Investment funds that bet on public companies working to limit or adapt to climate change are poised to lose investors this year — potentially the first annual decrease in support on record for climate-focused funds, according to the financial research firm Morningstar Sustainalytics.
Between January and the end of September, the world’s nearly 1,600 mutual funds and exchange-traded funds with a climate focus experienced net financial outflows of $23.7 billion, Sustainalytics found in a report published last week.
The report attributed the capital flight to geopolitical uncertainty and concerns about high interest rates, which make it harder to bankroll emission-cutting projects.
Climate funds could see more investors pull their cash out before the end of the year in response to the victory of President-elect Donald Trump, who has promised to slash federal subsidies for renewable energy and other climate-friendly technologies.
