Responsible Investing Assets Grow


    Strong investor demand and rising concern about climate change have led to growth of 25 per cent in global assets under management (AUM) in responsible or sustainable investments since 2014, says a report by the Global Sustainable Investment Alliance. The report, which details the global landscape for responsible investing (RI), indicates that $22.9 trillion of assets is being professionally managed under RI strategies worldwide. The region showing the fastest growth has been Japan, followed by Australia/New Zealand, and Canada. In terms of AUM, Europe is the biggest market for responsible investing, followed the U.S. and Canada, respectively. In Canada, the RI market has grown by 49 per cent to $1.09 trillion from $729 billion in two years. In relative terms, it says 38 per cent of total professionally managed assets use RI strategies and the dominant sustainable investing strategy in 2016 was ESG integration, followed by corporate engagement and shareholder action. As well, recent policy developments in Canada could help drive further growth in responsible investing, says the report.