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Laxman Pai, Opalesque Asia: European-domiciled ESG assets are poised to reach a value of between €7.4 trillion and €9 trillion ($9.52tn) by 2025, said a study.
According to the research by PwC Luxembourg, by 2025 ESG assets will account for between 46% and 56% of total European Mutual Fund assets; up from 37% by end-2021.
"European-domiciled ESG ETF assets are poised to surge at a CAGR of between 33.3% and 43.0% CAGR, to reach between EUR 684bn and EUR 906bn by 2025," the research, which has been acquired via the accounting firm's interactive ESG dashboard 'The ESG Opportunity in Europe'.
PwC's research revealed that 66% of European Institutional Investors plan to stop investing in non-ESG Funds - two-thirds of which plan to do so by the end 2023. Further, 71.9% are willing to pay a premium for ESG Products.
Data also shows that 72% of European Asset Managers are willing to halt all non-ESG product launches - most of which by 2024.
"European Institutional Investors are demonstrating increased willingness and readiness to absorb higher fees to unlock ESG's risk mitigation and value creation potential - with 71.9% of those surveyed being agreeable to paying a premium on ESG products," the study revealed.
European Institutional Investors are set to significantly bolster their exposure to Article 8 products. While 42% of Investors currently allocate over 30% of their European AuM in Article 8 funds, this figure is set to increase to ...................... To view our full article Click here
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