The rise of sustainable investing

Will new EU regulation drive further growth in sustainable investing (SI)?

Flip the tile to learn more about sustainable investing.

What is sustainable investing?

Sustainable investing describes investment strategies that target sustainability and financial objectives.

Examples of SI objectives:

Climate change mitigation and adaptation, Sustainable use and protection of water and marine resources, Transition to a circular economy, waste prevention and recycling and Protection of health ecosystems.

More investors turning to sustainable investing

European SI assets expected to reach between €5.5 trn and €7.6 trn by 2025

Source: The Growth Opportunity of a Century, PwC Luxembourg, 2020

Global SI assets growing strongly

NNM by date and index fund*

The chart shows the overall growth of Global SI assets from 2017 to 2020.

Source: ISS Market Intelligence Simfund, UBS Analysis. Data as of September 2020 in USD. Excludes Money Market, Guaranteed and funds without any SI Type assigned

What is driving growth?

Growing investor demand, String flows of sustainable strategies and Societal changes accelerated by COVID-19.

Looking to the future

EU Action Plan 2 - Real economy focus on sustainable outcomes; EU Benchmarks Regulation - EU approved voluntary climate benchmarks; EU Non-Financial Reporting Directive - Make EU companies disclose more ESG data; EU Ecolabel 'Kitemark' for sustainable funds - voluntary