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🗞️ Driving the news: A new investigation reveals that millions of euros in 'climate-friendly' investments have been funneled into major carbon emitters like BP, Chevron, and Exxon
• Eurizon Capital SGR, managed by Italy's largest bank Intesa San Paolo, along with other financial institutions, has exploited loopholes in EU regulations to invest in these companies under the guise of 'green' financial products
🔭 The context: Eurizon is among several financial entities in Europe accused of using deceptive marketing to sell supposedly sustainable investments that actually support large polluters
• Despite managing assets worth €381 billion, Eurizon purchased shares valued over €208 million in fossil fuel companies, labeling them as 'sustainable and responsible investments'
🌍 Why it matters for the planet: These investments contradict the goals of the Paris Climate Agreement, as the supported fossil fuel majors are involved in projects that could deplete the remaining carbon budget for limiting global warming to 1.5°
• This misdirection of 'green' funds highlights a significant gap in achieving genuine sustainability and combating climate change.
⏭️ What's next: The European Securities and Markets Authority (ESMA) and other regulatory bodies may need to tighten and clarify sustainability criteria to prevent greenwashing
• Investors and the public are becoming increasingly aware of these practices, which could pressure financial institutions to adopt more authentic sustainable investment strategies.
💬 One quote: "The European Commission’s rules leave a margin of discretion to investors in determining their sustainability targets," says Fabio Moliterni, a specialist at the ethical finance company Etica SGR, highlighting the regulatory flexibility that enables greenwashing.
📈 One stat: In 2022, Eurizon bought shares in seven fossil fuel companies for a value of more than €208 million, mislabeling them as 'sustainable and responsible investments'.
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