Climate shocks could cut ‘polluting’ EU funds’ value by 20%

Esma researchers say carbon-intensive funds also pose more of a systemic risk

Funds in the European Union holding assets of high carbon-emitting companies could suffer losses of 20% or more if the economy were to suddenly shift to a climate-friendly model.

New research published by the European Securities and Markets Authority (Esma) studied the effects of a series of climate scenarios on almost 24,000 investment funds in the EU. System-wide, losses ranged from €500 billion ($599 billion) to €1.3 trillion, or between 6.8% and 19.4% of fund assets.

However, at the fund

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here