Investors Expect European ESG ETF Market to Grow in 2023

The latest BNP Paribas Asset Management (BNPP AM) European ESG ETF Barometer survey reveals that investors expect the market to continue to expand over the course of this year. In fact, two thirds (66%) of investors surveyed said they consider the ETFs that are available on the market to have real sustainability benefits and a positive impact on ESG issues. The three most important criteria used by investors when selecting ESG ETFs were sustainability labels and certification (18%), the management company’s ESG credibility and expertise (15%) and tracking error against benchmark (14%), the survey found. Further, interest in low-carbon, emissions reduction or Paris Aligned Benchmark (PAB)aligned strategies have risen by 22 percentage points in the past six months, from 14% to 36%. “The results of the latest survey show that investor expectations can change very quickly depending on market conditions and regulatory developments,” Lorraine Sereyjol-Garros, Global Head of Development ETF & Index solutions at BNPP AM, said. “In this changing environment, sustainable index strategies continue to attract significant inflows, particularly those aligned with the objectives of the Paris Agreement.” 

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