The sustainable investment industry is too small to drive a global transition to a low-carbon economy, and the government must work harder to protect investors from being fooled by greenwashing, the IMF said Monday. Said to.
The IMF states in its semi-annual Global Financial Stability Report that sustainable investment fund assets have doubled to approximately $ 3.6 trillion over the past four years. But achieving the goal of reducing global carbon emissions to net zero by the middle of this century will require large-scale new investments, estimated at up to $ 20 trillion by 2050, he said. .. Approximately 70% of this additional funding is expected to come from private sources.
To achieve this scale expansion, the IMF suggests that savers and investors need to have a good understanding of how their money is spent, making financial companies misleading about environmental certification. I urged regulators not to make any claims.
“Proper regulatory monitoring and verification mechanisms are essential to avoid greenwashing,” he said.
The IMF can accelerate the growth of sustainable funds by developing a new green framework that helps policy makers harmonize climate disclosure standards and support the flow of direct investment in projects such as renewable energy infrastructure. Said.
“The sustainable investment fund sector can be an important driver of the global transition to a green economy, but at this time it is too limited in size and scope to make a significant impact. , Promoting green investment is essential and urgent to facilitate the transition, “said the IMF.
The climate-oriented fund said it accounts for only $ 130 billion in assets in a sustainable investment strategy that employs a variety of environmental, social and governance indicators.
Tax cuts may also encourage retirement savings schemes and climate-themed funds for life insurance products purchased by retail investors, but only after improved reporting standards and regulatory oversight have been established.
The UK government will generate billions of pounds of new green investment after inviting BlackRock, Blackstone, Goldman Sachs and JP Morgan bosses to the summit ahead of the UN COP26 Climate Change Conference in Glasgow next month. I hope that.
Barclays boss Jes Staley, Lloyds Banking Group’s new CEO Charlie Nunn, Santander Chairman Ana Patricia Botin, Peter Harrison, asset manager Schroders boss, and GIC and Mubadara Sovereign wealth funds such as.
Working on greenwashing to boost sustainable investment, the IMF says
Source link Working on greenwashing to boost sustainable investment, the IMF says