalists believe undermines the legislation’s climate ambition.

UK consumers seeking ethical investment advice in Chester, Birmingham and other cities can sometimes look to wealth managers for support. Able to construct and manage portfolios for clients, wealth management teams select assets that suit their clients stance on social, governance and environmental investing and select appropriate assets to include.

The European Commission has extended the deadline for decision making deadline to afford experts an opportunity to feedback on natural gas and nuclear within the taxonomy.

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