Mutual funds have a significant role to play in driving the fight against climate change, but figures show they are often reluctant to do so. However, managers that experience extreme weather events such as hurricanes hitting Canada’s Atlantic coast and wildfires and flooding, are more likely to back eco initiatives than those areas without this experience.
That’s according to research from RSM in the Netherlands, which highlights a huge disconnect between actions taken by some corporations and mutual fund managers who hold significant voting power. Guosong Xu, Professor of Finance at RSM, said that climate change related proposals have increased steadily in recent years, reflecting growing investor demand for corporate accountability but frequently are poorly supported.