Imagine you have money and want to invest it, but no ignorant climate killers in your portfolio. You find a fund called “carbon transition”.. all sorted, right? In practice, the fund management has no problem investing in expanding fossil energy companies such as TotalEnergies, Sumitomo, Hess, Equinor or Enbridge. No sign of a Paris-compliant “transition”! 🤔
A major financial investigation by Urgewald together with Facing Finance e.V. now shows: Fossil investments are alarmingly normal for so-called ESG funds! And the new transparency rules of the EU supervisory authority #ESMA - where it says “green” should be “green” - only help to a limited extent. Surprisingly, funds that advertise themselves as “transformation”/“transition” funds will still be allowed to invest in companies that are driving fossil fuel expansion business forward! 🤯
👉 https://www.urgewald.org/en/medien/esg-funds-greenwashing-eu
Climate-sensitive investors will be amazed at the large-scale fossil fuel exposure in ESG funds. Consumer protection is still not taken seriously enough in ESG investing in Europe. 🧐
Dear #EU, you can do better! The upcoming revision of the #SFDR Disclosure Regulation offers the opportunity to close fossil fuel loopholes in ESG funds and thus provide targeted support for an actual sustainable future! 🫶