ESG Investments Will Skyrocket by 2030: Report

ESG investments

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A new report finds that dedicated environmental, social, and governance (ESG) investment assets are on track to grow from $8 trillion today to as much as $30 trillion by the end of this decade.

Broadridge Financial Solutions writes that asset managers stand to win up to $9 trillion of net new flows, with expanding opportunities through “thematic strategies, climate transition and net-zero solutions, and investments offering measurable sustainability impacts.”

It notes that net flows into ESG mutual funds and ETFs have risen dramatically this year to $577 billion in the nine months through September 2021, far surpassing the full-year total of $355 billion for 2020.

“Net flows into ESG mutual funds and ETFs have risen dramatically this year.”

“ESG strategies accounted for just 11% of overall mutual fund and ETF assets but captured 30% of inflows during the twelve months through September 2021,” Jag Alexeyev, Head of ESG Insights at Broadridge Financial Solutions, said in a statement. “While growth remains strong, the complexities and costs of ESG implementation have risen, and fund selectors have begun to ask harder questions.

Alexeyev adds that greenwashing has emerged as a key reputational risk that firms must address.

The report found the following:

Visit this link to download Broadridge’s ESG and Sustainable Investment Outlook Report.

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