Forms of sustainable finance have grown rapidly in recent years, as a growing number of institutional investors and funds now incorporate various Environmental, Social and Governance (ESG) investing approaches. This growth has been spurred by shifts in demand from across the finance ecosystem, driven both by the search for better long-term financial value, and a pursuit of better alignment with values.
In 2020, ESG assets were estimated at $40.5 billion or almost twice that of the level four years earlier. Europe still leads the way, being home to approximately 80% of all global ESG-themed funds but the US is growing at a significant pace. By 2025, ESG assets could represent as much as a third of overall assets under management.
Sustainable investing now spans a wide range of products and asset classes, embracing not only public equity investments but also fixed income, cash, and alternative investments such as private equity, venture capital and real estate. Its strategic importance in the asset management industry can no longer be overlooked which is why Norman Alex has established an ESG focus group to track the key players and investment trends in the sector. This enables us to help our clients recruit the best talent and advise them on the best ways to develop their ESG activities.