Research by two consultancy firms says ESG factors are going to drive major changes in investment and the wider financial services sector by 2030. According to a report by PwC, ESG-orientated AUM in North America – which currently stand at US$4.5 trillion – could more than double by 2026. The data also suggests that in a best-case scenario ESG AUM in the region could quadruple to over US$16 trillion, making North America the fastest growing market in the world. According to the report, eight in ten US investors plan to increase their allocations to ESG products in the next two years, with ESG-orientated AUM projected to surge to US$33.9 trillion by 2026 worldwide. The report says: “the overall direction of travel among US investors is clear, even if the complexion of administrations changes and some state governances continue to push back against ESG”. KPMG’s report, based on interviews with 32 leading industry commentators, suggests that ESG will drive a “systemic change” in the financial services sector within the next decade. Judd Caplain, KPMG’s Global Head of Financial Services, said: “[an] area where our voices speak as one is on the imperative to leave the world in a better place than we found it. They expect the ESG phenomenon of recent years to evolve and expand — ensuring that financial services companies drive positive change.”
The asset and wealth management industry could be at the forefront of the burgeoning #ESG revolution as investor allocation to ESG funds increases.
— PwC (@PwC) October 10, 2022