Added bank and insurance ratings to Fossil Free Funds
BERKELEY, CA, Sept. 14, 2022 (GLOBE NEWSWIRE) — As you sow today released new Fossil Free Finance and Insurance Ratings, which rank mutual funds and ETFs based on their investments in banks and insurers that provide lending and underwriting to support fossil fuel projects.
The Fossil Fuel Finance and Fossil Fuel Insurance ratings are the latest additions to the Fossil Free Funds investment tool. The new fund ratings evaluate investment portfolios based on their exposure to banks that finance fossil fuels and insurance companies that underwrite and invest in coal, oil and gas. The new fund ratings are intended to help investors identify investments that avoid climate risks from financial institutions.
“Since the Paris Agreement, the top six US banks – JPMorgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs – have provided $1.4 trillion in financing to the fossil fuel industry, leading to the Climate crisis and its consequences contributed to significant portfolio risk for investors”, said Andrew Montesmanager of As you sow Invest Your Values program.. “Investors in mutual funds, ETFs and 401(k)s deserve to understand the climate risk embedded in their portfolios from these financial institutions.”
The high-carbon financing of commercial and investment banks is fundamentally inconsistent with meeting the 1.5 degree global target needed to prevent catastrophic climate damage. Insurers and reinsurers continue to underwrite and invest in coal, oil and gas while suffering dramatic losses related to catastrophic weather-related events.
“By continuing to support high-carbon companies and projects, financial institutions are exacerbating the climate crisis and delaying the transition to a clean energy economy.” said Danielle FugerePresident of As you sow. “Climate change creates financial risks. Investors should be aware of which companies in their portfolios are contributing to these risks.”
The new ratings use data from the Banking on Climate Chaos report and the Insure Our Future scorecard on bank lending and insurance policies related to fossil fuels — including high-risk operations like tar sands, Arctic drilling and coal mining.
Fossil Free Funds is one of them As you sow Eight Invest Your Values online tools that also include Deforestation Free Funds, Gender Equality Funds, Gun Free Funds, Prison Free Funds, Weapon Free Funds, Tobacco Free Funds and the Retirement Plan Sustainability Scorecard.
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As you sow is the nation’s leading not-for-profit shareholder advocacy organization with a 30-year track record of advancing corporate environmental and social responsibility and promoting value-based investing. Topic areas include climate change, plastic in the ocean, pesticides, racial justice, diversity in the workplace and executive compensation. Click here for As you sow Shareholder Resolution Tracker.