The number of mutual funds and exchange-traded funds (ETFs) with a climate-focused mandate grew to 860 at the end of last year, according to a new report from Morningstar, while assets in the space doubled to $408bn.
The report, which examined climate-focused investment funds, revealed 2021 was a stand-out year for environmental finance as COP26, a new US administration, and rapid growth in industry collaboration drove climate action and commitments across businesses and the asset management industry. As product development in the space gathered pace, $408bn in assets flowed into climate-focused funds over the year, according to Morningstar, with Europe being the most diverse market, accounting for $325bn alone. China outpaced the US for the first time, taking the spot as the second largest climat...
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