European Funds See ESG Inflow Growth

ETFGI, a global research firm, says the uptick in ESG assets continues to accelerate due to booming investor interest. Global environmental, social and governance assets in ETFs and ETPs have reached $47.33 billion.

The research firm said that ESG ETFs and ETPs saw inflows of $2.8 billion in September. That was a 7.8% increase in assets from the previous month. In August, ESG assets in these alternatives sat at a record $47.33 billion.

ETFGI Report on September

ETFGI released its latest update on the size and scale of the ESG market. The firm’s monthly report showed a solid uptick in new products in the space. Europe has the largest share of ESG classified products. The U.S. and Asia-Pacific (less Japan) were the ranked second and third.

ETFGI says that the number of ETFs and ETPs in the space hit 253 in September. The firm cited 686 listings on 29 exchanges in 58 countries.

Passive Investing Sees ESG Boost

The report comes shortly after markets received an update from Morningstar on the state of sustainability. According to Morningstar’s recap on sustainabile funds, Europe continues to see a large uptick in capital. According to the firm’s Sustainable Fund Flows piece, the market saw 70.4 billion euros flow into sustainable funds during the second and third quarter of the year.

That figure represents about 40% of all capital flowing into European funds during that period.

[Related: Globally, ESG Derivatives Are Taking Off]