There has been strong growth in the European sustainable and responsible investment market over the past two years, with impact investments particularly buoyant, according to new research from industry body Eurosif.
Brussels-based Eurosif, the pan-European membership organization, has released its seventh biennial market study and has found “double-digit growth” for SRI.
The growth ranges from 30% for stewardship (Engagement & Voting) to 385% for Impact Investment, Eurosif says, adding: “SRI is growing faster than the broad European investment market (25%) with retail investors returning to the market (up 549% since 2013).
Eurosif is holding a launch event today and says that – for the first time – the study features endorsements from academia, scientific committees, investors and regulators. It is “highlighting the extent to which SRI has become one of the major tools for financing the shift to a more sustainable economy”.
The report finds that Sustainability Themed investments have grown by 146%, with the most assets under management in France at €43bn.
Exclusions are still the most popular SRI approach with over €10trn of assets under management, showing a 48% increase. Leading countries are Switzerland, with €2.5trn and the UK and Germany with almost €1.8trn.
“A clear reflection of the growing investor interest in SRI”
“This is in line with a wave of divestments that has been fueled by the climate change debate,” Eurosif said.
Norms-based screening has now become the second most significant SRI approach with over €5trn Assets under Management and a growth rate of 40%. France dominates with €2.6trn.
But Impact Investing is the fastest growing SRI strategy up to 385% with €98bn, from only €20bn in 2013. The Netherlands leads with over €40bn. This growth is supported by the significant rise in Green Bonds.
“The findings of this year’s study are a clear reflection of the growing investor interest in SRI,” said Eurosif Executive Director Flavia Micilotta, adding it supports the heightened focus on sustainable and green finance that is increasingly shaping the agenda of EU regulators. Link