The top 100 environmental, social and governance funds had an aggregate of $440bn in assets under management in 2022, with Blackrock as the largest ESG fund manager, according to management consultancy Opimas.
The 100 funds were managed by 37 different asset managers with BlackRock accounting for 20 ESG funds with total assets under management of $110bn. In second place was Germany’s DWS with $36bn, followed by Parnassus Investments in the US with $33bn, according to Opimas’ report last December, Benchmarking the World’s Top 100 ESG Funds.
Chief executive Octavio Marenzi and analyst Anne-Laure Foubert said in the report: “Parnassus stands out for the size of its ESG funds – it has only three funds on the list.”
The study highlighted a major deficiency, which is the lack of a clear global agreed definition of ESG. To select ESG funds for its analysis the Opimas team reviewed the legal and marketing documents for each fund, amongst other available information.
Amongst the top 100 ESG funds, equity funds accounted for three quarters of funds by number and 81% of assets under management, followed by fixed income.
Opimas noted that 2022 was a difficult year as all the top 100 ESG funds, except one, had negative returns, although most had positive three-year returns. In addition, on average, the top 100 ESG funds outperformed their benchmarks by 1.1% in 2022.
“The global outperformance of these funds compared to their benchmark is remarkable,” added Opimas. “Despite particularly tough market conditions in 2022, many of the largest ESG funds were able to drive alpha for their clients, regardless of their diverse approaches to ESG investing.”
The most widely used strategies by the top 100 ESG were exclusionary screening, ESG integration and positive screening with impact and best effort strategies less frequently used.
©Markets Media Europe 2022
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FAQs
Amongst the top 100 ESG funds, the biggest asset manager is BlackRock, who accounts for no less than 20 funds with a total AuM of US$110 billion. In second place is DWS with US$36 billion, followed by Parnassus with US$33 billion.
Who is the largest ESG manager? ›
BlackRock
BlackRock is one of the world's largest and most influential investment management firms. Headquartered in New York City, BlackRock offers a wide range of investment and technology services to institutional and individual investors around the globe.
Who is the largest investor in ESG? ›
According to the firm, BlackRock manages more than $800 billion via its sustainable investing platform, and integrates what it considers to be financially material ESG data in investment processes.
What is the market for ESG data in 2024 Opimas? ›
Following two years of unprecedented growth, the market for ESG data continued its winning streak in 2023, albeit with a more modest year-on-year growth rate of 17%. In a new report – The Market for ESG Data in 2024 – Opimas finds that the global market for ESG data should exceed the US$2 billion mark in 2024.
What is ESG in fund management? ›
Environmental, social, and governance (ESG) investing is used to screen investments based on corporate policies and to encourage companies to act responsibly. Many brokerage firms offer investment products that employ ESG principles.
Who are leaders in ESG? ›
The 2023 Most Influential ESG Leaders Share What the Industry Can Do to Achieve ESG Outcomes
- Serena Advani. Founder and CEO. ...
- Ziad Ahmed. CEO and Founder. ...
- Saad Amer. Climate Activist, Founder and CEO. ...
- Tarang Amin. Chairman & Chief Executive Officer. ...
- Jake Bjorseth. Founder and CEO. ...
- William C. ...
- Kerry Docherty. ...
- Suvi-Elina Enqvist.
ESG stands for Environmental, Social and Governance. This is often called sustainability. In a business context, sustainability is about the company's business model, i.e. how its products and services contribute to sustainable development.
Who is the market leader in ESG? ›
Top 100 ESG Companies
| Rank | Company | ESG Score |
|---|
| 1 | ASML Holdings N.V. | 73.13 |
| 2 | Check Point Software Technologies | 72.64 |
| 3 | Hermes International SCA | 71.71 |
| 4 | Linde | 71.26 |
39 more rowsThe world of finance is witnessing a seismic shift towards sustainability, with Environmental, Social, and Governance (ESG) investments at the forefront of this transformation.
Is ESG in demand? ›
In fact, analysis by a specialist recruitment company in the fourth quarter of 2021 stated that the need for qualified ESG specialists is set to reach an all-time high, with demand to fill ESG roles highest in professional services, financial services and technology sectors.
Global ESG fund assets rose by 1.8% quarter-on-quarter to just under $3 trillion at the end of March 2024. Only 97 new funds were launched in the ESG category globally in Q1CY24.
Who invented ESG? ›
It refers to a set of metrics used to measure an organization's environmental and social impact and has become increasingly important in investment decision-making over the years. But while the term ESG was first coined in 2004 by the United Nations Global Compact, the concept has been around for much longer.
What is a ESG risk? ›
The ESG risk score, also known as ESG risk rating, is a quantitative tool that measures a company's exposure to environmental, social and governance risks. The score assesses the organisation's ability to balance its financial performance with sustainability risks.
Where does ESG money come from? ›
IS IT JUST MILLENNIALS DOING IT? No, the vast majority of money in ESG investments comes from huge investors like pension funds, insurance companies, endowments at universities and foundations and other big institutional investors.
Who is the father of ESG? ›
Exactly 90 years ago, the young Professor Adolf Berle, from the Business School of Columbia University, who today is considered the father of the ESG concept, saw major state-owned corporations as the most powerful entities capable of initiating social change.
Who is an ESG manager? ›
The Environmental, Social and Governance (ESG) manager will be responsible for developing and overseeing environmental, social and corporate governance policies and procedures.
