US SIF 2016 Trends
The Forum for Sustainable and Responsible Investment (US SIF) published their 11th report on Sustainable, Responsible and Impact Investing trends. Many impact veterans will be familiar with this two yearly research effort which has been publishing since 1995. The full 2016 Report on US Sustainable, Responsible and Impact Investing Trends comes with a $225 Dollar price tag, however, you can review the Executive Summary for free. It’s a must read for any impact investor, as many regard is as the most detailed and meaningful study of sustainable and impact investing available. Some key findings:
- Sustainable, responsible and impact (SRI) investing assets in the US increased from US$ 6.57 trillion in 2014 to US$ 8.72 trillion today in the United States. This is a 33% increase. One in five dollars that is professionally managed in the US now goes towards sustainable, responsible and impact (SRI) investing. The growth is predominately driven by large asset mangers, who now consider environmental, social or corporate governance (ESG) criteria across $8.10 trillion in assets, up 69% from US$ 4.8 trillion in 2014.
- The two key focus areas from institutional investors and their money managers is conflict risk and climate change.
- The top reasons managers report incorporating ESG factors include client demand (85%), mission (83%), risk (81%), returns (80%), social benefit (79%) and fiduciary duty (64%).
- The number of investment vehicles and financial institutions incorporating ESG criteria continues to grow and includes mutual funds, variable annuities, ETFs, closed-end funds, hedge funds, VC/private equity, property/REIT, other pooled investment vehicles, and community investing institutions.
Do check out their website as they also publish fast facts and quick link section that contains interesting and useful information.