MSCI Releases Funds and the European Sustainable Finance Landscape Report

Written By Ava Morisi

Overview:

A recent MSCI report reveals that European sustainability funds have surged to €8 trillion under the SFDR Article 8 and 9 rules, highlighting a significant shift towards sustainable investing in the region.

The Surge in Sustainability Funds

The MSCI report shows that as of June 30, 2024, assets under management (AUM) for Article 8 and 9 funds reached €6.9 trillion and €330 billion, respectively. This surge reflects the growing demand for sustainable investment options among European investors.

Improved Fund Disclosures

One of the key findings of the report is the significant improvement in fund disclosures. The number of funds submitting data via the European ESG Template (EET) has tripled compared to 2023, indicating better transparency and reporting practices.

Popular Fund Types

Equity and bond funds account for over 80% of the assets, with global equity strategies being particularly popular among SFDR Article 8 and 9 funds. This trend underscores the strong investor interest in sustainable investment opportunities.

The MSCI report underscores the rapid growth of sustainability funds in Europe, driven by regulatory frameworks and investor demand. With improved disclosures and a focus on sustainable investment options, European funds are leading the way in the global shift towards ESG investing.

Read the full report here:

https://www.msci.com/documents/10199/7c43dc10-06f8-4dfc-3db9-6ddba9329e07

Ava Morisi
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