Only 158 investment funds with just 0.5 percent of assets under management are currently in line with Paris accord goals of limiting the increase in global temperatures, according to a study released Wednesday.

The non-profit Carbon Disclosure Project (CDP) analysed over 16,500 investment funds with $27 trillion in assets, but found that over 60 percent of assets are aligned with global warming of 2.75 degrees Celsius.

Under the 2015 Paris agreement nations agreed to try to keep the increase in global temperatures to well below 2C, with 1.5 C the preferred target to avoid dangerous changes in climate.

The CDP tracks and rates the climate pledges of companies and the measures they have taken.

"Despite mounting net-zero commitments from the financial sector, and an apparent (sustainable finance) 'boom', the truth is that not even 1 percent of fund assets are currently Paris-aligned," said Laurent Babikian, joint global director for capital markets at CDP.

"This is like an x-ray on the industry, exposing almost all assets on the planet to be out of step with climate objectives," he added.

The report comes just days ahead of the COP26 climate summit.

The Glasgow meeting is being billed as crucial for the long-term viability of the Paris climate deal as more studies show the world is far away from meeting the 1.5C goal.

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