Those who invest their pension pots in funds that promote green credentials are now being warned that they could be backing some of the largest gas and oil companies in the world. A recent report from Carbon Tracker Initiative states that asset managers have pushed funds of £295 billion into gas and oil firms, despite pledging publicly to support efforts to reduce global temperature increases to 1.5 centigrade.
The not-for-profit think tank, headquartered in New York and London, uncovered that over 160 pension funds that had a green label held over £3 billion in 15 different companies including TotalEnergies, ExxonMobil and Chevron.
The think tank also discovered that 25 members of the established Net Zero Asset Managers (NZAM) initiative had also invested in these companies, with some increasing their holdings last year. In response, NZAM commented that its international initiative began two years ago and as a result, investors required time to alter their strategies.
The recent warning from Carbon Initiative Tracker comes at a time when the UK’s financial watchdog, the FCA, is preparing to publish its new anti-greenwashing rules that are specifically designed to clean up exactly how investment funds are being labelled for investors.
UK investors interested in ethical assets for their portfolio often look to wealth managers for green investment advice in Shropshire, Staffordshire and other counties. Wealth managers create investment portfolios that reflect their client’s position on environmental issues and carefully screen potential assets to determine the legitimacy of theirgreen credentials.
