By the start of 2020, global sustainable investment reached USD35.3 trillion in five major markets, a 15% increase in the past two years (2018-2020).
Sustainable investment assets under management make up a total of 35.9% of total assets under management, up from 33.4% in 2018.
Sustainable investment assets are continuing to grow in most regions, with Canada experiencing the largest increase in absolute terms over the past two years (48% growth), followed by the United States (42% growth), Japan (34% growth) and Australasia (25% growth) from 2018 to 2020. Europe reported a 13% decline in the growth of sustainable investment assets in 2018 to 2020 due to a changed measurement methodology from which European data is drawn for this year’s report. This reflects a period of transition associated with revised definitions of sustainable investment that have become embedded into legislation in the European Union as part of the European Sustainable Finance Action Plan.
Canada is now the market with the highest proportion of sustainable investment assets at 62%, followed by Europe (42%), Australasia (38%), the United States (33%) and Japan (24%).
The United States and Europe continue to represent more than 80% of global sustainable investing assets during 2018 to 2020.
The most common sustainable investment strategy is ESG integration, followed by negative screening, corporate engagement and shareholder action, norms-based screening and sustainability-themed investment.