Investors who want exposure to the decarbonisation megatrend need to be clear on whether they’re also willing to take on exposure to fossil fuels, as well as risk, investment specialists have said, as the green market continues to grow despite a bumpy 2022.

Only 35 per cent of Australian sustainable funds outperformed their respective peers over the 2022 calendar year as coal, oil and gas producers surged on the back of high energy prices.