ESG Investing’s Growing Influence

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ESG Investing’s Growing InfluenceAccording to the Global Sustainable Investment Alliance , there were nearly $23 trillion in assets being professionally managed under responsible investment strategies at the end of 2016. That was about 26% of all professionally managed assets globally.

The number of signatories to the Principles for Responsible Investment (PRI) , the world’s leading advocate for responsible investing, has grown from 100 at its launch in 2006 to approximately 1,800 today. What’s driving the growth of ESG investing? Chew cited several factors:

  • Improved risk-adjusted returns
  • Growing influence of consultants
  • Increasing demand from millennials
  • Compliance with public policy initiatives
  • Evolution of fiduciary duty