A decline in sustainable investments due to current and expected regulatory scrutiny is highlighting the industry’s need for better standards on what qualifies as an environmental, social and governance asset, a top sustainable investing group said.
American sustainable assets under management totaled $8.4 trillion, or about one-sixth of all funds, at the start of 2022, according to a report released this week by US SIF: The Forum for Sustainable and Responsible Investment.
The 2022 total is less than half the figure reported for 2020, when the organization reported domestic sustainable investments totaled $17.1 trillion.