Genus Capital Management, an investment management firm in Vancouver BC, has developed a new fossil fuel financing screen to eliminate the top oil and gas financing banks from around the world from their Fossil Free suite of funds. The screen will help Genus clients decrease the carbon footprint of their portfolios and align their portfolios with their values. The top 10% of major banks that provide capital to fossil fuel firms will be excluded from the investible universe.
The screen has been created as many banks continue to be at odds with their sustainable financing aspirations. The loan books of the seven banks that are being excluded account for over 424 million tones of CO2e emitted each year . By eliminating these firms, Genus is cutting the indirect portfolio emissions of its clients, along with removing firms with significant controversies.
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The decision to create a fossil fuel financing screen is not only a response to the growing concern around climate change and the impact of investments on the environment, but also a reflection of the evolving priorities of investors. As investors increasingly prioritize social and environmental issues, companies and fund managers are under increasing pressure to align their investments with these values.
While there is still much work to be done in terms of shifting capital towards renewable energy and low-carbon alternatives, the development of the fossil fuel financing screen is an important milestone. By excluding banks that provide significant financing to fossil fuel companies, investors can contribute in reducing climate change while also supporting companies and initiatives that are aligned with their values. As the world continues to shift towards a more sustainable future, it is likely that we will see more initiatives like this emerge, as investors seek out socially responsible investment options that are in line with their priorities.
By continually innovating to provide their clients with new ways to align their investments with social and environmental priorities, Genus demonstrates their deep and ongoing commitment to creating a more sustainable and equitable future for all.
SOURCE: PR Newswire