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Sustainability Matters

There's Ample Room for Sustainable Investing to Grow in the U.S.

Sustainable fund investing is much more robust in Europe. How will the United States catch up?

Our first Global Sustainable Fund Flows report, published last week, revealed that sustainable funds globally attracted an estimated $45.7 billion in net flows during the first quarter of 2020 even as the overall fund universe suffered $384.7 billion in outflows. Because of first-quarter investment losses, sustainable fund assets were down 12% at the end of the quarter, but assets for the overall fund universe were down 18%.

As of March 2020, sustainable funds in Europe dominated the global picture. They constituted 76% of sustainable funds by count, 81% of assets, and 72% of first-quarter flows. U.S. funds, by contrast, made up less than 10% of sustainable funds and 14% of assets, but they garnered 23% of global flows in the first quarter.