Pension schemes continue to fund fossil fuel companies despite a raft of climate commitments and evidence that savers want them to ditch such investments, according to Make My Money Matter. It believes investing in fossil fuels represents an 'environmental and financial timebomb' in pensions, warning this brings risks for individual savers. MMMM says in a rapid net zero transition, fossil fuel investments are at risk of significant devaluation, because company strategies will be threatened by climate litigation, plummeting demand, stranded assets, and a customer backlash.

Once the darling of the investment world, ESG funds have fallen out of favour this year, with investors pulling more money than they added for the first time in more than a decade. Performance has been sluggish as they grapple with inflationary pressures, the shift to value stocks and growing scepticism surrounding just how 'green' funds are. We asked fund managers whether the sector will bounce back in 2023 and where the opportunities lie.

A list of excluded and included sectors is ranked as the most useful information by private investors, followed by expert fund ratings and measures of environmental and social impact. People want 'clear and factual' disclosures, according to the Association of Investment Companies, which released its findings as City regulators unveiled plans to crack down on 'greenwashing' by the finance industry.

In 2021, $755billion was invested worldwide in the transition to 'clean' energy sources, according to a Bloomberg study, but future expenditure will far exceed this sum. For example, the International Energy Agency estimates that $820billion a year must be spent on power grids - the cables that link offshore wind farms and other power sources with consumers - if global warming is to be limited to 1.5 degrees Celsius by 2030. Annual outlay now is about $260billion. Anyone building a long-term portfolio should be paying attention to these global trends, whether you wish to save the planet, or believe that politicians' top priorities will be to keep consumers' fuel bills low and strengthen energy security.

Infrastructure is an important part of all our lives, providing essential services to support economic and social activity - and it is constantly evolving, explains Rob Morgan. 'For those seeking income, or a stable component to a portfolio that offsets shares, infrastructure investments can provide steady, more predictable returns.' he says. And meanwhile, companies that can help solve pressing environmental and social issues often find themselves in fast-growing markets, he adds.

Today, almost everyone is weighing up the pros and cons of electric vehicles, which in turn could mean a golden investment opportunity, according to Maike Currie of Fidelity International. 'Consumer scepticism around EVs is abating - gone are the days where people questioned whether they would get them to the shops, the availability of charging points and what happens if the car breaks down,' she says.

More investors are buying shares in companies that are doing something to help the planet and its inhabitants, says Ryan Lightfoot-Aminoff of Chelsea Financial Services. But less is said about bonds - loans to companies and governments so that they can finance this work, he points out. Here, he looks at what is available to investors - green, blue, social and sustainability-linked bonds - and which funds give you exposure.

'Genuine' consumer demand, the fund industry's embrace of responsible investing and regulatory changes will drive the popularity of this sector in future, says Laith Khalaf of AJ Bell. He reveals the most popular stocks held in ethical UK and global funds and the top performing 'ESG' funds of the past five years.

A number of investment trusts are targetting an area of the market considered essential for the future of green power - energy storage. Two of those leading the way, Gresham House Energy Storage and Gore Street Energy Storage, have dividend yields above 5 per cent and posted total returns of 23 and 20 per cent, respectively, over the past year.

Many people have good intentions to invest ethically, but are hesitant to take radical action with an existing portfolio they may have built and nurtured over many years. If you are interested in sustainable investing, but aren't sure what to ditch and keep, or how to find and probe decent replacement funds and trusts, we have asked financial experts to explain what steps to take.

Investing - especially ESG investing - is a highly emotive experience, says Dr Greg Davies (pictured). He explains how to avoid common mistakes when trying to invest ethically. 'When lots of people vaguely want something, but nobody knows precisely what they want, or seem inclined to find out, you've got a recipe for disappointment… and manipulation,' he says.

Forestry investment has become an increasingly attractive asset class as timber prices rocket amid a sustainability drive and inflation concerns. It has, however, largely been the preserve of high net worth or sophisticated investors. We look at how everyday investors can gain exposure.

One area of the income investing world that has attracted keen interest in recent years is renewable energy - a sector that offers both decent yields and a tailwind. The transition to green energy has had a huge weight of government support put behind it and it's hard to see a scenario where that won't step up as countries and companies seek to meet their net zero pledges. Simon Lambert looks at the investment oportunities there.

The Treasury-backed bank revealed yesterday it has doubled the return on its three-year Green Savings Bond from 0.65% to 1.3%.It follows two rate rises on popular easy access accounts last week, which will boost returns for savers by £75m a year. Around 650,000 savers hold its Income Bonds and Direct Saver, which now pay 0.5%. Experts hope the move will force other banks to follow suit.

