Fast Facts about sustainable investment
These "fast facts" aim to provide a quick overview of sustainable investment and finance in the UK.
Overview:
The European SRI Study 2010, for which UKSIF collected the UK data, estimates SRI AuM in the UK as £938.9 billion (as of 31 December 2009), representing a 19% increase in AuM, compared with end 2007 .**
Main fund manager approaches:
- Integration of ESG issues
- Positive or negative screening
- Thematic investment
- Impact investing
Key trends in sustainable investment and finance:
- Deepening of ESG integration across asset classes
- Wider range of HNWI and retail investors gaining exposure to sustainable investing
- Greater interaction with policy makers
Who are the main investors:
- Insurance companies, banks and asset managers
- Occupational pension funds
- High Net Worth Individuals
- Mass Market Individual Investors
- Church and Charity Investors
SRI investors in the UK have evolved as church and charity investors have been joined by High Net Worth Individual (HNWI) investors and mass market individual investors. Eurosif's study on HNWIs estimates that sustainable investments represent 8% of European HNWIs' portfolios as of December 31 2007 and predicts that by 2012 the share will have increased to 12%, surpassing the €41 trillion mark.
Key figures:
VIGEO's SRI Market Trend report states that the number of European SRI funds increased by 29% to 879 and records a 41% increase in AuM to €75 billion, at the end of June 2010. France recorded a 92% growth in SRI AuM, Switzerland showed a 59% growth and Sweden's SRI market grew by 48%. The UK data showed a 9% growth.
According to EIRIS, as of 31 Dec 2009 there was approximately £9.5 billion invested in the UK's green and ethical retail funds - up from £2.4 billion ten years ago. A report by Robeco and consulting firm Booz & Company, 'Responsible Investing: A Paradigm Shift' suggests that by 2015 RI will reach 15-20% of global AuM.
The Investment Management Association's(IMA) quarterly statistics show a 25% year on year increase compared to the 3rd Quarter of 2010. Net retail sales of Ethical funds totalled £74 million in the last quarter, above the average of £64 million for the past four quarters
UKSIF has commented that the statistics highlight a growing trend of investors wanting to make money and make a positive difference to the world they live in.
For our latest press releases, visit our Media Centre. For more information about UKSIF, see our Mission, Values and Operating Principals, or read our Recent Publications.
**For our analysis of SRI in the UK as well as a full analysis of SRI in Europe, related definitions and study parameters download the complete European SRI Study 2010 (PDF, 1.7MB).