Sustainable investing has gone from a niche investment idea to attracting enough capital to start having an impact on global challenges at a meaningful scale, reported Morgan Stanley’s 2018 Sustainable Signals.
The report revealed that among institutional asset owners, sustainable investing is increasingly pursued for its potential to manage risk and drive returns.
Globally, more than $22.8 trillion are invested sustainably, representing more than $1 in every $4 under professional management.
Approximately 84 percent of asset owners are pursing or considering ESG integration in their investment process and 78 percent of asset owners seek to align with the UN Sustainable Development Goals (SDGs). Sustainable investing is growing at an annual compound rate of 11.9 percent, according to Morgan Stanley.
The survey polled 118 public and corporate pensions, endowments, foundations, sovereign wealth entities, insurance companies and other large asset owners worldwide and gathered insights about trends, motivations, challenges and implementation approaches in sustainable investing.