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UK tracker funds are not socially responsible

By Marina Gerner, Money Observer

Tracker funds are financing activities that damage society and the planet because they pump hundreds of millions of pounds into fossil fuel and tobacco companies, warn responsible investment experts at Castlefield Advisory Partners.

On the occasion of Good Money Week (30 October-4 November) the advisory company commissioned a report which shows that eight of the UK's nine biggest tracker funds - which together have £16.7 billion under management - invest £1.2 billion, or 9 per cent of their combined value, in fossil fuels.

In addition to causing environmental damage, these funds leave investors exposed to climate risk. Bank of England governor Mark Carney has previously warned that action to limit climate change and the transition to a low carbon economy will leave fossil fuel investors facing huge losses.