InfluenceMap | Climate Funds: Are They Paris Aligned?

The last few years has seen huge growth in ESG and climate-themed financial products on global markets, with the funds offered growing to a total value of $1.7 trillion in 2020. In parallel, regulators have become increasingly concerned about the quality, consistency, and transparency of available products in this category. This research assesses 723 equity funds specifically marketed using ESG- and climate-related key words, with over US$330 billion in total net assets. It does so on the basis of two climate criteria (portfolio Paris Agreement alignment and fossil fuel intensity) likely to be of primary interest to investors in funds marketed in this manner.