The number of climate-focused open-ended portfolios available to investors has increased by approximately 600% since 2018, according to the latest study from Morningstar.
Its fourth annual Investing in Times of Climate Change paper, which explores the progression of climate-themed funds, found that as of June 2023, there were 1,407 open-ended and exchange-traded funds with a climate-related mandate. This compared with fewer than 200 portfolios five years ago. Total assets within the funds had also surged by around 30% in the past 18 months to $534bn, partly as a result of the product development. Morningstar global director of sustainability research Hortense Bioy said the growth of this sector since 2018 was "simply remarkable and reflects the growing...
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