Topic: ESG investing (2024)

Raising awareness to environmental, social, and governance (ESG) issues and targeting goals beyond maximizing profits and minimizing risks is a growing trend around the world, also within investing, which has generated large inflows of assets into ESG funds in recent years. Applying non-financial factors into the investment process is a response to global challenges such as climate change and inequalities, with the aim to have a positive impact on society - although environmental factors are the main focus for most ESG investments. It is more and more becoming the standard in the investment industry, especially in Europe, where most of the sustainable fund’s assets are concentrated. The most common approach to investing sustainably is through ESG integration - by explicitly and systematically factoring ESG issues into the investment decision. This approach is creating impact by forcing companies to report how they are dealing with important environmental, social, and governance topics.

What is driving the growth of ESG investments?

The growth of sustainable investments is driven by several factors: from the politicization of ESG, impact on risk and return, from investor demand, to influence corporate behavior, and keeping a good brand and reputation, just to name a few. Although some investors still believe that it might have a negative impact on risk and return, meaning they believe that the ESG portfolios will underperform compared to non-ESG portfolios, and they do not want to sacrifice investment performance. This unwillingness to accept lower return or increasing risk used to be the main barrier to wider adoption of ESG investing, but it is, however, becoming more acknowledged around the world that investments in sustainable securities such as funds can perform even better, or at least as well as non-ESG portfolios, and can help mitigate risk. The main reason keeping investors and firms from engaging with ESG today is due to factors, such as lack of knowledge, lack of comparability of ESG data across issuers, or regulatory or legal constraints.

How is ESG performance measured?

ESG impact is still hard to measure, despite around one third of invested assets being defined as sustainable, and despite the growing awareness to the topic. There are several score systems in use to measure the risks and effects of investments, such as the most widely used Sustainalytics, MSCI ESG ratings, and S&P Global (RobecoSAM), but there are also other third-party ratings or awards. These scores, or ratings, are the most common tools used by both institutional investors and fund selectors to help measuring the impact. They do, however, show significant divergence in many cases, even when being standardized and measuring the impact of one and the same company. There are also several different sustainability reporting frameworks to help enterprises communicate their impacts, although there are large differences between stock exchanges in which of these frameworks are being referenced. This divergence in ESG reporting prove that measuring ESG impact is hard, but not impossible, and many investors are calling for a more standardized reporting framework and regulation around the topic.

This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

Published by Statista Research Department, Mar 8, 2024

Key insights

Most referenced reporting framework by stock exchanges Global Reporting Initiative

Detailed statistics

Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023

Most used tools to measure non-financial ESG performance Third-party rating

Detailed statistics

Leading methods used by institutions to implement ESG worldwide 2023

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Editor’s Picks Current statistics on this topic

Current statistics on this topic

Investment FundsMedian returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023

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ESG assets

Premium Statistic Assets of sustainable funds worldwide Q2 2023, by region
Premium Statistic Global ESG ETF assets 2006-2023
Premium Statistic AUM of sustainable funds worldwide 2018-2023
Premium Statistic Average net sector weight of sustainable and traditional equity funds worldwide, 2023

ESG assets

Premium Statistic Assets of sustainable funds worldwide Q2 2023, by region
Assets of sustainable funds worldwide Q2 2023, by region
Asset size of sustainable funds worldwide as of the second quarter of 2023, by region (in billion U.S. dollars)
Premium Statistic Global ESG ETF assets 2006-2023
Global ESG ETF assets 2006-2023
Global ESG ETF assets from 2006 to November 2023 (in billion U.S. dollars)
Premium Statistic AUM of sustainable funds worldwide 2018-2023
AUM of sustainable funds worldwide 2018-2023
Assets under management of sustainable funds worldwide from 2018 to December 2023 (in billion U.S. dollars)
Premium Statistic Average net sector weight of sustainable and traditional equity funds worldwide, 2023
Average net sector weight of sustainable and traditional equity funds worldwide, 2023
Average net weight of sustainable and traditional equity funds worldwide in 2023, by sector

