Topic: ESG investing (2024)

Raising awareness to environmental, social, and governance (ESG) issues and targeting goals beyond maximizing profits and minimizing risks is a growing trend around the world, also within investing, which has generated large inflows of assets into ESG funds in recent years. Applying non-financial factors into the investment process is a response to global challenges such as climate change and inequalities, with the aim to have a positive impact on society - although environmental factors are the main focus for most ESG investments. It is more and more becoming the standard in the investment industry, especially in Europe, where most of the sustainable fund’s assets are concentrated. The most common approach to investing sustainably is through ESG integration - by explicitly and systematically factoring ESG issues into the investment decision. This approach is creating impact by forcing companies to report how they are dealing with important environmental, social, and governance topics.

What is driving the growth of ESG investments?

The growth of sustainable investments is driven by several factors: from the politicization of ESG, impact on risk and return, from investor demand, to influence corporate behavior, and keeping a good brand and reputation, just to name a few. Although some investors still believe that it might have a negative impact on risk and return, meaning they believe that the ESG portfolios will underperform compared to non-ESG portfolios, and they do not want to sacrifice investment performance. This unwillingness to accept lower return or increasing risk used to be the main barrier to wider adoption of ESG investing, but it is, however, becoming more acknowledged around the world that investments in sustainable securities such as funds can perform even better, or at least as well as non-ESG portfolios, and can help mitigate risk. The main reason keeping investors and firms from engaging with ESG today is due to factors, such as lack of knowledge, lack of comparability of ESG data across issuers, or regulatory or legal constraints.

How is ESG performance measured?

ESG impact is still hard to measure, despite around one third of invested assets being defined as sustainable, and despite the growing awareness to the topic. There are several score systems in use to measure the risks and effects of investments, such as the most widely used Sustainalytics, MSCI ESG ratings, and S&P Global (RobecoSAM), but there are also other third-party ratings or awards. These scores, or ratings, are the most common tools used by both institutional investors and fund selectors to help measuring the impact. They do, however, show significant divergence in many cases, even when being standardized and measuring the impact of one and the same company. There are also several different sustainability reporting frameworks to help enterprises communicate their impacts, although there are large differences between stock exchanges in which of these frameworks are being referenced. This divergence in ESG reporting prove that measuring ESG impact is hard, but not impossible, and many investors are calling for a more standardized reporting framework and regulation around the topic.

This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

Published by Statista Research Department, Mar 8, 2024

Key insights

Most referenced reporting framework by stock exchanges Global Reporting Initiative

Topic: ESG investing (1)

Detailed statistics

Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023

Most used tools to measure non-financial ESG performance Third-party rating

Topic: ESG investing (2)

Detailed statistics

Leading methods used by institutions to implement ESG worldwide 2023

Get more insights

Editor’s Picks Current statistics on this topic

Current statistics on this topic

Investment FundsMedian returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023

Related topics

Recommended

4
  • Green banking
  • Investment funds
  • Green bonds in Europe
  • Green finance and responsible investments in France

Recommended statistics

ESG assets

4
  • Premium Statistic Assets of sustainable funds worldwide Q2 2023, by region
  • Premium Statistic Global ESG ETF assets 2006-2023
  • Premium Statistic AUM of sustainable funds worldwide 2018-2023
  • Premium Statistic Average net sector weight of sustainable and traditional equity funds worldwide, 2023

ESG assets

  • Premium Statistic Assets of sustainable funds worldwide Q2 2023, by region

    Topic: ESG investing (6)

    Assets of sustainable funds worldwide Q2 2023, by region

    Asset size of sustainable funds worldwide as of the second quarter of 2023, by region (in billion U.S. dollars)

  • Premium Statistic Global ESG ETF assets 2006-2023

    Topic: ESG investing (7)

    Global ESG ETF assets 2006-2023

    Global ESG ETF assets from 2006 to November 2023 (in billion U.S. dollars)

  • Premium Statistic AUM of sustainable funds worldwide 2018-2023

    Topic: ESG investing (8)

    AUM of sustainable funds worldwide 2018-2023

    Assets under management of sustainable funds worldwide from 2018 to December 2023 (in billion U.S. dollars)

  • Premium Statistic Average net sector weight of sustainable and traditional equity funds worldwide, 2023

    Topic: ESG investing (9)

    Average net sector weight of sustainable and traditional equity funds worldwide, 2023

    Average net weight of sustainable and traditional equity funds worldwide in 2023, by sector

