Investment behemoth Vanguard has been accused of falling behind its peers on climate due to its major fossil fuel exposure and the absence of clear policies to address climate risks.
The $7.2tn Vanguard Group, along with BlackRock and State Street, is one of the three largest asset managers in the world. But new analysis from the Institute for Energy Economics and Financial Analysis (IEEFA), a prominent US energy think tank, concludes that it is also the world’s largest investor in fossil fuels.
The study, released today, claims that the firm holds an estimated $300bn fossil fuel exposure - around 6% of its total assets - including $90bn in thermal coal.
In comparison, S&P data from January valued BlackRock’s exposure to oil and gas at $90bn. A 2019 Guardian-commissioned study estimated that State Street had invested at least $38.3bn in publicly-listed fossil fuel companies.
IEEFA researchers noted that Vanguard continues to operate withou…