Growing public awareness of global warming, coupled with institutional investors’ renewed interest in alternative asset classes, is giving a boost to index providers that screen for green.

"We have to act now," says New York State Comptroller Thomas DiNapoli, who pushed the New York State Common Retirement Fund to invest in green indexes recently. "There’s too much at risk for our planet."

Most large pension fund managers, however, have not shared DiNapoli’s urgency — at least not until now. The vast majority are still sitting on the green sidelines, according to a survey of 39 of the largest pension fund managers in the U.K. conducted this summer by FairPensions, a London-based organization that promotes responsible investing. "Climate change as an investment issue is still very much a niche issue rather than mainstream," says Louise Rouse, director of investor engagement at FairPensions. ....

Read More: green investing · institutional investors · index fund · investment strategies