DIIS Working Paper
Most green funds do not have a sustainability impact
The transmission mechanisms of shareholder engagement and capital allocation are not used effectively by ESG funds
ESG funds are growing rapidly. However, their impact on climate change mitigation and sustainability remains unclear.
Recent research on the transmission mechanisms from sustainable finance to the real economy has identified key shortcomings that need to be addressed in order to reduce greenwashing and make these funds truly green.
Related content
Mind the ESG gaps
transmission mechanisms and the governance of and by sustainable finance