Top funds

Premium Statistic Leading sustainable funds in Europe Q4 2023, by net flows
Premium Statistic Leading sustainable funds in the U.S. Q4 2023, by net flows
Premium Statistic Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings
Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance
Premium Statistic Top ESG ETFs in the U.S. 2023, by total net assets
Premium Statistic Largest ESG ETFs by AUM in the Americas 2023
Premium Statistic Largest socially responsible ETFs in Europe as of January 2024, by fund size
Premium Statistic Leading socially responsible ETFs in Europe as of January 2024, by 1-year return

Top funds

Premium Statistic Leading sustainable funds in Europe Q4 2023, by net flows
Leading sustainable funds in Europe Q4 2023, by net flows
Leading 10 sustainable funds in Europe as of 4th quarter 2023, by net flows (in billion U.S. dollars)
See Also
ESG versus SRI: Successfully aligning your investments and values Socially Responsible Investment (SRI)Socially Responsible Investment (SRI)What is Sustainable and Responsible Investment, or SRI?
Premium Statistic Leading sustainable funds in the U.S. Q4 2023, by net flows
Leading sustainable funds in the U.S. Q4 2023, by net flows
Leading 10 sustainable funds in the United States as of 4th quarter 2023, by net flows (in million U.S. dollars)
Premium Statistic Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings
Leading ESG ETFs in the U.S. 2023, by net assets and number of holdings
Leading ESG ETFs in the United States as of September 2023, by net assets and number of holdings (in million U.S. dollars)
Premium Statistic Top ESG ETFs worldwide 2023, by YTD performance
Top ESG ETFs worldwide 2023, by YTD performance
Top ESG exchange traded funds (ETFs) worldwide in 2023, by YTD performance
Premium Statistic Top ESG ETFs in the U.S. 2023, by total net assets
Top ESG ETFs in the U.S. 2023, by total net assets
Top ESG ETFs in the U.S. in 2023, by total net assets (in million U.S. dollars)
Premium Statistic Largest ESG ETFs by AUM in the Americas 2023
Largest ESG ETFs by AUM in the Americas 2023
Largest ESG ETFs in the Americas as of July 2023, based on assets under management (in million U.S. dollars)
Premium Statistic Largest socially responsible ETFs in Europe as of January 2024, by fund size
Largest socially responsible ETFs in Europe as of January 2024, by fund size
Largest socially responsible (SRI) ETFs in Europe as of January 2024, by fund size (in million euros)
Premium Statistic Leading socially responsible ETFs in Europe as of January 2024, by 1-year return
Leading socially responsible ETFs in Europe as of January 2024, by 1-year return
Leading socially responsible (SRI) ETFs in Europe as of January 2024, by 1-year return

ESG policies

Premium Statistic Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023
Premium Statistic Leading methods used by institutions to implement ESG worldwide 2023
Premium Statistic Impact of ESG politicization on institutional investing worldwide 2022
Premium Statistic Leading challenges facing firms when preparing ESG assurance worldwide 2023
Premium Statistic Frequency of ESG staff training among firms worldwide 2023
Premium Statistic Leading methods for ESG ETF evaluation among investors and firms worldwide 2023

ESG policies

Premium Statistic Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023
Reporting frameworks referenced in stock exchange ESG guidance worldwide 2023
Share of reporting frameworks referenced in stock exchange ESG guidance worldwide 2023, by framework
Premium Statistic Leading methods used by institutions to implement ESG worldwide 2023
Leading methods used by institutions to implement ESG worldwide 2023
Leading methods used by institutions to implement environmental, social and governance (ESG) worldwide in 2023
Premium Statistic Impact of ESG politicization on institutional investing worldwide 2022
Impact of ESG politicization on institutional investing worldwide 2022
The degree to which politicization of ESG has impacted institutional investors worldwide in 2022
Premium Statistic Leading challenges facing firms when preparing ESG assurance worldwide 2023
Leading challenges facing firms when preparing ESG assurance worldwide 2023
Leading challenges facing firms when preparing environmental, social and governance (ESG) assurance worldwide in 2023
Premium Statistic Frequency of ESG staff training among firms worldwide 2023
Frequency of ESG staff training among firms worldwide 2023
Frequency of environmental, social and governance (ESG) staff training among firms worldwide in 2023, by ESG advancement level
Premium Statistic Leading methods for ESG ETF evaluation among investors and firms worldwide 2023
Leading methods for ESG ETF evaluation among investors and firms worldwide 2023
Leading methods for environmental, social and governance (ESG) ETF evaluation among institutional investors and firms worldwide in 2023
See Also
Sustainable Investing - Socially Responsible Investing (SRI) | Robeco USA

