ADVERTISEMENT

Global growth in sustainable investment funds to double in 2021

Sustainability

Photo by one photo / Shutterstock.com

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.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.