According to a new study by energy and investment firm Octopus Group, which surveyed approximately 100 investors representing a combined estimate of $5.9 trillion in assets.
Survey respondents indicated a joint divestment of 15.6% in oil and gas portfolios, almost triple the rate of 5.7% predicted for 2020, representing a total of $920 billion out of fossil fuel investments by 2030.
Octopus Group indicates that renewable energy is set to benefit as institutional investors increase clean energy allocations to 5.2% by the end of 2020, and predict this figure more than double to 10.9% by 2029.
Surveyed companies alone are due to invest $643 billion in renewables over the next decade, with 71% of these businesses affirming their belief that investment strategies could be used to make a “material difference” to the fight on climate change.
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Matt Setchell, Co-head of Octopus Renewables, said: “Our children’s futures will be shaped by decisions that are made now by the global investment industry.
“Given the scale of the challenge and the limited time we have to make a change, the guardians of trillions of dollars of capital have a crucial role to play in averting a climate crisis.”