Targets and drivers

Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs
Premium Statistic ESG drivers impacting investment decisions worldwide 2023, by region
Premium Statistic Top sustainable debt instruments for supporting issuers transition worldwide 2023
Premium Statistic Perceived demand for sustainable funds 2023 in Europe and North America

Targets and drivers

Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
Most targeted UN SDG of ESG ETFs worldwide 2024, by assets
Most targeted Sustainable Development Goal (SDG) of ESG ETFs worldwide in 2024, by assets (in billion U.S. dollars)
Premium Statistic Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs
Most targeted UN SDG of ESG ETFs worldwide 2024, by number of ETFs
Most targeted Sustainable Development Goal (SDG) of ESG ETFs worldwide in 2024, by number of ETFs
Premium Statistic ESG drivers impacting investment decisions worldwide 2023, by region
ESG drivers impacting investment decisions worldwide 2023, by region
Environmental, social, and corporate governance (ESG) drivers impacting investment decisions worldwide in 2023, by region
Premium Statistic Top sustainable debt instruments for supporting issuers transition worldwide 2023
Top sustainable debt instruments for supporting issuers transition worldwide 2023
Top debt instruments for supporting an issuer's transition to a sustainable strategy worldwide in 2023, by security type
Premium Statistic Perceived demand for sustainable funds 2023 in Europe and North America
Perceived demand for sustainable funds 2023 in Europe and North America
Perceived demand for sustainable funds against non-sustainable funds in 2023 in Europe and North America, by region

Performance

Premium Statistic Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023
Premium Statistic Leading sustainable debt products actively invested in by global investors 2024
Premium Statistic Share of investors that view ESG as integral in credit analysis worldwide 2022

Performance

Performance difference between the S&P 500 ESG and S&P 500 indexes 2021-2024
Comparison of the effect of the S&P 500 ESG and S&P 500 indices between February 2021 and February 2024 (in standardized index points)
Premium Statistic Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023
Median returns of sustainable funds vs. other funds worldwide H1 2019- H2 2023
Median returns on sustainable funds compared to non-ESG funds worldwide from 1st half of 2019 to 2nd half of 2023
Premium Statistic Leading sustainable debt products actively invested in by global investors 2024
Leading sustainable debt products actively invested in by global investors 2024
Leading sustainable debt products actively invested in by global investors in 2024
Premium Statistic Share of investors that view ESG as integral in credit analysis worldwide 2022
Share of investors that view ESG as integral in credit analysis worldwide 2022
Share of investors that view economic, social, and, governance (ESG) as integral in credit analysis worldwide in 2022

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Investment funds

Green bonds in Europe

Environmental commitments of Europe's largest banks

Green finance and responsible investments in France

Green bonds worldwide

Green banking

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FAQs

What is the pass rate for ESG investing certificate? ›

The passing rate for this certificate is around 70%, and the passing mark is also around 70%. Compared with other exams by the CFA Institute, the difficulty of CFA ESG is much lower, which can be interpreted that the certificate has lower value than CFA Level 1.

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Is a certificate in ESG investing worth it? ›

If you're a financial advisor, asset manager or work in risk analysis, getting ESG certified could benefit your career. It's beneficial for those looking to specialise in sustainable investing or want to show clients they know about socially responsible investment options.

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What are the arguments against ESG investing? ›

Critics of ESG — such as a group of Republican states that banned Blackrock and other “ESG friendly” asset managers from their state pension plans — argue that considering environmental and social factors violates the fiduciary duty that asset managers have towards their clients.

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What are the biggest challenges in ESG investing? ›

Despite the progress, ESG investing still faces several challenges:

Standardization and Data Gaps: There is a lack of consistent and standardized ESG data across companies and industries. ...
Greenwashing: Some companies may engage in "greenwashing," making false or misleading claims about their ESG credentials.

