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Reaching over $35 trillion, environmental, social, and governance (ESG) AUM soared in 2021 from 2016’s $22.8 trillion. Projected to reach $50 trillion by 2025, sustainably targeted assets have proven to be more than “a bubble”. Behind the immense rise in total assets, investments in sustainable mutual funds and ETFs rose by 53% to $2.7 tillion in 2021. Alongside these funds, sustainable debt such as bonds and loans have amounted to over $1.6 trillion in 2021, surpassing $4 trillion.
The asset management industry has collected $1.8 billion in fees from sustainable funds alone in 2021. Investors are happy to pay if they believe their money is making an impact on the planet, but how are asset managers showing investors proof of impact behind their investments? They are not.
The recent upswing in sustainable investment capital is one large step in the right direction, but additional progress is needed. Investors have begun to question the true sustainability metrics of their portfolio, asking questions such as “Can you prove the impact of my investments?”, but many investors cannot show any data beyond an ambiguous ESG score. ESG scores can tell you a very broad story, but with Physis we can answer these difficult questions with live data. Physis Investment specializes in proving the impact of a portfolio using transparent and digestible data. Collecting from over 15 data providers, in-house research, and using machine learning to collect data from countless company reports, Physis’ data library is extremely robust. From emission data, to gender equality, Physis can tell you the story of your investment from the day of your first investment, providing understandable data behind any metrics important to your investors.
As investors allocate trillions of dollars into sustainable assets, the U.S. SEC is looking to ensure that those funds are truly making an impact. As a result, sustainable reporting regulations are developing for asset allocators to prove the impact of their investments. Similar compliance regulations have been set in the European Union as a part of their Sustainable Finance Disclosure Regulation (SFDR). This idea may sound daunting to asset managers, investment advisors and other investors, but Physis Investment offers a seamless solution to these problems.
Physis makes compliance one-click away with our instantaneous PDF reports, click to share feature, and live impact data. We offer sustainable data that will ensure upcoming regulations are met with ease.