Thread by @adribuller, Attn finance nerds: did a lil report interrogating 'sustainable investing' and why [...]

Adrienne Buller

adribuller

Attn finance nerds: did a lil report interrogating 'sustainable investing' and why green finance can't possibly deliver on the hype for @Cmmonwealth

Here comes a

https://www.ft.com/content/cd819461-1925-48e0-86af-e81a56c0d3f8

Third of low-carbon funds invest in oil and gas stocks

Analysis highlights potential mismatch between investor expectations of green funds and reality

https://www.ft.com/content/cd819461-1925-48e0-86af-e81a56c0d3f8

There's *huge* consolidation in asset management, and 'ethical investing' isn't spared from this - BlackRock controls a full quarter of the UK's clean fund market (a massive jump over even last year).

If we care about a democratic transition, this concentration of power =

'Green finance' also has a dubious (at best) relationship to decarbonisation. I found 1/3 low carbon funds with oil & gas stocks, including Exxon (lol).

More broadly, the 'climate fund' cottage industry really boils down to a whole lot of Facebook, Amazon & other financial firms

But beyond the fact that 'green' financial products are often far from it (see prev.), there much are deeper underlying issues with a private finance-led approach.

Namely: inequalities of wealth & economic power --> climate and ecological breakdown. https://www.common-wealth.co.uk/reports/doing-well-by-doing-good-examining-the-rise-of-environmental-social-governance-esg-investing

'Doing Well by Doing Good’? Examining the rise of Environmental, Social, Governance (ESG) Investing

Climate-themed funds are failing to deliver on their green credentials.

https://www.common-wealth.co.uk/reports/doing-well-by-doing-good-examining-the-rise-of-environmental-social-governance-esg-investing

So 'doing well by doing good' comes up against the fact that any approach to the climate & nature crises not centred on radically reducing inequality is not only unjust, but doomed. Simply letting private investors bet on a green transition ain't it. fin https://www.nature.com/articles/s41467-020-16941-y

Scientists’ warning on affluence

Current environmental impact mitigation neglects over-consumption from affluent citizens as a primary driver. The authors highlight the role of bottom-up movements to overcome structural economic...

https://www.nature.com/articles/s41467-020-16941-y

W/huge thanks to @fichtner_jan @JesseLGriffiths @katie_kedward @youellog @greenfinanceobs for their input and comments & @DanielaGabor @BJMbraun for general intellectual inspiration

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