Short selling could cut up to $140bn of investment from heavily polluting firms

Managed Funds Association report

clock • 1 min read
 The association argued that shorting high-emitting public companies could hedge against the portfolio risks associated with the climate transition.
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The association argued that shorting high-emitting public companies could hedge against the portfolio risks associated with the climate transition.

Short selling could help reallocate between $50bn to $140bn of capital away from the most heavily polluting companies, a report by the Managed Funds Association (MFA) has found.

In a report published yesterday (14 June), the MFA said short-selling has the potential to reduce capital investment in the most emissions-heavy publicly traded companies by 3 to 8%. This equates to 19% of the total capital ($755bn) invested in green energy sources in 2021, spanning renewable energy, energy storage, electrified transport, electrified heat, nuclear, hydrogen and sustainable materials. The association, which represents the alternative asset management industry, argued that shorting high-emitting public companies could hedge against the portfolio risks associated with th...

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