US SIF Foundation releases biennial Trends Report
Today, the US SIF Foundation released its biennial Report on US Sustainable, Responsible, and Impact Investing Trends.
Croatan Institute was the main research team on the project, responsible for surveying, researching, and analyzing such trends. The project was conducted in May through August of this year, with extensive outreach to and research on approximately 1,500 investment management firms and institutional asset owners.
The report found that US sustainable, responsible and impact investing (SRI) has expanded 76 percent in two years: from $3.74 trillion at the start of 2012 to $6.57 trillion at the start of 2014. This large increase signals the growing interest of investors and their clients in the SRI space, as well as many other growing trends, some of which include:
- Following the December 2012 school shooting in Newtown, Connecticut, policies restricting investments in weapons manufacturers have spread. Since 2012, consideration of these criteria by money managers has grown nearly four-fold in asset-weighted terms to affect $588 billion. Among institutional asset owners, concerns over weapons now apply to $355 billion in assets, a nearly five-fold increase.
- Sudan remains the leading social issue for institutional investors in terms of the assets affected, with restrictions on investing in companies doing business there affecting $2.7 trillion in assets.
- For both money managers and institutional investors, climate change remains the most significant environmental factor in terms of assets, affecting $276 billion and $552 billion, respectively. Fossil fuel divestment policies, tracked for the first time in 2014, now affect tens of billions of dollars in assets.
“The findings released today clearly demonstrate that sustainable, responsible and impact investing strategies are on the rise,” said Lisa Woll, CEO of US SIF and the US SIF Foundation. “SRI strategies can be applied across asset classes to promote corporate social responsibility, build long-term value for companies and their stakeholders, and foster businesses that will yield community and environmental benefits.”
For more information, contact Josh Humphreys at josh [at] croataninstitute.org.
To learn more, visit the project page on Sustainable and Responsible Investment Trends.
To download the executive summary, click here.