The Latest Global Esg Industry Statistics Explained
As of 2020, Global sustainable investment reached $35.3 trillion.
The statistic that as of 2020, global sustainable investment reached $35.3 trillion indicates the total value of funds that were invested in sustainable and socially responsible projects, companies, and initiatives worldwide. Sustainable investments are made with the intention of generating financial returns while also promoting environmental and social benefits. This figure highlights the increasing recognition and importance of sustainable investing as a way to address pressing global challenges such as climate change, social inequality, and resource depletion. The substantial scale of sustainable investments signifies a growing trend among investors and financial institutions towards incorporating environmental, social, and governance (ESG) factors into their decision-making processes and portfolios.
Europe accounted for the largest global ESG investment in 2020, with the total amount exceeding $14 trillion.
The statistic indicates that Europe led in Environmental, Social, and Governance (ESG) investing globally in 2020, with a total amount exceeding $14 trillion invested in companies and assets that align with sustainable and responsible practices. ESG investing has gained significant traction in recent years as investors increasingly prioritize factors beyond financial returns, such as climate change, diversity, human rights, and ethical business practices. Europe’s leadership in ESG investment underscores the region’s commitment to sustainable development and responsible business practices, positioning it as a global leader in driving capital towards companies that are making a positive impact on society and the environment.
Morningstar reported a 96% increase in global ESG fund assets under management in 2020.
The statistic states that Morningstar, a leading research firm in the investment industry, observed a substantial 96% increase in assets under management for global ESG (environmental, social, and governance) funds in the year 2020. This indicates a significant rise in investor interest and allocation of capital towards ESG-focused investment strategies as a response to growing awareness of sustainability, social responsibility, and corporate governance factors. The surge in ESG fund assets reflects a shift in investor preferences towards aligning their financial goals with environmental and social impact considerations, illustrating a broader trend towards sustainable investing practices across global financial markets.
In 2020, 81% of global investors applied ESG principles to at least a quarter of their portfolios.
The statistic indicates that in 2020, a significant majority of global investors, amounting to 81%, incorporated Environmental, Social, and Governance (ESG) principles into a substantial portion of their investment portfolios. Specifically, they applied these responsible investing principles to at least a quarter of their investment holdings. This finding highlights a growing trend among investors towards considering not only financial returns but also the wider impact of their investments on the environment, society, and corporate governance practices. With ESG investing gaining momentum globally, this statistic underscores the increasing importance of sustainability and ethical considerations in investment decision-making processes.
The number of ESG funds available globally surpasses 500 in 2020.
The statistic indicates that there are more than 500 environmental, social, and governance (ESG) funds available for investors worldwide in the year 2020. ESG funds focus on sustainable and socially responsible investing by considering non-financial factors alongside traditional financial metrics when making investment decisions. The increasing number of ESG funds reflects the growing interest among investors in aligning their values with their investment choices and incorporating sustainability considerations into their portfolios. This trend highlights the increasing importance of ESG criteria in investing and suggests a shift towards more socially conscious and environmentally friendly investment practices globally.
Global ESG assets are set to exceed $53 trillion by 2025, equivalent to more than a third of $140.5 trillion in total projected assets under management.
This statistic highlights the rapid growth and significant impact of environmental, social, and governance (ESG) investing in the financial industry. The projection suggests that by 2025, global assets that are managed with consideration for environmental, social, and governance factors will amount to over $53 trillion, which represents more than a third of the total projected assets under management worldwide, estimated at $140.5 trillion. This exponential growth in ESG assets signals an increasing awareness and prioritization of sustainability and responsible investment practices among investors, asset managers, and financial institutions, indicating a shifting focus towards long-term value creation, risk mitigation, and positive societal impact within the investment landscape.
Fixed-income ESG primarily scored environmental data made up the largest portion of this category, 42.0%, in 2020.
This statistic indicates that within the fixed-income ESG (Environmental, Social, and Governance) category, the largest proportion of data related to environmental factors, particularly in the context of sustainability and ethical practices, accounting for 42.0% of the total data in 2020. This suggests that environmental considerations, such as climate change impact, resource usage, and green initiatives, were the most significant focus within the fixed-income ESG investments during that year. This emphasis on environmental factors highlights the growing importance of environmental sustainability and responsible business practices in the investment decision-making process within the fixed-income market in 2020.
As of 2018, there are over 1,380 signatories to the United Nations’ Principles for Responsible Investment (PRI) from over 50 countries.
The statistic indicates that as of 2018, there are more than 1,380 organizations or entities that have signed on to the United Nations’ Principles for Responsible Investment (PRI) from a wide range of over 50 countries worldwide. This signifies a significant global interest and commitment to integrating environmental, social, and governance (ESG) factors into investment practices. By signing on to the PRI, these organizations are publicly demonstrating their dedication to responsible investment practices that consider not only financial returns but also the broader impact on society and the environment. The diversity of signatories across countries suggests a growing recognition of the importance of sustainable and ethical investment strategies in the global finance sector.
The creation of global ESG funds grew by 168% in the first quarter of 2020 compared to the previous year.
