Oct 6, 2021 - Economy

Putting climate funds' growth in perspective

Assets under management, by fund type
Data: IMF; Chart: Will Chase/Axios

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.

Go deeper