Tiny 7% of sample 31,000 equity funds have more than 10% 'green revenue'

Only 3.6% of global revenues considered ‘green’

Only a small fraction of revenues from funds that are often classified as green contribute to mitigating climate change, a new study has found, which raises concerns about investors being misled by supposedly ‘green’ funds.

Sustainable tech provider Clarity AI analysed 31,000 equity funds, which are often branded as in some way ‘green', on how they perform against the new EU Taxonomy requirements. The study found that just 7% of the funds analysed have more than 10% green revenues, as defined in the EU taxonomy, meaning they contribute to mitigating climate change. Globally, it found just 3.6% of revenues can be considered green. MainStreet report reveals 70% of funds not sustainable Under the Sustainability Finance Disclosure Regulation, asset managers need to report the EU Taxonomy alignment as part...