In the midst of the COVID-19 pandemic and increased focus on social justice, sustainable investment funds have attracted record inflows this year, pushing global assets under management over $1 trillion, according to the Financial Times. This trend includes a sub-strategy of what we’ve classified as “smart sustainability,” or rather, the integration of ESG considerations into a smart beta index strategy.
To examine the uptick in sustainable investments and better understand the growing interest in smart sustainability, we surveyed 139 global asset owners earlier this year to gauge their evaluation and adoption of these strategies. The results are a striking reminder that sustainable investment has become an established consideration for institutional investors globally with 72% implementing or evaluating ESG (rising 14% from last year). Yet interestingly, the survey reveals that while regional differences among usage persist, once drastically pronounced gaps have narrowed.
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