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Sustainable investments account for more than a third of global assets
Sustainable investments total $35.3 trillion, or more than a third of all assets in five of the world’s biggest markets, a report from the Global Sustainable Investment Alliance on Monday showed.
Investors are increasingly driven by environmental, social and governance-related (ESG) factors that traditionally have not been captured in a company’s balance sheet, but that can influence future returns.
The GSIA, whose member bodies track growth in their region, said professionally managed assets, using a broad gauge of what it means to invest sustainably, account for 36% of total assets under management.
By Syndicated Content
By Simon Jessop
LONDON (Reuters) â Sustainable investments total $35.3 trillion, or more than a third of all assets in five of the worldâs biggest markets, a report from the Global Sustainable Investment Alliance on Monday showed.
Investors are increasingly driven by environmental, social and governance-related (ESG) factors that traditionally have not been captured in a companyâs balance sheet, but that can influence future returns.
The GSIA, whose member bodies track growth in their region, said professionally managed assets, using a broad gauge of what it means to invest sustainably, account for 36% of total assets under management.
European ESG Assets Shrank By $2 Trillion After Greenwash Rules
Alastair Marsh, Bloomberg News Onshore wind turbines in Sviland, Norway, on Friday, Dec. 11, 2020. Wind power could be a vital part of Norway s plan to slash pollution, but many voters have had enough of the machines that stand as tall as skyscrapers. Photographer: Bloomberg/Bloomberg , Photographer: Bloomberg/Bloomberg
(Bloomberg) The European market for sustainable investments contracted by $2 trillion between 2018 and 2020 following the introduction of anti-greenwashing rules, according to data from the Global Sustainable Investment Alliance.
Sustainable investment assets fell to $12 trillion in Europe during 2020 from $14 trillion in 2018, the report states. The decline isnât the result of dampened investor enthusiasm for ESG investments, itâs because policy makers have tightened the parameters for what can be considered a responsible investment, sa
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Photo: 123RF
The biennial
Global Sustainable Review showed that more than a third of funds under management globally were in sustainable based investments, having risen 15 percent over the past two years to be worth $US35 trillion worldwide.
Responsible Investment Association of Australasia chief executive Simon O Connor said the trend had grown and was reshaping the investment sector. This growth is being fuelled by rising consumer expectations, strong performance and the increasing materiality of social and environmental issues - from biodiversity to racial equity to climate change.