Which regions manage the highest proportion of sustainable and responsible investing assets?

The regions that manage the highest proportion of sustainable and responsible investing assets are the USA and Europe. This is largely due to several key factors that contribute to the robust growth and prominence of sustainable investing practices in these areas.

In the USA, there has been a significant rise in investor demand for sustainable investment products, driven by an increasing awareness of environmental, social, and governance (ESG) issues. Investors, both retail and institutional, are looking to align their investments with their values, which has prompted a surge in the development of ESG-focused investment vehicles. Moreover, regulatory support and frameworks in the U.S. are beginning to prioritize sustainability, adding momentum to the sector.

Europe stands out as a frontrunner in sustainable investing, with countries like Norway, Sweden, and the Netherlands leading the charge. European financial markets have integrated ESG factors more comprehensively into investment strategies. The European Union has implemented various regulations and initiatives to encourage sustainable finance, such as the EU Taxonomy for sustainable activities and the Sustainable Finance Disclosure Regulation (SFDR). This proactive regulatory environment is enhancing transparency and encouraging greater investment in sustainable assets.

By contrast, regions such as Asia, while growing in their sustainable investing efforts, generally have a smaller proportion of assets being managed under sustainable and