US SIF Trends Report documents Sustainable Investment Assets
In its 15th edition, US SIF Foundation’s Report on US Sustainable Investing Trends identified climate action as the number one sustainable investing priority over the long- and short-term. The report, release in December 2024, documents $6.5 trillion in total US sustainable investment assets under management at the beginning of 2024. This represents 12 percent of the total US assets under professional management.
The 2024 US SIF Trends Report provides data on the US asset management firms and institutional asset owners using sustainable investment strategies and examines the environmental, social and corporate governance issues they consider in managing their portfolios. The report details the size of the US sustainable investment market, the Trends Survey findings, and emerging trends in the industry.
In addition to using advanced data analytics and AI tools, US SIF surveyed more than 250 — doubling responses to the 2022 survey — and found that addressing climate change and the clean energy transition were top priorities for respondents. Additionally, 73% of respondents expect the sustainable investment market to grow over the next one to two years, while only 39% of respondents expect their own organizations to increase sustainable investing, indicating that this growth is anticipated to come from broader market participants.
First published in 1995, the Trends Report has tracked the evolution of the practice of sustainable investing from a niche approach centered on values to a broad field attuned to financial risks and opportunities. The 15th edition of the Trends Report comes at another inflection point in that evolution. Now, against a backdrop of increased ESG-pushback and claims of greenwashing, the sustainable investing community has an opportunity the way in which it addresses the systemic issues facing the global economy and our day-to-day lives — climate change, social inequity and responsible corporate governance.
This report is also evolving, analyzing data with more precision. The 2024 US SIF Trends Report builds on the changes made to the methodology in 2022 by taking another critical look at the availability of verifiable investor data and public reporting using advanced data collection and analysis techniques. Partnering with SDGlabs.ai, the 2024 Trends Report identified a baselines measure, which serve as a snapshot of the current market, enabling future comparisons and helping guide how stakeholders interpret the data. This methodology creates a foundation for consistent tracking moving forward.
TRENDS REPORT HIGHLIGHTS
- US SIF analysis, based on submissions to the SEC, records the US market size as $52.5 trillion, of which $6.5 trillion (12%) was specifically identified or marketed as sustainable or ESG investment, setting a new baseline for the size of the market.
- 73% of respondents expect the sustainable investment market to grow over the next one to two years.
- The integration of sustainability or ESG characteristics (81%) and the use of negative or exclusionary screening (75%) remain the most frequently reported sustainable investing strategies. Over 65% of respondents use three or more strategies across their investments.
- Partial or full fossil-fuel exclusions is now the most frequently reported negative screen (68%), surpassing tobacco exclusions (66%).
- Direct impact investing and community investing continues to be a bright spot with growing enthusiasm across multiple types of investors.
- Survey results indicate that there is a strong core group of investors who undertake multiple shareholder engagement activities.
Individual perceptions on the future of sustainable investing are strongly positive, with 73% of respondents expecting that the market will significantly or moderately grow over the next one to two years. Also, 12% of respondents expect sustainable investment to increase significantly in the next one to two years, 61% anticipate moderate growth, and 18% expect the practice to remain at its current level. However, this view is contrasted by thoughts on where this growth will come from. Only 39% expect their own organizations to contribute to the anticipated increase in sustainable investing. This suggests that survey respondents believe growth may come from broader market participants. At the organizational level, survey results show 10% of organizations intend to increase sustainable investing significantly.
For additional Trends report findings and information please visit https://www.ussif.org
About US SIF and the US SIF Foundation
US SIF: The Sustainable Investment Forum is the preeminent voice advancing sustainable investing. Members, who represent $5 trillion in assets under management or advisement, support US SIF’s mission to rapidly shift investment practices toward sustainability, focusing on long-term investment, the generation of positive social and environmental impacts and supporting the shift toward a more resilient and equitable planet and society.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment.