Urgewald, our host organisation in Europe, along with 14 other NGOs, just recently released a crucial report called "Investing in Climate Chaos." This report shows troubling data about how much money big investors put into fossil fuels. It reveals that these institutions have a total of $4.3 trillion invested in the coal, oil, and gas industries.
What are Institutional Investors?
Institutional investors are organizations like pension funds, insurance companies, and banks that manage large sums of money. They invest this money on behalf of their members or customers, often by buying stocks and bonds. Because of their size and the amount of money they control, their investment choices have a big impact on the markets and, consequently, on the environment.
The Biggest Investors
The "Investing in Climate Chaos" report points out the four biggest investors in fossil fuels, all located in the U.S.: Vanguard, BlackRock, State Street, and Capital Group. Together, these four hold over $1.1 trillion in these damaging industries. This large amount of money shows that significant financial players are still heavily invested in industries harmful to our planet.
Europe’s Role
European investors also play a big part, with $554 billion invested in fossil fuels. Notable among them are the Norwegian Government Pension Fund Global and Switzerland’s UBS. Some European investors are trying to reduce their coal investments, but overall, the investment trends in Europe still lean heavily towards fossil fuels.
Urgent Message
It’s critical to stop investing in fossil fuels now and start supporting renewable energy if we want to avoid the worst impacts of climate change. Katrin Ganswindt from Urgewald emphasizes that big investors need to stop putting their money into new fossil fuel projects right away.
The Climate Reality Project Europe relies on Urgewald’s detailed research to call for big changes in how money is invested to better match the goals of the Paris Agreement. As we get closer to the 2024 UN Climate Conference (COP29) in Baku, the focus on how money is spent in relation to climate will grow. This year should be a turning point where we see real actions and big changes in climate finance.
Get Involved
Visit Investing in Climate Chaos for more details and help spread the message!
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