Sustainable Investing by the Numbers
5 min read
- Sustainable Investing aims to benefit people and the planet
- The sustainable market is growing
- Major players are getting on board
What is Sustainable Investing?
Similar to traditional investing, you manage risk while seeing a positive financial return. However, you also consider Environmental, Social, and Governance (ESG) factors in your decision making. Utilizing ESG makes investing account for people and the planet. The main point is to have a positive impact with your money and to make the world a better place.
The Market is big and keeps growing
There are a couple of different estimates, in regards to how big the sustainable investment sector is. Some estimates say that about $1 in every $4 under professional asset management in the U.S. is invested in sustainable investing. In addition, they claim that 70% of all institutional investors now incorporate ESG factors. The Global Sustainable Investment Alliance has said that Sustainable, Responsible Investing (SRI) strategies have $12 trillion of assets under management in the U.S. out of the $30.7 trillion globally. The ESG space is undeniably growing.
Is it Just a Trend? NO.
Large investors and organizations are all starting to invest responsibly. The largest group may be those that signed the United Nations Principles for Responsible Investment (UNPRI). Almost 2,000 signatories have pledged that their $90 trillion in global assets will consider ESG factors and disclose climate risk. Almost 900 companies have joined the We Mean Business Coalition and committed to supporting the Paris Climate Agreement. The UN Business Call to Action platform for the Sustainable Development Goals (SDGs) has collected commitments from over 200 companies to make products accessible to the poor. This is sure to have a global impact. This all shows that there is significant market momentum swinging towards sustainability.
How Can I Participate? With Physis Investment!
That’s right! Our unique investment methodology allows you to invest your money in the sustainability issues you most care about. We help you invest responsibly by directly showing you the impact that your money has. Let’s make the world more sustainable!
References:
Morgan Stanley