Putting climate funds' growth in perspective
New analysis from the International Monetary Fund puts some helpful context around the surge in climate-focused investment funds.
The big picture: While climate funds are growing very fast, it's still a "small fraction" of the investment universe.
- At the end of last year, funds with a sustainability label were 7% of the overall sector at $3.6 trillion of assets, while "funds with a specific climate focus accounted for a meager $130 billion of that total."
Threat level: The analysis also calls for proper regulatory oversight to prevent greenwashing — that is, ensuring that labels "fairly represent funds’ investment objectives."
Go deeper: Read the analysis.