How big is the ESG fund market? (2024)

How big is the ESG fund market?

The global Environmental Social and Governance ESG Investing Market size is expected to record a CAGR of 9.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 17.2 Trillion. By 2032, the valuation is anticipated to reach USD 46.5 Trillion.

How big is the ESG investment market?

The global Environmental Social and Governance ESG Investing Market size is expected to record a CAGR of 9.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 17.2 Trillion. By 2032, the valuation is anticipated to reach USD 46.5 Trillion.

How big is the ESG rating market?

How much is the ESG market worth?

Sustainable investment is a way for investors to make a return while fighting climate change and social inequalities. At the end of 2022, the market for ESG (Environmental, Social and Governance) investing totaled 2.5 trillion dollars. And it is still growing.

What percentage of investors consider ESG?

Some 53% of private investors consider ESG factors when investing, but its popularity has declined slightly since 2021, according to the latest annual ESG Attitudes Tracker from the Association of Investment Companies (AIC).

How big is ESG investing in the US?

The 2022 review, published on Wednesday, shows that investors had $30.3 trillion in sustainable assets, down from $35.3 trillion in 2020. In the US, investments in sustainable assets fell to $8.4 trillion last year from just over $17 trillion two years earlier, according to the GSIA report.

Who are the biggest investors in ESG?

How many investors prefer ESG?

Nearly two-thirds (63%) of global investors prefer active funds to integrate ESG.

How many investors use ESG ratings?

65 percent of investors declare to use ESG assessments on a regular basis, at least once a week.

Who owns ESG today?

Nobody “owns” ESG today, since responsibility for ESG spans the entire enterprise and no individual can make ESG happen on their own. While a leader can set a vision and strategy, only a cross-functional team can deliver it.

How profitable is ESG?

We find that ESG performance has a positive and highly significant relationship with firm value and profitability with a coefficient of 0.008 and 0.049 respectively.

Does ESG investing really work?

ESG funds have similarities to other funds

While the results from these time periods have been generally encouraging for ESG funds as a whole, we don't see convincing evidence that ESG funds are reliably better than non-ESG funds.

Why is everyone investing in ESG?

ESG investing focuses on companies that follow positive environmental, social, and governance principles. Investors are increasingly eager to align their portfolios with ESG-related companies and fund providers, making it an area of growth with positive effects on society and the environment. S&P Global.

How much does ESG affect stock price?

The positive correlation between ESG performance and stock price synchronicity. ESG performance improves stock price synchronicity by reducing information asymmetry. The “noise reduction” effect of ESG performance is significantly lower in non-state-owned enterprises and enterprises with low investor trust.

How many Fortune 500 companies have ESG reports?

More Reporting, More Use of Standards

ESG reporting is on the rise. Out of the 500 companies, 494 had reported ESG information to some degree, which is 30 more companies than the previous year and approximately 99% of the S&P 500. Effective ESG reporting requires the use of common standards.

What is the ESG backlash?

The emphasis placed on the need for sustainability has caused a commensurate backlash – an anti-ESG movement that (wrongly) believes a focus on better business must automatically result in worse profits.

What is the outlook for ESG funds?

With a projected compound annual growth rate (CAGR) of 12.9%, ESG assets are on pace to constitute 21.5% of total global AuM in less than 5 years. It represents a dramatic and continuing shift in the asset and wealth management (AWM) industry according to PwC's Asset and Wealth Management Revolution 2022 report.

Is ESG going to be big?

ESG assets will hit $50 trillion by 2025, representing more than a third of the projected $140.5 trillion in total global assets under management, according to Bloomberg.

What are the statistics of ESG funds?

ESG statistics: Highlights

76% of consumers will stop buying from companies that treat the environment poorly. 88% of consumers will be more loyal to companies that support social and environmental initiatives. 88% of publicly traded companies had an ESG initiative as of 2020.

Who rates ESG funds?

Launched in 2010, MSCI ESG Research is one of the largest independent providers of ESG ratings, providing ESG ratings for over 6,000 global companies and more than 400,000 equity and fixed-income securities.

What do investors think about ESG?

Investors are increasingly interested in ESG criteria for evaluating business because higher ESG performance correlates with higher returns, lower risk, and long-term business sustainability.

Do Americans care about ESG?

More than three quarters of Americans are not familiar with or don't have a good understanding of what ESG actually means, according to a new survey. Among those who do, there's a divide between anti-ESG political rhetoric and growing advocacy from young people.

Which companies are best at ESG?

What is the public opinion of ESG?

Fifty-nine percent of people said they had no views on ESG investing, while 22% had favorable opinions, and 19% negative ones. But among those who said they were familiar with ESG, 36% viewed it positively, 35% negatively and 29% neutral, according to Gallup.

Who controls ESG?

In conclusion… In conclusion, ESG scores are set by companies themselves, The ESG score is not determined by any regulatory agency, but rather it is a score that reflects an organization's own commitment to environmental stewardship and social responsibility.