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Laxman Pai, Opalesque Asia:

Sustainable investing assets under management represent $30.3 trillion globally, according to a biennial review by the Global Sustainable Investment Alliance (GSIA).

In non-US markets - Canada, Europe, Japan, Australia, and New Zealand - there has been a 20% increase in sustainable assets under management (AUM) since the 2020 Global Sustainable Investment Review (GSIR), sponsored by HSBC Global Research.

The report also showcases a maturing of the industry, which includes the adoption of tighter definitions of when a fund can be described as 'sustainable'. These newly imposed standards were a direct response to growing concerns around 'greenwashing' and thus impacted how the US SIF has measured 'sustainable assets' in the period to 2022. As a result of the US SIF's methodology change, the report finds a drop from $17tn in reported AUM in the United States in 2020 to $8.4tn in 2022.

Similarly, in Europe, the long-term trend suggests that the proportion of assets defined as 'sustainable' has been declining by around 5% per year. Increased requirements around disclosure regulations and the tightening of definitions around sustainable investing and its related approaches may be contributing to this decline.

A wider trend is also emerging globally highlighting the need for clearer definitions and a more shared understanding of what makes a sustainable asset 'sustainable'. Further developments can be expected in the years to come, as the ......................

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