Top funds

8
  • Premium Statistic Leading sustainable funds in Europe Q4 2023, by net flows
  • Premium Statistic Leading sustainable funds in the U.S. Q4 2023, by net flows
  • Premium Statistic Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings
  • Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance
  • Premium Statistic Top ESG ETFs in the U.S. 2023, by total net assets
  • Premium Statistic Largest ESG ETFs by AUM in the Americas 2023
  • Premium Statistic Largest socially responsible ETFs in Europe as of January 2024, by fund size
  • Premium Statistic Leading socially responsible ETFs in Europe as of January 2024, by 1-year return

Top funds

  • Premium Statistic Leading sustainable funds in Europe Q4 2023, by net flows
  • Premium Statistic Leading sustainable funds in the U.S. Q4 2023, by net flows

    Topic: ESG investing (11)

    Leading sustainable funds in the U.S. Q4 2023, by net flows

    Leading 10 sustainable funds in the United States as of 4th quarter 2023, by net flows (in million U.S. dollars)

  • Premium Statistic Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings

    Topic: ESG investing (12)

    Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings

    Leading ESG ETFs in the United States as of September 2023, by net assets and number of holdings (in million U.S. dollars)

  • Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance

    Topic: ESG investing (13)

    Top ESG ETFs worldwide 2023, by YTD performance

    Top ESG exchange traded funds (ETFs) worldwide in 2023, by YTD performance

  • Premium Statistic Top ESG ETFs in the U.S. 2023, by total net assets

    Topic: ESG investing (14)

    Top ESG ETFs in the U.S. 2023, by total net assets

    Top ESG ETFs in the U.S. in 2023, by total net assets (in million U.S. dollars)

  • Premium Statistic Largest ESG ETFs by AUM in the Americas 2023

    Topic: ESG investing (15)

    Largest ESG ETFs by AUM in the Americas 2023

    Largest ESG ETFs in the Americas as of July 2023, based on assets under management (in million U.S. dollars)

  • Premium Statistic Largest socially responsible ETFs in Europe as of January 2024, by fund size

    Topic: ESG investing (16)

    Largest socially responsible ETFs in Europe as of January 2024, by fund size

    Largest socially responsible (SRI) ETFs in Europe as of January 2024, by fund size (in million euros)

  • Premium Statistic Leading socially responsible ETFs in Europe as of January 2024, by 1-year return

    Topic: ESG investing (17)

    Leading socially responsible ETFs in Europe as of January 2024, by 1-year return

    Leading socially responsible (SRI) ETFs in Europe as of January 2024, by 1-year return

ESG policies

6
  • Premium Statistic Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023
  • Premium Statistic Leading methods used by institutions to implement ESG worldwide 2023
  • Premium Statistic Impact of ESG politicization on institutional investing worldwide 2022
  • Premium Statistic Leading challenges facing firms when preparing ESG assurance worldwide 2023
  • Premium Statistic Frequency of ESG staff training among firms worldwide 2023
  • Premium Statistic Leading methods for ESG ETF evaluation among investors and firms worldwide 2023

ESG policies

  • Premium Statistic Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023

    Topic: ESG investing (18)

    Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023

    Share of reporting frameworks referenced in stock exchange ESG guidance worldwide 2023, by framework

  • Premium Statistic Leading methods used by institutions to implement ESG worldwide 2023

    Topic: ESG investing (19)

    Leading methods used by institutions to implement ESG worldwide 2023

    Leading methods used by institutions to implement environmental, social and governance (ESG) worldwide in 2023

  • Premium Statistic Impact of ESG politicization on institutional investing worldwide 2022

    Topic: ESG investing (20)

    Impact of ESG politicization on institutional investing worldwide 2022

    The degree to which politicization of ESG has impacted institutional investors worldwide in 2022

  • Premium Statistic Leading challenges facing firms when preparing ESG assurance worldwide 2023

    Topic: ESG investing (21)

    Leading challenges facing firms when preparing ESG assurance worldwide 2023

    Leading challenges facing firms when preparing environmental, social and governance (ESG) assurance worldwide in 2023

  • Premium Statistic Frequency of ESG staff training among firms worldwide 2023

    Topic: ESG investing (22)

    Frequency of ESG staff training among firms worldwide 2023

    Frequency of environmental, social and governance (ESG) staff training among firms worldwide in 2023, by ESG advancement level

  • Premium Statistic Leading methods for ESG ETF evaluation among investors and firms worldwide 2023

    Topic: ESG investing (23)

    Leading methods for ESG ETF evaluation among investors and firms worldwide 2023

    Leading methods for environmental, social and governance (ESG) ETF evaluation among institutional investors and firms worldwide in 2023

