Despite the lagging economy, sustainable and socially responsible investing (SRI) in the United States is on the rise.
According to the Social Investment Forum, investor interest in sustainable investing has helped the investment sub-sector outperfom the rest of the investment universe.
Since 2005, SRI assets have increased by over 34%, dwarfing the 3% growth achieved in professionally managed assets as a whole. This growth has been achieved by increased inflows into existing SRI products, development of new products and the inclusion of more professional money managers and institutions who were not previously participating in the field.
“Socially responsible and sustainable investing emerged from the recent financial crisis doing better than the overall market in terms of holding onto assets and attracting new investments,” says Social Investment Forum CEO Lisa Woll.
The total AUM of SRI and ESG investments – which specifically include environmental, social and governance criteria into all investment decisions – is estimated at $2.51 trillion.