2024 Global Sustainable Investment Report
The Global Sustainable Investment Alliance (GSIA) releases 2024 Global Sustainable Investment Report, which aims to summarize the development of the global sustainable investment industry.
Since 2012, the Global Sustainable Investment Alliance releases a sustainable investment report every two years, which shows that sustainable investment is gradually becoming a systematic consideration for investors.
Related Post: Harvard University Releases Global Sustainable Investment Report
Background of Global Sustainable Investment Report
The definition of sustainable investment in this report comes from a document jointly released by the Principles for Responsible Investment (PRI), CFA Institute, and GSIA, which aims to achieve financial returns and sustainable outcomes through investment methods. This report summarizes data from sustainable investment institutions in regions such as EUROSIF, UKSIF, and US SIF, and analyzes the sustainable fund market using Morningstar’s global fund database.
- Sustainable investment consists of two parts:
- Investment methods: Screening, ESG integration, thematic investment, engagement, and impact investment.
- Screening methods: Norm-based screening, negative screening, positive screening.
Global Sustainable Investment Development
Since 2022, global sustainable investment regulatory policies have gradually expanded from the European Union to jurisdictions such as the United Kingdom, the United States, Australia, and Canada. These regulatory policies involve the following categories of sustainable investments:
- Sustainability: Sustainable development and sustainable goals at its core.
- Transition: Expected to improve or promote sustainable transition.
- ESG Collection: Promoting ESG characteristics and sustainable development.
- Non-ESG: Treating ESG as a financial risk and taking exclusive measures at the company level.
Sustainable investment regulatory policies are usually classified into the above categories, such as the EU Sustainable Finance Disclosure Regulation (SFDR), where Article 9 funds belong to the sustainability category, Article 8 funds belong to the ESG collect category, and Article 6 funds belong to the non-ESG category. The UK’s Sustainability Disclosure Requirements (SDR) include Sustainable Impact and Sustainable Focus as sustainability categories, Sustainable Improvers as transition category, and Sustainability Mixed Goals as ESG collection category.
This report calculates the size of the global sustainable investment market from two perspectives, namely:
- Data from sustainable investment institutions in various regions: The global sustainable investment market size is $1.6 trillion, but this survey lacks data from Europe and the United States.
- Morningstar fund database data: The global sustainable investment market size is $1.67 trillion, and database funds only include collective investment funds of asset management companies, accounting for 30% of the investable market.
Reference:
Global Sustainable Investment Review 2024
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