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Global Sustainable Investement Alliance

The size of the European market is driven by a higher proportion of assets taking into account ESG considerations in the overall asset management industry relative to the other regions. As shown in Figure 3, asset managers engaged in strategies incorporating ESG considerations account for as much as 49 percent of European professionally managed assets4, compared with 11.2 percent of professionally managed assets in the United States and less than 3 percent of the corresponding assets in Asia. The market share in Canada and Australia/New Zealand falls in a middle range of 20 and 18 percent respectively. Looking beyond the totals, Figure 4 shows the amount invested globally in each of the seven strategies, which together make up the total sustainable investment assets. Two methodological issues should be noted about these figures. First, the sum of these individual approaches is greater than the figure for total assets incorporating ESG considerations because many investors use more than one strategy. In Figure 4, if an investor reports using two strategies for certain assets, the assets are counted twice (once in each strategy) whereas the regional totals in Table 1 have eliminated this double counting. Second, the figures for impact/community investing and corporate engagement/shareholder action are not entirely comparable across regions, as discussed later. Figure 4 shows the amounts of assets covered globally by the various strategies, stacked by region. With these caveats in mind, the most common strategy used globally is negative/exclusionary screening (US$ 8.3 trillion)6. ESG integration (US$ 6.2 trillion) and corporate engagement/ shareholder action (US$ 4.7 trillion) are the next two most widely applied strategies. Sustainability themed investing 83 Impact/community investing 89 Positive/best-in-class screening 1,013 Norms-based screening 3,038 Corporate engagement and 4,689 shareholder action Integration 6,176 Negative/exclusionary screening 8,274 0 2000 4000 6000 8000 $US Billion Europe United Canada Australia Asia Japan Africa States NZ ex-Japan Figure 4. Global sustainable investments by strategy and region5 4 This figure represents the aggregation of all SRI strategies reported in the European SRI Study 2012 without double counting, and is presented in order to be consistent with the methodology of this global report. Please note however that this figure is not used in the European study as there is no single European definition of what sustainable investing is. 5 Note that in Europe, exclusions mandated by legislation are not counted. If these were included the figure would be higher. See European section for more information. 6 Please note that the US and African figures for screening (positive and negative) and integration are minimum values, as not all respondents have specified a detailed strategy. Global Sustainable Investment Review 2012 11


Global Sustainable Investement Alliance
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