School of Business

Mutual fund investor response to climate activism: Evidence from the 2019 Global Climate Strike

Document Type

Article

Abstract

This study examines the impact of the March 2019 Global Climate Strike on U.S. mutual fund flows, addressing a gap in the literature on how climate activism influences fund investment behavior. Using a sample of U.S. equity funds and an event study methodology, we find that low-carbon funds receive significantly higher net inflows than high-carbon funds during the strike month and the following two months. This effect is stronger for retail investors relative to institutional investors. Additionally, the study examines the impact of Morningstar's continuous carbon risk metrics on investment decisions. Together, our findings suggest that the climate strike heightened awareness of climate risks, prompting increased investment in low-carbon funds. This response underscores the effectiveness of climate activism in driving investment toward a low-carbon economy. © 2025 Elsevier B.V.

Publication Title

Economic Modelling

Publication Date

10-2025

Volume

151

ISSN

0264-9993

DOI

10.1016/j.econmod.2025.107197

Keywords

climate activism, climate strike, low-carbon funds, mutual funds

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