Targets and drivers

5
  • Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
  • Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs
  • Premium Statistic ESG drivers impacting investment decisions worldwide 2023, by region
  • Premium Statistic Top sustainable debt instruments for supporting issuers transition worldwide 2023
  • Premium Statistic Perceived demand for sustainable funds 2023 in Europe and North America

Targets and drivers

  • Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets

    Topic: ESG investing (24)

    Most targeted UN SDG of ESG ETFs worldwide 2024, by assets

    Most targeted Sustainable Development Goal (SDG) of ESG ETFs worldwide in 2024, by assets (in billion U.S. dollars)

  • Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs

    Topic: ESG investing (25)

    Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs

    Most targeted Sustainable Development Goal (SDG) of ESG ETFs worldwide in 2024, by number of ETFs

  • Premium Statistic ESG drivers impacting investment decisions worldwide 2023, by region

    Topic: ESG investing (26)

    ESG drivers impacting investment decisions worldwide 2023, by region

    Environmental, social, and corporate governance (ESG) drivers impacting investment decisions worldwide in 2023, by region

  • Premium Statistic Top sustainable debt instruments for supporting issuers transition worldwide 2023

    Topic: ESG investing (27)

    Top sustainable debt instruments for supporting issuers transition worldwide 2023

    Top debt instruments for supporting an issuer's transition to a sustainable strategy worldwide in 2023, by security type

  • Premium Statistic Perceived demand for sustainable funds 2023 in Europe and North America

    Topic: ESG investing (28)

    Perceived demand for sustainable funds 2023 in Europe and North America

    Perceived demand for sustainable funds against non-sustainable funds in 2023 in Europe and North America, by region

Performance

4
  • Premium Statistic Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023
  • Premium Statistic Leading sustainable debt products actively invested in by global investors 2024
  • Premium Statistic Share of investors that view ESG as integral in credit analysis worldwide 2022

Performance

  • Topic: ESG investing (29)

    Performance difference between the S&P 500 ESG and S&P 500 indexes 2021-2024

    Comparison of the effect of the S&P 500 ESG and S&P 500 indices between February 2021 and February 2024 (in standardized index points)

  • Premium Statistic Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023

    Topic: ESG investing (30)

    Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023

    Median returns on sustainable funds compared to non-ESG funds worldwide from 1st half of 2019 to 2nd half of 2023

  • Premium Statistic Leading sustainable debt products actively invested in by global investors 2024

    Topic: ESG investing (31)

    Leading sustainable debt products actively invested in by global investors 2024

    Leading sustainable debt products actively invested in by global investors in 2024

  • Premium Statistic Share of investors that view ESG as integral in credit analysis worldwide 2022

    Topic: ESG investing (32)

    Share of investors that view ESG as integral in credit analysis worldwide 2022

    Share of investors that view economic, social, and, governance (ESG) as integral in credit analysis worldwide in 2022

Further reportsGet the best reports to understand your industry

Get the best reports to understand your industry

Investment funds
Green bonds in Europe
Environmental commitments of Europe's largest banks
Green finance and responsible investments in France
Green bonds worldwide
Green banking

Contact

Get in touch with us. We are happy to help.

Topic: ESG investing (39)

Topic: ESG investing (40)

Meredith Alda

Sales Manager– Contact (United States)

Email

support@statista.com

Tel

+1 914 619-5895

Mon - Fri, 9am - 6pm (EST)

Topic: ESG investing (41)

Yolanda Mega

Operations Manager– Contact (Asia)

Email

asia.support@statista.com

Tel

+65 6995 6959

Mon - Fri, 9am - 5pm (SGT)

Topic: ESG investing (42)

Kisara Mizuno

Senior Business Development Manager– Contact (Asia)

Email

asia.support@statista.com

Mon - Fri, 10:00am - 6:00pm (JST)

Topic: ESG investing (43)

Lodovica Biagi

Director of Operations– Contact (Europe)

Email

eu.support@statista.com

Tel

+44 (0)20 8189 7000

Mon - Fri, 9:30am - 5pm (GMT)

Topic: ESG investing (44)

Carolina Dulin

Group Director - LATAM– Contact (Latin America)

Email

latam@statista.com

Tel

+1 212 419-5774

Mon - Fri, 9am - 6pm (EST)

Yes, let me download!

...and make my research life easier.

Topic: ESG investing (2024)

FAQs

Topic: ESG investing? ›

ESG investing focuses on companies that follow positive environmental, social, and governance principles. Investors are increasingly eager to align their portfolios with ESG-related companies and fund providers, making it an area of growth with positive effects on society and the environment.

What is an ESG topic? ›

ESG stands for environmental, social and governance. These are called pillars in ESG frameworks and represent the 3 main topic areas that companies are expected to report in.

