Passive funds will struggle to achieve net zero carbon emissions across their portfolios, according to the chief executive of one of Japan’s largest asset managers.
Akira Sugano, president and CEO of Asset Management One, said passive funds would “of course” find it more difficult to reach net zero targets than active managers.
Policymakers and regulators have upped pressure on asset managers in recent years to channel their investments into companies that do not harm the environment. The COP26 climate summit at the beginning of November saw a number of initiatives being announced to reduce carbon emissions in portfolios.
This article was originally posted on ft.com