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Failed Theories of Change: Misperceptions About ESG Investment and Investment Efforts to Combat Climate Change

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Theories of Change

Part of the book series: Sustainable Finance ((SUFI))

Abstract

Sustainable Investing is joining the mainstream. This development is due to transformations in the financial system and regulatory landscape. This article explores the effectiveness and failure of new investor approaches to address sustainable investing.

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Notes

  1. 1.

    Global Sustainable Investment Alliance (GSIA), 2018 Global Sustainable Investment Review.

  2. 2.

    Climate Action 100+ combines over 300 investors with over USD 30 trillion of assets under management to engage with the 160 largest greenhouse gas emitting companies to change course.

  3. 3.

    Global Carbon Budget 2018, Earth Syst. Sci. Data, 10, 2141–2194, https://doi.org/10.5194/essd-10-2141-2018, 2018.

  4. 4.

    Unlocking the trillions to finance the 1.5 °C Limit, World Future Council 2017, https://www.worldfuturecouncil.org/unlocking-the-trillions/

  5. 5.

    Shooting for the moon in a hot air balloon, 2° Investing Initiative, https://ec.europa.eu/info/law/better-regulation/feedback/14080/attachment/090166e5bd23089a_en

  6. 6.

    The green and sustainability loan market: ready for take-off, Environmental Finance, https://www.environmental-finance.com/content/analysis/the-green-and-sustainability-loan-market-ready-for-take-off.html

  7. 7.

    How ESG engagement creates value for investors and companies, PRI, https://www.unpri.org/download?ac=4637

  8. 8.

    Launched 2017, success stories so far: Royal Dutch Shell, Glencore, Equinor, Maersk and BP.

  9. 9.

    ClimateAction100+: Engagement 2.0? Responsible-investor.com, https://www.responsible-investor.com/home/article/climateaction100_engagement_20/P0/

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Correspondence to Maximilian Horster .

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Horster, M. (2021). Failed Theories of Change: Misperceptions About ESG Investment and Investment Efforts to Combat Climate Change. In: Wendt, K. (eds) Theories of Change. Sustainable Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-52275-9_4

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