Sustainable investments represent more than a third of global assets

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By Simon Jessop

LONDON (Reuters) – Sustainable investments total $ 35.3 trillion, more than a third of all assets in five of the world’s largest markets, a report from the Global Sustainable Investment Alliance revealed on Monday.

Investors are increasingly motivated by environmental, social, and governance (ESG) factors that have traditionally not been factored into a company’s balance sheet, but which can influence future returns.

The GSIA, whose member organizations track growth in their region, said professionally managed assets, using a large measure of what it means to invest sustainably, account for 36% of total assets under management.

While some industry growth assessments focus on retail focused mutual funds with a specific sustainability mandate, the GSIA also includes wholesale and institutional assets.

The report also includes money invested using a process that assesses the risk and return impact of issues, such as climate change, even though the strategy’s mandate does not have a target. formal and explicit sustainability, known as “ESG integration”.

The biennial Industry Survey looked at assets in the United States, Europe, Australasia, Japan and Canada, using data at the end of 2019 for all regions except Japan, where the data were scheduled to end in March 2020.

Since the last report, total assets in the markets have increased by 15%, according to the report.

“This growth is fueled by rising consumer expectations, strong financial performance and the growing materiality of social and environmental issues – from biodiversity to racial equity to climate change,” said Simon O’Connor, president of the GSIA.

Canada and the United States have experienced the strongest growth over the past two years, according to the report, at 48% and 42%, respectively.

(Reporting by Simon Jessop; editing by Barbara Lewis)


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