Bond and equity funds invested by Austrian occupational and provident funds have made progress on CO2 disclosure, footprint and intensity, according to new research.

“The disclosures of emissions in all funds and benchmarks have improved since 2018, particularly in Austrian equity funds, but benchmarks remain ahead, for example the European benchmark achieved in 2023 a 92% disclosure rate,” said Rina Altmann of investment consultancy The Value Group during a webinar this week presenting the results.

Altmann co-authored the study Climate-related analysis of the Austrian financial market, commissioned by the Ministry for Climate and Environment Protection (BMLUK), which assessed the impact of decarbonisation on the domestic financial market.

The analysis – covering the period 2018-2023 – supports Austria’s Green Finance Agenda to redirect capital towards sustainable investments.

Overall, CO2 footprint and emission intensity improved in almost all funds analysed, with the exception of Austrian bond funds, where CO2e footprint and emission intensity increased by 5% and 22%, respectively. The study found that sustainable funds still emit more than the sustainable benchmark, suggesting further scope to cut emissions.

Researchers analysed the 100 largest equity funds allowed to distribute products in Austria, managing approximately $1.12bn, the 100 largest funds run by asset managers with $158bn in assets, and the 50 largest sustainable funds labelled article 8 or 9 of the SFDR. The 50 largest bond funds authorised in Austria, with $158bn in assets, and the 50 largest bond funds run by Austrian asset managers were also included.

Austrian pension and provident funds are indirectly included in the data as investors in the funds, the ministry told IPE in a statement. The findings also apply to pension funds depending on their allocation to Austrian funds, it added.

The ministry said it is actively working to integrate pension institutions’ data into regular analyses of sustainable investing.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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