Climbing aboard the sustainability train has been saved
Climbing aboard the sustainability train
How the SFDR and the global pandemic may influence sustainable and responsible investment
All over the world, the investment landscape is experiencing an enduring shift towards sustainable and responsible investment (SRI). Between 2016 and 2018, sustainable investing assets climbed in all regions and countries in scope of the 2018 Global Sustainable Investment Review.
Over the last few years, SRI has evolved from a marginal investment practice to a mainstream one, driven by demand- and supply-side factors. According to a 2019 study by Morgan Stanley, millennials are more interested in SRI than the general population, and a strong positive trend was identified for both populations between 2015 and 2019.
These shifts are reflected in end investors’ demand for ESG financial products. They emanate, for example, from social movements like “Black Lives Matter” that raise concerns for human rights, or climate change threats like environmental disasters. On the supply side, a considerable number of institutional investors have recognized the industry’s responsibility to direct investments towards sustainability by investing in accordance with ESG values. Various international, nongovernmental initiatives also encourage and facilitate the move towards SRI by lowering barriers to entry.
Performance magazine issue 34, January 2021
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.