In terms of Sri market, Europe and United States together account for much more than half of the world: just look at the first world map of Sri published about two years ago (surely to be updated soon). But for the headline of this post ‘half’ was nice (pardon me).
So, let’s say that the last two reports published in recent weeks by Eurosif and UsSif can be considered a kind of ‘half the world’ map of Sri. And let’s see in a nutshell what these reports say, although the one from Eurosif is available in full version for free, whilst the one from UsSif is not (for free you can read a large executive summary, but not the full report). They are both must-read reports, I think, for those who are interested in the worldwide evolution and the main trends of the Sri market.
European Sri Study in its 6th edition (the 1st in 2003) shows that all Sri strategies covered by the study (they’re 7: sustainability themed, best-in-class, exclusion, norms-based, Esg integration, engagement and voting, impact investing) have grown at double-digit rates between 2011 and 2013, a growth anyway faster than the one referred to the broad European investment market.
Eurosif gives not a figure for the total Sri market in Europe (13 Eu countries have been considered), it provides figures for each of the covered Sri strategies. For instance, assets managed using strategies of exclusion amount to 6.9 trillion euro (+ 91% in two years), with exclusions covering more assets than any other strategy. Strategies that use policies of engagement and voting amount to 3.3 trillion euro (+ 86%). Impact investments have grown to an estimated 20 billion euro market (+132%, moreover a figure “certainly underestimated”). Systematic Esg integration (pay always attention to definitions when reading this kind of reports) amount to a minimum of almost 2 trillion euro.
Now let’s come to the US Sustainable, Responsible and Impact Investing Trends report, in its 10th edition (the 1st in 1995). As the title states, the report explicitly considers Sri and impact together. And it gives a figure for the total market, which have expanded 76% in two years, and now (start 2014) amounts to 6.57 trillion dollar. It means that assets managed with Sri strategies account for more than 1 out of 6 dollars under professional management in the US.
What I was very pleased to note is that inside the report from UsSif the fossil fuel divestment movement has room. Introducing the executive summary, the Ceo of UsSif, Lisa Woll, underlines that the movement is one of the two “developments of note” since the last report in 2012. There’s a section in chapter 3 devoted to “Fossil Fuel Divestment Initiatives”. And the executive summary also gives some figures about it: fossil fuel restriction or divestment policies account for 29.4 billion in money manager assets and 13.5 billion in institutional investors assets (start 2014). But above all the report says that in 2014 momentum around fossil-free investments has continued to growth: mondosri noticed, too.