Tracking the responsible investment path

The landscape of responsible investment has rapidly evolved in recent years, influenced by stricter regulatory changes, shifting market dynamics, and an increased emphasis on environmental, social, and governance (ESG) factors. In this article, we will explore the current developments in responsible investment, including the growth of the Green, Social, and Sustainability (GSS) debt market and the rising trend of investments in renewable energy, as well as where opportunities lie for pension funds in the sustainable finance space.

In 2024, the growth of assets under management (AUM) for responsible investment funds was relatively subdued, reaching €57 billion in the first three quarters, compared to over €98 billion in the broader non-ESG market in Europe. The market shares of responsible investment funds remained stable across regions, with Article 8 and Article 9 funds holding approximately 59% of the asset market share in Q3 2024, up from 56% in Q3 2023. Additionally, the trend of fewer global responsible investment fund launches continued, reflecting a maturing market that is facing increased scrutiny due to stricter regulatory developments including more rigorous frameworks that establish minimum standards, such as the European Securities and Markets Authority (ESMA) guidelines aimed at promoting transparency in ESG disclosures.

You can now read the full whitepaper at the link below