Sustainable Investments Surged by Third to $8.7 Trillion in 2016

Tuesday, November 15, 2016

Sustainable investments surged by more than $2 trillion in the last two years as money managers worked to accommodate U.S. institutions’ demand for assets that meet environmental, social and corporate-governance goals.

The sustainable, responsible and impact-investing category totaled $8.72 trillion at the start of 2016, representing about one fifth of all managed investments, according to a biennial report published by Washington-based US SIF Foundation, the Forum for Sustainable and Responsible Investment. More than 1,000 investment funds totaling about $2.6 trillion include ESG criteria, the group said.

Clients are asking for new funds that focus on specific issues, including climate change and conflict risk, which avoids companies doing business with countries that support terrorism or have repressive regimes, such as Iran and Sudan, said Meg Voorhes, research director for US SIF.

 They’re also steering clear of weapons and firearms, Voorhes said. Policies on military and weapons affected $845 billion in institutional investor assets in 2016, more than double the $355 billion in 2014 and more than tenfold the amount in 2012.

“A lot of this is driven by public funds that have seen mass shootings in their districts,” she said.

Source: Bloomberg (link opens in a new window)

Environment, Investing
impact investing