Assets classified as responsible investments (RI) surged 61 percent worldwide over the past two years amid increasing awareness of sustainability issues, a rise in related shareholder proposals and other factors, according to the Global Sustainable Investment Alliance.
RI assets totaled $21.4 tn at the start of 2014, compared with $13.3 tn at the start of 2012, says the Global Sustainable Investment Review 2014, which includes data from sustainable investment organizations in Europe, Asia-Pacific and North America. RI now accounts for 30.2 percent of all professionally managed assets in the regions covered, compared with 21.5 percent two years ago.
‘The review shows that responsible investment is growing worldwide,’ says Deb Abbey, CEO of the Responsible Investment Association, in a press release. ’In Canada alone, we saw 68 percent growth over two years. This is part of a trend we’re seeing globally as investors become increasingly aware of the value of incorporating ESG issues into investment decisions.’
Europe’s share of RI grew to cover 58 percent of all professionally managed assets in the region this year, compared with 49 percent two years ago, further cementing the continent’s lead in sustainable investment, according to the review. In Canada, RI assets grew to 31.3 percent of all assets from 20.2 percent while the US saw its RI assets expand to 17.9 percent of the total from 11.2 percent.
Asia continues to lag, with RI accounting for only 0.8 percent of all professionally managed assets in the region, up only slightly from 0.6 percent at the start of 2012 when the first review was conducted. In Australia, RI assets grew to 16.6 percent of the total from 12.5 percent.
