Global growth in sustainable investment funds to double in 2021

Sustainability

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Investments in the environmental, social, and governance-based (ESG) landscape are expected to remain on a growth trajectory in 2021, the Warsaw Business Journal reports.

According to the research data analyzed and published by ComprarAcciones.com, ESG funds will double in 2021. Over 12% of investors who have yet to invest in ESG will start investing during the year, driving the uptick. An additional 17% will make the move in 2022 or thereafter, sustaining growth. 

Based on a study by Morningstar, there was a massive surge in ESG funds in 2020. In Q4 alone, ESG assets under management rose by 29 percent reaching USD 1.7 trillion. 

The growing interest in sustainable funds in 2020 was linked to investors' search for resilient investments. Governments are increasingly pushing for shifts to a lower-carbon economy, favoring the sector. 

In Q4 2020, funds flowing into ESG investments surged by 88% to USD 152.3 billion. Europe led the global growth, accounting for about 80% of the worldwide total at USD 120.8 bln. The United States was second with a 13.4% share or USD 20.5 bln. Funds across Asia, New Zealand, Canada, and Australia amounted to USD 11 bln.

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