Activists argue that firms are making empty environmental gestures, while on the other hand critics say firms shouldn't try to be 'woke' and should focus on profits and let the markets decide. One thing both sides are agreed on is that many companies are involved in so-called greenwashing to try to look good. Tensions in the City surfaced last month when stock-picker Terry Smith (pictured) blasted Unilever for having 'lost the plot' over its mayo's eco credentials.

More and more companies are clambering to offer meat alternatives as more people consider veganism in response to climate change concerns, and there are plenty of ways to invest in the future of food.

Since its launch nearly 20 years ago, Impax Environmental Markets has been one of the leading players in the 'green' investing space - building up a strong track record long before the recent rush of interest. Fund managers Jon Forster and Bruce Jenkyn-Jones pick out some of the companies it invests in and explain why they've proved to be good sustainable investments. They include SolarEdge Technologies, Advanced Drainage Technologies and DSM.

I(x) Net Zero, which invests in companies focused on the energy transition and sustainability in the built environment, has said it is looking to raise around £20million from an initial public offering on AIM later this month. Chaired by Nick Hurd, a former Conservative minister and MP who left politics in December 2019, the company aims to give investors 'long-term capital growth with positive, scalable, measurable and sustainable impact'.

While green energy forms a significant part of many environmental portfolios, there is an increasing amount being invested for growth, into companies operating at the cutting edge of industries ranging from semiconductors to fashion. Jupiter Green, managed by Jon Wallace, has a diverse portfolio of companies in industries ranging from fashion to solar panels. We find out more.

Funds that aim to have a positive impact on the world are surging in popularity. But while these funds may be saving the planet, they are often costing the investor. Green and ethical funds tend to be more expensive overall than traditional alternatives. The difference in cost may only be a basis point here or there, but over time it can add up. Unless these funds outperform traditional options, they will leave savers worse off financially. So is it possible to invest in a way that benefits the planet and society - without paying over the odds?

Millions of Britons using workplace pension schemes will soon be able to see the sustainability impact of their pension investments from their mobile phone. A new app feature is set to be launched later this month by Scottish Widows, one of the UK's biggest pension providers. The 'Find Your Impact' tool will assess companies' carbon footprint, waste and board diversity and provide members of employer pension schemes with their own personalised sustainability impact rating, based on the companies and funds they are invested in.

While some investors have ploughed money into green technologies - and vowed to shun big polluters - others see out-of-fashion sin stocks like oil companies as an opportunity. And thanks to a surging oil price - now up to $85 a barrel, after seven consecutive weekly gains - their bets appear to be paying off.

The country's housing stock is old and poorly insulated, and in order to hit the decarbonisation targets it has already signed up to, the Government must persuade us to swap our gas boilers for heat pumps, and further insulate our draughty homes. Energy inefficient buildings are a problem for the Government and an expensive (and chilly) one for homeowners. But the need to modernise Britain's housing stock presents an opportunity for investors.

Harry and Meghan are the latest in a long line of famous faces, politicians and brands to start talking about 'ESG' - which stands for 'Environmental, Social and Governance'. And the trend is filtering down to the High Street banks. The amount of money being spent on 'ethical banking' more than doubled between 2010 and 2019 to £19,665, according to a report by Ethical Consumer.

More than two thirds of the biggest final salary pension schemes have failed to make 'robust' commitments to fight the climate emergency, claims Make My Money Matter. Some 71 out of the top 100 funds, run for staff of some of the country's best known employers, have been named and challenged to declare a strong strategy on combating global warning.

Lots of leading funds are not as green as they make out. But there are ample opportunities to invest in companies taking a proactive approach whether it be in agriculture, energy or healthcare. We look at what is out there for investors keen to put their cash in companies doing genuine good.

A major problem for investors is confusion over want counts as sustainable investing while ESG investments can vary wildly. This can lead to investors having to spend a substantial amount of time researching funds and trying to unpick exactly what they aim to do and invest in. Coupled with concerns that some fund managers may be jumping on the ESG bandwagon to boost sales, this means that investors may simply shun the issue as too complex.

Green investing is more popular than ever with inflows into ethical, sustainable or responsible-badged investment funds running at record levels. But how do you know that the fund you are buying - for an Isa or a pension - is really green and in line with your ethics? Here are the ten questions you should get answers to before opting for a specific green fund.

The past couple of years have seen a combination of factors come into play to drive more investing for good rather than just profit. The investment industry has indulged in a bonanza of ESG marketing; worries over the environment have driven a resurgence in green investing; and a new breed of younger investors has joined the fray. In theory, that should make it a golden time to try to invest your money ethically, but chuck all that into the mix and you end up with a bit of mess.