SRI tops 11% of US investing

The most recent annual report by the U.S. SIF Foundation reports that over 11% of assets under management in the US have been subject to social, environmental, and governance criteria, in addition to traditional financial performance considerations.  Nearly $4 trillion of assets is now managed with SRI and/or ESG criteria.

As Bloomberg put it:

Call it what you like — sustainable investing, responsible investing, socially responsible investing, impact investing, green investing or just ESG — this practice is bringing new approaches into the traditional investment industry. The field has expanded tremendously since trail-blazing funds, such as the Dreyfus Third Century Fund and the Pax World Fund were launched in the early 1970s. Today, sustainable investors might be concerned with climate change, alternative energy, human rights, diversity, community investing or other issues. We have seen a blossoming of specialized advisors and consultants and new investment products across all asset classes.

Major investment management firms recognize that current and potential clients have a growing interest in sustainable practices. Nearly 1,200 asset owners, investment managers and professional service partners have signed the United Nations-backed Principles for Responsible Investment and are starting to disclose their ESG performance. Eighty-two U.S. money managers with $4.9 trillion in assets ask portfolio companies about ESG issues. Just 54 managers, with $3.8 trillion in assets, reported doing so two years earlier, according to the U.S. SIF Foundation.

Click through the link above for more detailed coverage from Bloomberg.

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Jim Cummings

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