From increased public interest in sustainable themes, demographic shifts and regulatory changes, there many reasons why the interest in ESG/Sustainable/Responsible Investing is on the rise.
Data: Morningstar, JPM, data as at June 2021
Data: FSB Taskforce on Climate Disclosures, data as at October 2021
When assessing whether to invest sustainably or not, it is always worth taking a lot at the outcomes. Below are two charts from JPM's chart pack exploring the benefits of investing in ESG companies.
Morningstar's latest Global Sustainable Fund Flows for the third quarter of 2021 shows global sustainable funds attracted $134bn in net inflows for the three-month period. Sustainable funds are in favour vs. non-sustainable funds.
Data: Climate Bonds Initiative, data as at October 2021
The proliferation of bonds in the ESG space is incredible and there appears to be more to come. NN Investment Partners are forecasting a 25% rise in green bond issuance in 2022.