The size of the US sustainable investment market is $6.5 trillion, accounting for 12% of the overall $52.5 trillion market dominated by conventional investing, according to a report by US SIF, the trade group for the US sustainable investing industry.
US SIF defines sustainable investments as those specifically identified or marketed as sustainable or as environmental, social, and governance-related in SEC disclosures. These include disclosures for money managers (Form ADV) and asset owners (Form 13F) with US-registered addresses. The US SIF study made adjustments to avoid double counting between institutional investors and asset managers. It also classified assets as sustainable investments “if there is specific and explicit evidence of sustainability-related [assets under management] or percentages.” Among other things, the study reviewed investors’ public websites, their…