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 market in Bloomberg?

London, 8 January 2024 – Global ESG assets surpassed $30 trillion in 2022 and are on track to surpass $40 trillion by 2030 — over 25% of projected $140 trillion assets under management (AUM) according to a latest ESG report from Bloomberg Intelligence (BI).

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).

Why ESG funds underperform?

“When ESG funds underperformed in 2022, we blamed it on their energy underweight,” said Ma. “But a second consecutive year of underperformance in 2023 can no longer be easily brushed aside.” In 2023, ESG funds were dragged down by too much exposure to clean tech and not enough to big tech.

How big is the ESG sustainability market?

The India ESG and sustainability consulting market was valued at USD 255.21 million in 2021 & is expected to grow at a CAGR of 7.42% from 2022-2030.

How big is the global ESG reporting market?

ESG Reporting Software Market Size is valued at USD 0.71 Bn in 2022 and is predicted to reach USD 2.25 Bn by the year 2031 at a 13.86% CAGR during the forecast period for 2023-2031.

What is the market share of ESG ETF?

The ESG ETFs account for only 2.8 % of the total ETF market. However, as of 2022, the total assets under the management of ESG ETFs is approximately 61 billion USD (Figure 1).

Who are the biggest ESG funds?

What is the ESG reporting market worth?

360 Market Updates new survey, estimate that the ESG Reporting Services market was worth US$ 976 million in 2022 and would increase to US$ 1934 million by 2031 with a (Compound Annual Growth Rate) CAGR of 10.3% during 2024 to 2031.

What are the statistics of ESG funds?

The value of assets allocated to ETF funds, which included environmental, social, and governance (ESG) goals in their strategy, increased markedly from five billion U.S. dollars in 2006 to 391 billion U.S. dollars in 2021. As of November 2023, allocated assets reached 480 billion U.S. dollars.

Do 85% of investors consider ESG?

Overall, the survey found that 85% of investors think ESG leads to “better returns, resilient portfolios and enhanced fundamental analysis.” Among executives surveyed, 84% said ESG helps them “shape a more robust corporate strategy,” according to Adeline Diab, BI's director of ESG strategy and research.

What are the average returns for ESG investing?

Globally, ESG Leaders earned an average annual return of 12.9%, compared to an average 8.6% annual return earned by Laggard companies. This represents an approximately 50% premium in terms of relative performance by top-rated ESG companies.

What is the dark side of ESG?

ESG investing's dark side threatens to undermine clean-tech strategies amid ravenous demand for metals: 'We should be under no illusion' Wind turbine manufacturers and EV makers are “massively exposed” to the systemic risks that stem from the link between mining and the clean-energy industry.

What is the controversy with ESG investing?

Critics portrayed ESG investing as primarily motivated by political concerns and a potential drag on returns. Additionally, some critics have raised concerns about the complexity and reliability of ESG metrics.

Are ESG funds doing well?

ESG funds have performed fine during market drops

The table below shows the performance of ESG funds compared to their Morningstar category averages during the last six corrections (a drop of 10% in the stock market) and two bear markets (a drop of more than 20%).

What are the big 4 of ESG?

In this context, the Big 4 accounting firms - Deloitte, PwC, Ernst & Young (EY), and KPMG - play a pivotal role in shaping corporate strategies, reporting practices, and, ultimately, the sustainability divide.

Why is ESG booming?

Investors are demanding ESG Investments:

The shift to sustainable investing is so powerful because it's being driven by demand from investors. Investors – from individual savers to large institutions – are investing in sustainable strategies as they look to use their capital to help create a more sustainable world.

Is ESG too broad?

ESG has come under fire for being overly broad and underperforming as a predictive measure of robust financial returns. Many are calling out the prevalence of greenwashing, where companies exaggerate the environmental impact of their actions.

How many investors prefer ESG?

89 percent of investors consider ESG issues in some form as part of their investment approach, according to a 2022 study by asset management firm Capital Group. 31 percent of European investors say ESG is central to their investment approach, compared with 18 percent of investors in North America, Capital Group found.

What country has the best ESG score?

As of Autumn 2021, the Scandinavian countries continued to sustain their global sustainability leadership. With an ESG score of 8.91, Finland tops the current ranking for the first time, ahead of its Nordic neighbours Sweden, Denmark, Norway and Iceland.

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.

How big is the ESG ETF?

Executive summary. Total ESG ETF assets are $449.5 bln as of February, 2023. The yearly net flows into ESG ETFs increased 36 times: from $4.7 bln in assets under management in 2014 to $169 bln in 2021.

What is the S&P 500 ESG index?

EXECUTIVE SUMMARY. • The S&P 500 ESG Index aligns investment objectives with. environmental, social, and governance (ESG) values. • It can serve as a benchmark as well as the basis for index-linked. investment products.

How many ESG ETFs are there in the US?

With 50 ETFs traded on the U.S. markets, ESG ETFs have total assets under management of $83.62B. The average expense ratio is 0.41%. ESG ETFs can be found in the following asset classes: Equity.