Climate activists in Germany have criticized major investors for continuing to invest billions in the oil, gas, and coal industry.
The investments are hindering the timely transition away from fossil fuels to mitigate global warming, said Katrin Ganswindt, a member of the environmental organization Urgewald.
Urgewald, along with 13 partner organizations, published the financial research report Investing in Climate Chaos, providing insights into the investments of over 7,500 institutional investors globally.
Financial data collected in May revealed that these investors collectively hold $4.3 trillion in bonds and shares of companies involved in fossil fuel industries, with nearly two-thirds of these investments held by US companies, according to the report.
The report demanded that "institutional investors need to start shifting the trillions to supercharge the energy transition and not fossil fuel expansion."
Climate researchers warn that if current trends continue, the world is on track to be nearly three degrees hotter, primarily due to emissions from coal, oil, and gas.
After decades of discussion, the international community agreed for the first time at the UN Climate Change Conference in Dubai in December to move away from coal, oil and gas. Despite this agreement, environmentalists are raising concerns about potential loopholes.