US SIF Foundation: Climate Action Tops 2024 Sustainable Investing Priorities

WASHINGTON, D.C., December 18, 2024 – The US SIF Foundation’s 15th Report on US Sustainable Investing Trends highlights climate action as the leading priority for sustainable investors, both in the short and long term. The report reveals that at the start of 2024, US sustainable investment assets totaled $6.5 trillion, accounting for 12% of all professionally managed US assets.

The 2024 US SIF Trends Report offers in-depth data on asset management firms and institutional asset owners employing sustainable investment strategies. It examines key environmental, social, and governance (ESG) issues shaping portfolio management, while also documenting the size and growth of the sustainable investment market, the findings of the Trends Survey, and emerging industry trends.

Key Insights and Survey Results

Leveraging advanced data analytics and AI tools, US SIF doubled survey participation compared to 2022, gathering responses from over 250 organizations. The findings underscore that addressing climate change and advancing the clean energy transition are top priorities for sustainable investors. Additionally, 73% of respondents anticipate market growth in sustainable investing over the next one to two years. However, only 39% expect their own organizations to increase sustainable investment efforts, suggesting the growth may largely stem from broader market participants.

Since its inception in 1995, the Trends Report has chronicled the transformation of sustainable investing from a niche, values-driven practice to a mainstream financial strategy focused on risks and opportunities. The 15th edition comes at a pivotal moment, as the industry faces challenges such as ESG pushback and greenwashing claims. Despite these obstacles, sustainable investing offers a pathway to address systemic global challenges like climate change, social inequities, and corporate governance.

Methodology Advancements

The 2024 report builds on the 2022 methodology, refining data collection and analysis for greater precision. In partnership with SDGlabs.ai, the report establishes baseline measures of sustainable investment, offering a snapshot of the current market to guide future comparisons. This enhanced methodology ensures consistent tracking and data interpretation, enabling stakeholders to make informed decisions.

Leadership and Expert Commentary

Maria Lettini, CEO of US SIF, emphasized the significant opportunities in climate-focused investing:
“Investor interest in capturing the opportunities of the climate transition remains substantial. Regulatory obligations, shifting client preferences, inter-generational wealth transfers, and the increasing financial risks from climate change are driving this interest.”

Andreas Hoepner, Chair & Co-Founder at SDGlabs.ai, highlighted the report’s rigorous methodology:
“This foundation allows us to confidently monitor trends and analyze actual behaviors. It provides a baseline for future comparisons and sets the stage for more frequent, forward-looking research.”

Anthony Eames, Managing Director at Calvert Research and Management, underscored the report’s value:
“The Trends Report plays a critical role in identifying drivers of value. It is an invaluable resource for understanding trends that impact sustainable investment portfolios.”

Jared Fernandez, Senior ESG Analyst at Boston Trust Walden, pointed to the importance of sustainability in business:
“To stay competitive in a dynamic environment, companies must manage sustainability risks and seize opportunities. The 2024 Trends Report provides key insights based on credible data, making it an essential resource for the industry.”

Dan Hanson, Managing Director at Neuberger Berman, stressed the importance of stewardship:
“This report highlights the intrinsic value of stewardship in creating resilient outcomes. Shareholder engagement remains a critical strategy for sustainable investing.”

A Path Forward

The 2024 US SIF Trends Report reaffirms the growing relevance of sustainable investing in addressing global challenges. By offering actionable insights and a rigorous framework for understanding market dynamics, the report continues to serve as a cornerstone for the industry’s evolution.