Since 2018, US-listed companies have made up a larger share of climate funds than they do of the overall market, averaging 67% in climate funds, compared with 58% in global markets generally, as represented by the MSCI ACWI Index.
Tensions over trade and changes in US policy could shift the eye of climate finance away from the world’s largest economy, say research directors from MSCI Sustainability Institute, citing recent flows within climate-themed funds.
While US-based companies have historically attracted the lion’s share of investment in these strategies, funds have begun to flow toward opportunities elsewhere in recent months, according to Rumi Mahmood and Linda-Eling Lee.
