Key Takeaways
- Global ESG assets under management reached $35.3 trillion in 2021, representing 35% of total professional AUM.
- By 2022, sustainable investment assets in Europe hit €14 trillion, up 55% from 2018.
- US ESG funds saw inflows of $82.5 billion in 2021, the highest on record.
- ESG funds in MSCI World Index comprise 25% weight 2023.
- Over 10 years to 2022, ESG leaders outperformed laggards by 4.5% annualized.
- S&P 500 ESG Index returned 12.5% annually 2018-2022 vs 10.2% broad index.
- Firms with high ESG disclosure saw 3% lower cost of equity 2020-2022.
- Companies with top environmental scores reduced Scope 1 emissions 28% 2015-2022.
- ESG funds divested $10 trillion from fossil fuels since 2018.
- Gender pay gap narrowed 12% in top ESG firms 2015-2022.
- 70% of ESG funds prioritize diverse boards, up from 40% in 2018.
- Companies with high S scores saw 15% lower employee turnover.
- Board independence averaged 85% in top governance-rated firms 2023.
- Anti-bribery programs reduced incidents 60% in G leaders 2018-2022.
- Dual-class shares phased out in 40% ESG indices 2023.
Esg investing has surged, now commanding trillions of dollars globally as it grows.
Environmental
Environmental Interpretation
Financial Performance
Financial Performance Interpretation
Governance
Governance Interpretation
Market Adoption
Market Adoption Interpretation
Social
Social Interpretation
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