ESG investing has rapidly established itself as a significant and durable theme in U.S. and global asset management, with over 25% of U.S. equity and bond funds flows now tagged with an ESG mandate versus only 14% two years ago. Generational priorities and attitudes toward sustainability also signal a likely continuation of this trend. We believe these themes will continue to drive consumer and investing behaviors for this cohort, which alone will represent 70% of consumers by 2028 and command $60 trillion in inherited wealth by 2050.
What we’re watching
- Growing integration of ESG in buyside investment approaches
- Evolution of buyside teams to define and support ESG investing
- Growing regulatory focus and anticipated disclosure requirements
- Challenges to adoption – consistency and comparability in ESG data and standards
- Emerging sell-side coverage of ESG
25%
of U.S. equity and bond flows are tagged with an ESG mandate
80%
of 18-34 year-olds that participated in a Cowen Research survey view sustainability as somewhat or very important to their purchasing decisions
~4000
signatory organizations for the Principles for Responsible Investment initiative