Signs that climate change is becoming an issue for investors.

A new report by Ceres, Mutual Funds and Climate Change, has found that mutual funds are starting to more notice of climate change.

The research found that from 2004 to 2007, the overall level of mutual fund votes against climate resolutions dropped from more than three out of four (77.8 per cent) to just under two-thirds (65.1 per cent). Furthermore, more mutual funds are sitting on the fence rather than opposing climate change resolutions at company meetings. The number of abstention votes on climate change resolutions has doubled from 12 per cent in 2004 to 24 per cent in 2007.

Still, there's some way to go. The report found that some mutual fund companies and related entities, like Morgan Stanley, are now caught in a bind. On one hand, they are seeking to attract climate-related business. At the same time, however, they are still voting against climate resolutions.