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$6.57 Trillion in the U.S. Alone!
By Michael Schweibinz

Every other year, the US SIF Foundation reports on key trends in the sustainable, responsible, impact (SRI) investing space. US SIF found that roughly one in every nine dollars in professionally managed investment assets in 2012 was in a portfolio characterized as SRI. That year was a historic year for the SRI industry; but now the 2014 numbers are in—and they are astonishing.

According to the 2014 Trends Report, “the total U.S.-domiciled assets under management using SRI strategies expanded from $3.74 trillion at the start of 2012 to $6.57 trillion at the start of 2014, an increase of 76%.”

By 2014, SRI assets reached nearly 18% of the $36.8 trillion in total assets under management (up from 11.2% in 2012)!

ESG Integration

The integration of environmental, social, and corporate governance factors into investment decision making continues at a dramatic pace. “These assets, excluding assets of separate account vehicles and community impact investing institutions, have increased to $4.31 trillion in 925 distinct ESG funds in 2014, more than four times the $1.01 trillion tracked in 2012.”


Beyond the numbers, the 2014 Trends Report dives into multiple facets of the responsible investing space. US SIF illustrates how consumer demand has, and is, shifting business and institutional investing strategies. The desire to go ‘green’ has radically altered capital allocation. The growth in assets under management is a direct correlation to the success of the industry and the strengthening desire to invest responsibly.

And the growth of responsible investing continues apace around the world. In 2014, a similarly organized study documented significant growth in responsibly investing assets in Europe. And just last week, the Responsible Investment Association based in Toronto released a new Canadian Trends Report which counted over $1 trillion in responsibly invested portfolios just to our north. SRI—Sustainable, Responsible, Impact—investing is no longer a small investment niche.

 

 

At First Affirmative, we understand that the ways we save, spend, and invest can dramatically influence both the fabric and consciousness of society. We believe that in addition to the benefits of ownership, investors bear responsibility for the impact our money has in the world. Are you making conscious decisions about the impact of your consumer purchase and investment decisions?

 

Posted: February 2, 2015