More items...

Mar 18, 2024

Get More Info Here ›

What is the passing score for the ESG exam? ›

Alma Mundus believes the pass mark for the CFA ESG Certificate is approximately 70%, likely falling between 71% and 74%. It's important to note that this is not official information provided by the CFA Institute. There may be various blogs, forums, and websites that disclose a pass mark range of 60-70%.

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Is certificate in ESG investing better than CFA? ›

On average, it takes CFA candidates 4 years to complete the program. The ESG certificate, on the other hand, requires 100-130 hours of preparation and can be completed within 2-6 months. In summary, the CFA exam is a rigorous and challenging professional certification for investment professionals.

Does ESG Investing really work? ›

ESG funds have done as well as other funds over time. However, there are many ESG options available and multiple ways to build an ESG portfolio. You should take into account your investment goals and risk tolerance before getting started in ESG investing.

What is the salary of certificate in ESG Investing? ›

Maximizing Earnings with the CFA ESG Investing Certificate

Role	Salary Range (2022/2023 - USD)
ESG Analyst	$60,000 - $120,000
ESG Reporting Specialist	$50,000 - $90,000
ESG Risk Analyst	$70,000 - $150,000

Jan 28, 2024

How much does ESG certificate cost? ›

The registration fee for the Certificate in ESG Investing is USD 865.

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Why ESG investing doesn't work? ›

For example, ESG factors rarely focus on assigning social or environmental value to the products and services that the 'paper mills' produce; it's squarely about how the businesses are run - which makes values-based screening and impact-linked revenue streams out of scope - and arguments about a company with 'good' or ...

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Who is pushing ESG? ›

Rising interest, says Matos, spurred investment managers — including the “big three” of BlackRock, State Street and Vanguard — to tout ESG-focused offerings, for both idealistic and practical reasons.

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What is the controversy with ESG? ›

One of the biggest criticisms of ESG is that it perpetuates what it was partly designed to stop – greenwashing.

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What's behind the ESG investment backlash? ›

Some supporters think the term has become so broad as to lose much of its meaning. Many point to the prevalence of greenwashing, which is when companies exaggerate the environmental benefits of their actions. Other criticisms focus on the way fund managers rank companies by how they're performing on ESG factors.

Keep Reading ›

What are the disadvantages of ESG investing? ›

However, there are also some cons to ESG investing. First, ESG funds may carry higher-than-average expense ratios. This is because ESG investing requires more research and due diligence, which can be costly. Second, ESG investing can be subjective.

What can go wrong in ESG? ›

Not tracking the right metrics: “What gets measured gets managed”. An essential part of ESG success is to track the right metrics. To make the biggest impact companies are advised to make a materiality assessment to see where to focus their efforts.

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How long does ESG certificate take? ›

For beginners, studying about 100 hours for Garp SCR might be enough. But for CFA ESG, you might need around 130 hours. Both courses give you one practice exam.

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What happens if you fail CFA ESG exam? ›

Candidates who fail the exam and re-register will receive the benefit of a reduced registration fee of USD 690 for each subsequent examination. If you fail the exam twice within a six month period, you will not be permitted to register again until six months after the date of your first failed appointment.

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What is a good ESG rating score? ›

Environmental, social, and governance (ESG) scores are an essential tool for investors to assess a company's sustainability and ethical performance. These scores typically range from 0 to 100, with a score of less than 50 considered relatively poor and more than 70 considered good.

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Topic: ESG investing (2024)

What is driving the growth of ESG investments?

How is ESG performance measured?

Key insights

Editor’s Picks Current statistics on this topic

Current statistics on this topic

Related topics

Recommended

Recommended statistics

ESG assets

ESG assets

Top funds

Top funds

ESG policies

ESG policies

Targets and drivers

Targets and drivers

Performance

Performance

Further reportsGet the best reports to understand your industry

Get the best reports to understand your industry

Contact

FAQs

What is the pass rate for ESG investing certificate? ›

Who is pushing ESG? ›