Despite the multiplication of green marketing claims on the topic, research suggests that genuine ‘impact management’ does not yet exist for financial products commonly sold to end-users (such as equity and fixed income funds, life insurance products, etc.).
The key technical barriers relate to 'additionality':
The same obstacles exist for institutional investors that commit to align their investment strategy with climate goals: although scenario analysis enables to measure the alignment of asset allocation with climate goals, there is no methodological framework today to measure the impact of investment choices in the real economy.
Investors tend to optimize the warm glow - Heeb et al (2021)
Reviewing the mechanisms of investor impact - Köelbel et al (2020)
Behavioural finance experiment - Bauer et al (2018)
A guide to realising climate impact across asset classes
Chapter in "Making the Financial System Sustainable"
(Cambridge University Press, 2020, edited by Paul Fischer)
Collective book from the members of the EU High Level Expert Group on Sustainable Finance. Stan Dupre's chapter focus on the integration of sustainability into financial advice and the related reform of MIFID/IDD.