The statistic indicates a significant increase in the creation of global environmental, social, and governance (ESG) funds during the first quarter of 2020 compared to the same period in the previous year. Specifically, the growth amounted to an impressive 168%, pointing to a notable surge in investor interest and allocation towards ESG funds. This increase likely reflects growing awareness and prioritization of sustainability and ethical considerations among investors, as well as a response to global challenges such as climate change and social inequality. The data suggests a shifting trend towards more socially responsible investing practices, highlighting the increasing integration of ESG factors into investment decision-making processes.
Climate-focused ETFs grew 151% from December of 2019 to 2020.
The statistic indicates that the total assets under management in climate-focused Exchange-Traded Funds (ETFs) increased by 151% from December 2019 to 2020. This substantial growth suggests a heightened investor interest in environmentally sustainable and socially responsible investment opportunities. The surge in assets allocated to climate-focused ETFs reflects a growing recognition of the significance of climate change and the desire to support companies that are actively working towards mitigating environmental impact and promoting sustainability. This growth trend highlights the increasing influence of environmental considerations in investment decision-making and signifies a shift towards more sustainable and responsible investment strategies in the financial markets.
As of 2020, 77% of institutional investors plan to stop purchasing investments that are not ESG friendly.
The statistic indicates that as of 2020, 77% of institutional investors have expressed an intention to discontinue purchasing investments that do not meet environmental, social, and governance (ESG) criteria. This signifies a growing trend among institutional investors towards more socially responsible and sustainable investing practices, where factors such as the company’s impact on the environment, its social responsibility initiatives, and its governance practices are taken into consideration along with financial performance. This trend reflects a shift towards aligning investment decisions with ethical and sustainable values, potentially influencing companies to improve their ESG performance to attract investment from these institutions.
ESG-related regulation has nearly doubled over the last six years.
The statistic that ESG-related regulation has nearly doubled over the last six years indicates a significant increase in the number and scope of regulations related to environmental, social, and governance (ESG) issues. This suggests a growing recognition by governments and regulatory bodies of the importance of incorporating ESG considerations into business practices and decision-making processes. The doubling of ESG-related regulation signals a shift towards more sustainable and responsible business practices, as well as an increased focus on addressing issues such as climate change, social inequality, and corporate governance. This trend is likely to have implications for companies across various industries, requiring them to adapt their operations and policies to comply with the evolving regulatory landscape and meet the growing demand for ESG reporting and transparency.
More than 90% of companies in the S&P 500 Index now publish sustainability reports, up from just 20% in 2011.
The statistic indicates a significant increase in the number of companies within the S&P 500 Index that are now publishing sustainability reports. Specifically, more than 90% of these companies are engaging in the practice, a substantial rise from only 20% in 2011. This suggests a growing recognition among corporations of the importance of integrating sustainability disclosures into their reporting practices. This trend aligns with the increasing emphasis on environmental, social, and governance (ESG) factors by investors, regulators, and other stakeholders in evaluating a company’s long-term performance and impact. The shift towards increased transparency and accountability in sustainability reporting reflects a broader movement towards sustainable and responsible business practices within the corporate sector.
The S&P 500 ESG Index outscored the traditional S&P 500 by 1.9% in 2020.
The statistic “The S&P 500 ESG Index outscored the traditional S&P 500 by 1.9% in 2020” indicates that the S&P 500 ESG (Environmental, Social, and Governance) Index performed better than the traditional S&P 500 Index by 1.9% over the course of the year 2020. This suggests that investments in companies included in the ESG Index, which adhere to certain environmental, social, and governance criteria, yielded higher returns compared to investments in the broader S&P 500 Index. This outperformance could be attributed to factors such as growing investor interest in sustainable and responsible investing practices, as well as the potential benefits of integrating ESG considerations into investment strategies for long-term performance and risk management.
More than 570 ESG exchange-traded funds and exchange-traded products were listed in 35 countries, gathering net inflows of $38.8 billion in 2019.
The statistic indicates that in 2019, there were over 570 ESG (Environmental, Social, and Governance) exchange-traded funds and exchange-traded products listed across 35 different countries. These ESG-focused investment vehicles gathered a total of $38.8 billion in net inflows throughout the year. This data highlights the increasing global trend towards sustainable and socially responsible investing, as investors are increasingly seeking to align their investment strategies with ESG principles. The significant amount of net inflows also suggests a growing interest and confidence in ESG investments as a viable and profitable investment option.
Conclusion
Overall, the global ESG industry is rapidly growing and evolving, with increasing recognition of the importance of environmental, social, and governance factors in investment decision-making. The statistics presented in this blog post highlight the significance of ESG practices and how they are becoming mainstream across various sectors. It is clear that investors, companies, and policymakers alike are increasingly focusing on ESG metrics to drive sustainable and responsible business practices in the future.
References
0. – https://www.www.forbes.com
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2. – https://www.www.morningstar.co.uk
3. – https://www.www.jdsupra.com
4. – https://www.www.morningstar.com
5. – https://www.www.ussif.org
6. – https://www.www.morningstar.fr
7. – https://www.www.insurancejournal.com
8. – https://www.www.natixis.com
9. – https://www.apcoworldwide.com
10. – https://www.www.bloomberg.com
11. – https://www.equileap.com
12. – https://www.iif.com
13. – https://www.www.spglobal.com
14. – https://www.www.researchandmarkets.com
