Sustainable Indexing Performance
In the three years ending December 31, 2021, assets invested in sustainable funds in the United States more than tripled to over $350 billion, with inflows of more than $50 billion in both 2020 and 2021.1.
Today, socially minded investors may choose other routes to make a difference, including advocacy, activism, and philanthropy. So why choose environmental investing?
Though there will always be periods where any given investing approach underperforms the broad market, most analyses we have seen largely indicate that screens accounting for environmental, social, and governance factors do not hurt financial performance.2 Large financial institutions are touting such factors with growing confidence. And major institutions, including BlackRock, are pointing to the climate transition as a "historic investment opportunity.”3
Climate change has become an undeniable factor in business decisions - and our investments must reflect that new reality.
Source: Morningstar Direct. Data as of Dec. 31, 2021. Includes Sustainable Funds as defined in Sustainable Funds U.S. Landscape Report, January 2022. Includes funds that have liquidated; excludes funds of funds.
1
2
3
