The recently released Global Sustainable Investment Review 2014 shows a period of huge growth in responsibly managed assets across the globe. This is an exciting time for responsible investment. The key findings were that:
- Responsible Investment assets have grown by 61% from 2012 to 2014 to a staggering US$21.4 trillion
- This now represents 30% of professionally managed assets in the regions covered, a growth from 21.5% two years ago.
- The vast majority of these assets are in Europe (64% of total) and the US (30% of the total).
- All regions have seen significant growth in assets in the past 2 years: EU 55% growth; US 76% growth; Canada 60%; and Australia/New Zealand 34%
- Proportionally, EU sees the greatest proportion of their market under RI mandates - 60% of TAUM; Canada 30%; US 18%; Aust/NZ 17%
- The most common strategy used is negative screening (largely due to the EU pension fund approach of screening out some key industries), then ESG (Environmental, Social and Governance) integration.
Indeed, the recent US survey found that of 120 asset managers surveyed, 80% said the key driver in the uptake of RI was client demand.