Release of Report Marks Launch of the Global Sustainable Investment Alliance

WASHINGTON, DC — The Global Sustainable Investment Alliance (GSIA) today released a report on the size and trends within the sustainable investment industry, finding that globally, at least US$ 13.6 trillion worth of professionally managed assets incorporate environmental, social, and governance (ESG) concerns into their investment selection and management.

The Global Sustainable Investment Review 2012 is a collaboration between the Global Sustainable Investment Alliance, AfricaSIF.org, and SIF-Japan. It is the first report to consolidate results from market studies conducted by regional sustainable investment forums across Europe, the United States, Canada, Australia, Asia, Japan, and Africa. The report measures sustainable investments in all asset classes, including public equities, fixed income, hedge funds, and microfinance.

The US$ 13.6 trillion in professionally managed assets incorporating ESG concerns represents 21.8 percent of the total assets managed professionally in the regions covered by the report, demonstrating the significant scale of the sustainable investment industry on the global stage.

Europe is the largest region, with about 65 percent of the known global sustainable investing assets under management. Europe, along with the United States and Canada, accounts for 96 percent of SRI assets.

Other Key Findings Include:

• The most common strategy used globally is negative/exclusionary screening, with US$ 8.3 trillion in assets.
• Norms-based screening, which totals US$ 3.0 trillion, is significant but currently primarily found on a large scale in Europe.
• Positive/best-in-class screening stands at just over US$ 1.0 trillion, with the U.S. market contributing the most to global assets invested in positive screening.
• Assets utilizing ESG integration total US$ 6.2 trillion.
• Approaches to corporate engagement/shareholder action vary greatly across regions, but this is the third-most common strategy, with US$ 4.7 trillion.
• Impact investing and sustainability-themed investments are comparatively small, with US$ 89 billion and US$ 83 billion, respectively.

All regions expect sustainable investment strategies to grow as increasing numbers of investors realize the value of considering ESG issues and the importance of sustainable investment for risk management and long-term performance.

The release of this report also marks the launch of the Global Sustainable Investment Alliance (GSIA) and its website at www.gsi-alliance.org.

About GSIA
The GSIA is a collaboration of the seven largest sustainable investment membership organizations in the world:

• Association for Sustainable & Responsible Investment in Asia (ASrIA)
• European Sustainable Investment Forum (Eurosif)
• Responsible Investment Association Australasia (RIAA)
• Social Investment Organization (SIO) in Canada
• UK Sustainable Investment and Finance Association (UKSIF)
• US SIF: The Forum for Sustainable and Responsible Investment
• Vereniging van Beleggers voor Duurzame Ontwikkeling (VBDO) in the Netherlands

The mission of GSIA is to deepen the impact and visibility of sustainable investment membership organizations globally. Its vision is a world where sustainable investment is integrated into financial systems and the investment chain, with all regions covered by vigorous membership-based institutions that represent and advance the sustainable investment community.

The GSIA members have worked together for several years to deepen the practice of sustainable investment, and the launch of the GSIA formalizes their work.

The GSIA Secretariat is housed at US SIF.

Pablo Berrutti, Chair of RIAA’s Board of Directors, commented:
“The release of the first Global Sustainable Investment Review and the launch of the Global Sustainable Investment Alliance mark an important milestone for responsible investors globally. The growth of different sustainable investment strategies around the world highlights that global ESG issues, such as climate change, resource scarcity, corruption, and inequality, have relevance for investors everywhere as capital markets and corporate footprints have also become globalized. By working with our sister organizations under the GSIA banner, RIAA will be able to better represent and support our members on global issues and share ideas and strategies for managing them. We fully expect this partnership will help grow sustainable investment practices in Australia and New Zealand.”

Notes for the Editor:

About the Responsible Investment Association (RIAA):
The Responsible Investment Association is the peak industry body for institutions and professionals working in responsible investment in Australasia. RIAA’s purpose is to provide training, professional development, events, research, and policy initiatives that promote stable markets, maximize financial returns, and create positive environmental, social, and governance outcomes.

For more information about RIAA, please contact the team at info@responsibleinvestment.org.

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