Sustainable finance is gaining momentum, with more investors seeking to align their portfolios with environmental, social, and governance (ESG) principles. Recent data indicates that sustainable investment funds have seen a 35% increase in assets under management in the past year.
This growing trend is driven by increasing awareness of climate change and social issues, prompting investors to seek ways to make a positive impact through their financial decisions. ESG-focused funds are attracting interest not only from individual investors but also from institutional clients looking to incorporate sustainability into their long-term strategies.
“The shift towards sustainable finance is not just a trend; it’s becoming a mainstream investment strategy,” said the Head of Sustainable Investments at a leading financial institution. “Investors are recognising that companies with strong ESG practices are likely to be more resilient and provide better returns in the long run.”
Financial advisors are now prioritising ESG criteria when designing investment portfolios, offering clients a range of options that support ethical and sustainable business practices. As demand for green finance continues to rise, financial institutions are developing new products and services to cater to this growing market.