Growth comes as money managers triple assets under management that apply ESG principles
SRI assets surged by 76 percent from 2012 to 2014 in the US as money managers and a range of institutional investors adopted ESG-focused strategies, according to a study by US SIF.
SRI assets in the country rose to $6.57 tn at the start of 2014, up from $3.74 tn at the beginning of 2012, the professional SRI association says in a press release. Assets managed using ESG strategies now account for more than $1 in every $6 professionally managed in the US.
‘Investment decisions using sustainable, responsible and impact investing strategies are on the rise,’ says Lisa Woll, CEO of US SIF, in the press release. ‘Sustainable investment strategies are being applied across asset classes to promote CSR, build long-term value for companies and their stakeholders, and foster businesses that will yield community and environmental benefits.’
Growth in SRI assets saw money managers more than triple assets managed with ESG strategies to $4.8 tn at the start of 2014 from $1.4 tn two years earlier, US SIF says. A survey of 119 money managers shows that 80 percent attribute the increase to demand by clients, though 70 percent also say they consider ESG factors as part of a mission to manage risk and improve returns.
Assets to which institutional investors including pension funds, foundations, educational endowments and religious institutions apply ESG criteria rose 77 percent at the same time, climbing to $4.04 tn. The number of alternative investment funds, meanwhile, increased their SRI assets under management to $224 bn from $132 bn.
Both money managers and institutional investors say they consider climate change the most important environmental factor in their ESG investment strategies while the crisis in Sudan remained the most prevalent social factor in ESG strategies among US investors.
