Socially responsible investment assets in the U.S. have grown 76 percent over the past two years, constituting a $6.57 trillion sector at the start of 2014, according to a new report.
The growth in SRI assets—the report looked at everything falling under the umbrella of “sustainable, responsible and impact investing”—means that the category now represents one out of every six dollars under professional management in the U.S., according to report released today by the US SIF Foundation, a nonprofit SRI research organization.
The study found that about $6.2 trillion is held by 480 institutional investors, 308 money managers and 880 community investment institutions that actively screen investments using environmental, social and corporate governance (ESG) criteria.
About $1.7 trillion is held by 202 institutional investors or money managers that filed shareholder resolutions on ESG issues from 2012 to 2014, according to the report.
After accounting for assets involved in both strategies, the report arrived at a final total of $6.57 trillion.
“The findings released today clearly demonstrate that investment decisions using sustainable, responsible and impact investing strategies are on the rise,” said Lisa Woll, CEO of US SIF and the US SIF Foundation.
The increasing pool of assets reflects a growing interest among investors in SRI, and an effort by the financial industry to offer products that meet that demand, according to the report.
When asked why they offer ESG products, 80 percent of 119 money managers surveyed said it was due to client demand.
Assets managed by investment firms that consider ESG issues grew from $1.4 trillion in 2012 to $4.8 trillion in 2014, according to the report.
Institutional investors, including pension funds, foundations, educational endowments and religious institutions that use ESG criteria have increased their assets 77 percent in that time, to about $4 trillion in 2014, according to the report.
