With more and more investors gravitating toward sustainable and responsible investments (SRI), particularly among women and millennials, the growth in U.S. SRI assets reflects the sector’s popularity.
Let’s take a look at this year’s “US Sustainable, Responsible and Impact Investing Trends 2016” report issued by The Forum for Sustainable and Responsible Investment (USSIF).
Per the report, the total U.S. SRI assets have grown from $6.57 trillion in 2014 to $8.72 trillion in 2016. Impressively, “these assets now account for more than one out of every five dollars under professional management in the United States.” Since 1995, when USSIF first started tracking SRI assets, the sector has grown nearly 14-fold with an annual compounding rate averaging 13.25%.
Contributing factors to this growth include:
- Growing market penetration of SRI products
- New ESG products
- Wider incorporation of ESG criteria by numerous large asset managers
For more insight into the robust growth of the SRI industry, check out the full report here.