What are the ESG principles in investing? ›

This type of ethical investing strategy helps people align investment choices with personal values. ESG stands for environment, social and governance. ESG investors aim to buy the shares of companies that have demonstrated a willingness to improve their performance in these three areas.

What is ESG investing discussion? ›

ESG investing looks at how well a company performs in areas like the environment, social issues, and governance issues.

What is an example of ESG investing? ›

Examples include Dow Jones Sustainability Index, Bloomberg ESG Data Services, Thomson Reuters ESG Research Data, and others. The ESG scores measure companies' efforts in reducing carbon footprints, greener technology usage, community development projects, tax abiding, and avoiding legal issues.

What are the 4 pillars of ESG? ›

The Measuring Stakeholder Metrics: Disclosures report reveals the World Economic Forum's performance on four pillars of environmental, social and corporate governance (ESG): Principles of Governance, People, Planet and Prosperity.

Why is ESG a hot topic? ›

This growth is due to several factors, including: Increased awareness of sustainability and social responsibility issues. Institutional investors' demand for ESG products. Regulatory changes in some countries have made it easier for investors to integrate ESG factors into their investment decisions.

What is ESG in simple words? ›

ESG means using Environmental, Social and Governance factors to assess the sustainability of companies and countries. These three factors are seen as best embodying the three major challenges facing corporations and wider society, now encompassing climate change, human rights and adherence to laws.

What are the disadvantages of ESG investing? ›

However, there are also some cons to ESG investing. First, ESG funds may carry higher-than-average expense ratios. This is because ESG investing requires more research and due diligence, which can be costly. Second, ESG investing can be subjective.

Who is behind ESG? ›

The term ESG first came to prominence in a 2004 report titled "Who Cares Wins", which was a joint initiative of financial institutions at the invitation of the United Nations (UN).

Why do investors want ESG? ›

Investors increasingly believe companies that perform well on ESG are less risky, better positioned for the long term and better prepared for uncertainty. Companies that realign to the stakeholder capitalism agenda may have a competitive advantage over those that try to return to business as usual.

Why is ESG so popular? ›

ESG is popular due to the following factors:

It helps regulators to get information and process it as well. 3. Investors are increasingly choosing to invest in companies that align with their values and goals.

Why do people invest in ESG funds? ›

G stands for governance.

The great promise of ESG is that investors can make the world a better place and help put the brakes on climate change, while also making money.

Who supports ESG Investing and who's against it and why? ›

There is no standard ESG benchmark. The people who do not support ESG are the ones who want to make money.” In a nutshell, “opponents to ESG argue that consideration of factors undermines corporate competitiveness and will lead to lower returns for shareholders,” says Maloney.

Is Apple an ESG investment? ›

Apple (AAPL) has cultivated an image as a conscientious steward of the environment and an impassioned promoter of social causes. And that shows in the high ranking of Apple (No. 5) on IBD's 2022 100 Best ESG Companies list.

What are the three pillars of ESG? ›

The three pillars of ESG are:
  • Environmental – this has to do with an organisation's impact on the planet.
  • Social – this has to do with the impact an organisation has on people, including staff and customers and the community.
  • Governance – this has to do with how an organisation is governed. Is it governed transparently?

What is ESG controversy topics? ›

ESG controversies score consists of 23 ESG controversy topics, including anti-competition, business ethics, intellectual property, tax fraud privacy, environmental issues, diversity & opportunity, etc. The default value of all controversy measures is 0, meaning companies with no controversies will get a score of 100%.

Why is the ESG topic important? ›

From an investor's perspective, ESG factors provide valuable insights into a company's long-term growth potential, risk management capabilities, and financial performance. ESG framework plays a crucial role in risk management by identifying, organizing, analyzing, and prioritizing various business risks.

What are the key ESG issues? ›

  • Tax fairness.
  • Responsible political engagement.
  • Cyber security.
  • Executive pay.
  • Corporate purpose.
  • Anti-corruption.
  • Whistleblowing.
  • Director nominations.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Catherine Tremblay

Last Updated:

Views: 6356

Rating: 4.7 / 5 (67 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Catherine Tremblay

Birthday: 1999-09-23

Address: Suite 461 73643 Sherril Loaf, Dickinsonland, AZ 47941-2379

Phone: +2678139151039

Job: International Administration Supervisor

Hobby: Dowsing, Snowboarding, Rowing, Beekeeping, Calligraphy, Shooting, Air sports

Introduction: My name is Catherine Tremblay, I am a precious, perfect, tasty, enthusiastic, inexpensive, vast, kind person who loves writing and wants to share my knowledge and understanding with you.