IW Long Reads: Does low carbon mean high returns? How investors can stoke the fires of decarbonisation

IW Long Reads: Does low carbon mean high returns? How investors can stoke the fires of decarbonisation

No room for market complacency despite growing inflows towards greener funds

Anna Fedorova
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Last year, investment strategies with an underweight to carbon-intensive industries such as oil and gas outperformed their benchmarks. However, many have pointed out that 2020 was an unprecedented year, as the global pandemic dramatically reduced demand for oil, and have warned that we may well see a reversal in fortunes for ESG-focused funds as the world returns to normal. Yet the growing commitment to net zero targets on both a national and company level suggests otherwise, highlighting the risk of investing in assets that could become 'stranded'. Vicky Lay, sector manager, finance...

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