October 07, 2008
European SRI Market Reaches $3.7 Trillion in 2007
by Robert Kropp
Eurosif study finds 102% increase in SRI assets since 2005 fueled by increasing relevance of
environmental, social and governance issues for institutional investors and high net worth
In its third study of the sustainable and responsible investment market in Europe, Eurosif, a partnership of national Social
Investment Forums within the European Union, found that total SRI assets under management reached
$3.7 trillion in 2007. This represents a 102% increase in such investments since 2005.
Based on a survey of asset managers and
owners, the Eurosif study revealed that for institutional investors, responsible investment has
increasingly become a matter of risk management, with environmental factors foremost among their
concerns. The trend has been accompanied by increasing acceptance of environmental, social and
governance (ESG) considerations among mainstream financial services.
The study also found
growing interest in responsible investment among individuals, particularly high net worth
Eurosif measured Core SRI, which employs ethical exclusions as well as
positive screening and implies a values-based approach by investors, at $710 billion in 2007. The
study estimated the growth of Core SRI between 2005 and 2007 at 115%.
Broad SRI, whose
practitioners are mostly large institutional investors and which represents the successful
inclusion of SRI in mainstream investment, reached $3 trillion in 2007. The growth of Broad SRI
between 2005 and 2007 was estimated at 100%.
The Eurosif study covered thirteen countries,
including four—Denmark, Finland, Norway and Sweden—not included in previous studies.
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