Sustainable Strategies Continue To Grow

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    The amount of assets in sustainable investment strategies continues to grow globally, albeit at a slower pace than previous years, says the Global Sustainable Investment Alliance’s biennial report. Assets invested in sustainable strategies rose to $22.89 trillion globally at the beginning of 2016, up 25 per cent from the start of 2014. They account for 26 per cent of all professionally managed assets globally. By comparison, sustainable assets grew 61 per cent globally between 2012 and 2014.Canada had $1.09 trillion in sustainable assets under management (AUM) at the start of 2016, up 49 per cent. In comparison, Europe had $12.04 trillion, up 12 per cent from 2014; and the U.S., $8.72 trillion, up 33 per cent. The report attributes Canada’s growth in sustainable AUM to money managers’ increasing focus on sustainable investing, an increasing awareness of ESG long-term risks and opportunities and the rise of millennial investors who are more likely to consider ESG factors in their investment decision-making. The most common sustainable investing strategies globally remain negative/exclusionary screening.