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In 2018, investments in black assets were more popular among sovereign investors, as green assets at this time had a total investment value of under * U.S. dollars. From 2020 to 2021, the level of investment in black assets roughly halved, while the value of green asset investment almost tripled. This trend continued as the value of green asset investment is more than double the value of black asset investment in 2024. A surge in green investment has been evident, as the assets under management of sustainable funds worldwide more than doubled in just five years.

How do green investments perform in comparison to peers?

When comparing median returns of sustainable funds to non-ESG funds between 2019 and 2023, sustainable funds outperformed traditional funds. During this period, sustainable funds achieved a total median return of approximately ** percent, compared to ** percent for traditional funds. This strong performance highlights the growing appeal of sustainable investing as both a financially rewarding and responsible choice.

What are ESG exchange-traded funds (ETFs)? 

ESG ETFs are investment funds that track indices composed of companies with strong environmental, social and governance attributes while maintaining risk and return profiles comparable to their parent index. As demand for responsible investing grows, ESG ETFs continue to gain popularity among investors seeking financial returns while making a positive societal impact. The largest ESG ETF by net assets worldwide is BlackRock’s iShares ESG Aware MSCI USA ETF, with billion U.S. dollars in assets, followed by JPMorgan ETFs (Ireland) ICAV - US Research Enhanced Index Equity (ESG) UCITS ETF, with billion U.S. dollars.