European Research Shows Strength of Green Investment Funds
by : Chris Bolt |
Published: March 24, 2021
New research made by the European equivalent of the SEC has concluded that green funds would actually do far better in a climate-related stock market shock.
The investment world has been arguing about the pros and cons of green investment funds for a long time. But in many cases, investment analysts have concluded that green funds have lower returns, and their environmental benefits provide a value that is more difficult to value.
However, new research made by the European equivalent of the SEC has concluded that green funds would actually do far better in a climate-related stock market shock.
And some details provided by a report from Investing.com have shown how extensive this research was.
“The European Securities and Markets Authority (ESMA) published what it described as a first attempt to assess vulnerabilities to climate-related financial risks using data from 23,965 EU-based funds worth 10.7 trillion euros ($12.7 trillion).”
The analysis showed that in a severe market shock, there was a considerable difference in losses. Green funds showed a loss between 3% and 7%, while brown or dirty funds could lose between 8% and 19%.
That means that there is now a tangible value in clean funds as they provide a lot of downside protection.
Chris is one of GreenCitizen’s writers who has been a long-time advocate of individual responsibility when it comes to the environment. He shares GreenCitizen's passion for making the world a better place every day of the year.
Business & Policies , Sustainable Living ,
European Research Shows Strength of Green Investment Funds
by : Chris Bolt | Published: March 24, 2021
New research made by the European equivalent of the SEC has concluded that green funds would actually do far better in a climate-related stock market shock.
The investment world has been arguing about the pros and cons of green investment funds for a long time. But in many cases, investment analysts have concluded that green funds have lower returns, and their environmental benefits provide a value that is more difficult to value.
However, new research made by the European equivalent of the SEC has concluded that green funds would actually do far better in a climate-related stock market shock.
And some details provided by a report from Investing.com have shown how extensive this research was.
“The European Securities and Markets Authority (ESMA) published what it described as a first attempt to assess vulnerabilities to climate-related financial risks using data from 23,965 EU-based funds worth 10.7 trillion euros ($12.7 trillion).”
The analysis showed that in a severe market shock, there was a considerable difference in losses. Green funds showed a loss between 3% and 7%, while brown or dirty funds could lose between 8% and 19%.
That means that there is now a tangible value in clean funds as they provide a lot of downside protection.
Chris Bolt
Chris is one of GreenCitizen’s writers who has been a long-time advocate of individual responsibility when it comes to the environment. He shares GreenCitizen's passion for making the world a better place every day of the year.
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