The Rise of Sustainable Investing

Sustainable investing—which prioritizes environmental responsibility, social impact, and corporate governance (ESG)—has experienced significant global growth. In 2022, $30 trillion was invested in Sustainable Investment strategies —up from $23 trillion in 2016. While the U.S. has seen some pullback, Europe and Japan are driving recent growth.

The UN Principles for Responsible Investing -- to which Argus Research is a signatory is targeting global asset growth in the strategy of another $10-$20 trillion in 2024-2027, as outlined in its recent PRI Strategy Plan.

Originally, Sustainable Impact Investing, originally known as Socially Responsible Investing was mostly about avoiding industries like tobacco, alcohol, and firearms and excluded companies that conducted business in South Africa, Over time, it expanded to exclude things like soft drinks, fast food and fossil fuels.

Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights. Companies and managements are now increasingly measured on their adherence to sustainable best practice approaches and techniques.

Given the strategy's focus on leading management practices, sustainable investing is poised for accelerated growth in the years ahead.

From the Argus Research Daily Spotlight 5/22/25