SRI Study launch by Eurosif - The European Sustainable Investment Forum
The 8th edition of Eurosif Market Study reveals sustained growth for most sustainable and responsible investment (SRI) strategies. The past two years show clear signs of SRI becoming integral to European fund management with managers better articulating their investment strategies. ESG integration remains by far the preferred strategy, growing by 60%.
This is a very positive record, marked at over €4 trillion of assets under management, which indicates that almost every asset manager that responded to the survey implements some form of ESG integration. Engagement and Voting gains further ground as the strategy grows by 14% giving evidence of the renewed commitment of investors to interface with the companies in their portfolios and truly reach out to make a difference. This positive engagement translates into less appetite for more dogmatic approaches. In fact, though Exclusions remains a dominant strategy in terms of assets with €9.4 trillion, we register a slight decrease by 7%. Tobacco features as the most popular exclusion criteria, reflecting a wave of divestment which in the past two years has involved large asset owners from Europe and beyond. Impact Investing continues to grow registering a 6-year CAGR of 52% and reaching €108 billion in assets, from only €20 billion in 2013. We are bound to see more growth for this strategy in the next years, as it becomes increasingly aligned with Sustainable Development Goals (SDGs): a turnkey for investors. Another interesting trend we register is the growth in the retail sector which goes from 3.4% of assets surveyed in 2014 to 30% this year. The appetite for SRI is clearly there, what is needed now is further work to capitalise on this wave of interest and with the latest policy dynamics we seem to be heading in the right direction.