Trends in Sustainable Responsible Impact Investing

The 2014 U.S. Sustainable, Responsible and Impact Investing Trends Report   Sustainable, Responsible and Impact Investing (SRI) in the United States has grown substantially over the past two years. The total US-domiciled assets under management using SRI strategies expanded from $3.74 trillion at the start of 2012 to $6.57 trillion at the start of 2014, an increase of 76 percent, according to the US SIF Foundation’s latest biennial survey, the Report on US Sustainable, Responsible and Impact Investing Trends 2014.    These assets now account for more than one out of every six dollars under professional management in the United States.   The individuals, institutions, investment companies, money managers and financial institutions that practice SRI seek to achieve long-term competitive financial returns together with positive societal impact. SRI strategies can be applied across asset classes to promote stronger corporate social responsibility, build long-term value for companies and their stakeholders, and foster businesses or introduce products that will yield community and environmental benefits.   Through information requests and research undertaken in 2014, the US SIF Foundation identified:   •  $6.20 trillion in US-domiciled assets at the beginning of 2014 held by 480 institutional investors, 308 money managers and 880 community investment institutions that apply various environmental, social and governance (ESG) criteria in their investment analysis and portfolio selection, and   •  $1.72 trillion in US-domiciled assets at the beginning of 2014 held by 202 institutional investors or money managers that filed or co-filed shareholder resolutions on ESG issues at publicly traded companies from 2012 through 2014.   After eliminating double-counting for assets involved in both strategies, the overall total of SRI assets at the beginning of 2014 was $6.57 trillion. Throughout the Trends Report, the terms sustainable and responsible investing, sustainable investing, responsible investing, impact investing and SRI are used interchangeably to describe these investment practices.   The assets engaged in sustainable, responsible and impact investing practices at the start of 2014 represent nearly 18 percent of the $36.8 trillion in total assets under management tracked by Cerulli Associates. From 1995, when the US SIF Foundation first measured the size of the U.S. sustainable and responsible investing market, to 2014, the SRI universe has increased tenfold, or 929 percent, a compound annual growth rate of 13.1 percent.   Also in the January 2015 issue of GreenMoney (www.GreenMoney.com) you will find more in-depth information from the 2014 Trends Report including additional highlights, the major drivers of SRI, key emerging trends and insights from Lisa Woll, CEO of US SIF as well as some new videos.