United States: Tackle greenwashing to boost sustainable investment, says IMF

The sustainable investment industry is too small to drive the global transition to a low-carbon economy and to help it grow governments must do more to protect investors from being misled by greenwashing, the IMF said on Monday.

Assets in sustainable investment funds have doubled over the past four years to about $3.6tn, the IMF noted in its semi-annual Global Financial Stability Report. But massive new investments estimated at up to $20tn will be required by 2050 to achieve the goal of reducing worldwide carbon emissions to net-zero by the middle of this century, it said. About 70 percent of this additional funding is expected to come from private sources.

Achieving this scale of expansion will demand that savers and investors properly understand how their money is used, the IMF suggested, calling on regulators to prevent financial companies from making misleading claims concerning their environmental credentials.

The original article can be found at ft.com

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top