Timeline The evolution of ESG investment

THE EVOLUTION ESG INVESTMENT

Dating back to the 1960s, investment in ESG has been rapidly inclining for more than 50 years, with fewer organisations than ever without some form of sustainability strategy

TIMELINE

1960s: The dawn of sustainable investment

The 1960s saw the beginning of ‘socially responsible investing’. Organisations began to exclude stocks or entire industries from their portfolio should their operations not be seen as ‘socially responsible’.

2005: ESG is born

First used by ‘The Global Compact’, the term ESG was coined in 2005 in a study titled ‘Who Cares Wins’.

2006: PRI initiative launch

In 2006, the New York Stock Exchange launched the ‘Principles for Responsible Investment (PRI)’.

2007: SSEI launch

The following year – 2007 – the ‘Sustainable Stock Exchange Initiative (SSEI)’ was launched.

2013: The rise of ESG investment

In 2013, the World Health Organisation launched a voluntary global monitoring framework to reduce the use of tobacco 30% by 2025.

EVOLUTION OF ESG INVESTMENT

TIMELINE

2015: Global initiatives & EVs 2018 GRI standards

In 2015, 196 parties signed the Paris Agreement to limit global warming to 1.5°C and strengthen efforts to deal with the impact of climate change. 193 parties also adopted the UN’s Sustainable Development Goals (SDGs) in 2015. Launched in 2000, the GRI standards had been adopted by 80% of the world's largest corporations.

2020 Funds & EVs

Between 2020 and 2021, ESG funding more than doubled. In addition, the global market share for EVs increased from 1% in 2010 to 54% by 2020.

2025 Assets under management

It is expected that, by 2025, 33% of assets under management will include an ESG mandate.

2030 Asset valuation

By 2030, ESG assets are expected to reach US$3tn in value.