Sustainable investment markets in Germany, Austria and Switzerland reach record high
For ten years, the FNG market report has been documenting the sustainable investment success story.
Sustainable investment market in Germany, Austria and Switzerland reaches record level of 197.5 billion euros – Growth of 47 per cent on the previous year – Exclusion criteria have entered the mainstream – Impact investment strategy showing particularly strong growth, up 74 per cent
Berlin/Vienna/Zurich, 13 May 2015 –2014 has added yet another successful chapter to the story of the sustainable investment market in Germany, Austria and Switzerland. According to the market report presented by the sustainable investment forum Forum Nachhaltige Geldanlagen (FNG) on 13 May, the volume of the market currently stands at 197.5 billion euros. The volume of investments in which not only financial but also environmental, social and governance-related criteria are taken into account has thus increased by 47 per cent within the space of a year.
“The growth in sustainable investments goes hand in hand with the expansion of individual sustainable investment strategies and criteria into the mainstream of the financial market,” explains Volker Weber, Chair of the Board of Directors at FNG. According to FNG statistics, investments in cluster munitions and anti-personnel mines are now taboo for investments valued at 4.14 trillion euros, and the ABC weapons exclusion criterion is applied to assets worth hundreds of billions of euros. “This market segment, which we refer to as responsible investment, is becoming increasingly important and at the same time fulfilling a key function,” states the financial expert. “It is paving the way for the gradual introduction of additional, stricter criteria into the wider financial market.”
For sustainable investment funds and mandates alone, the FNG statistics for the year 2014 give the following picture: the volume in the three countries stands at a combined total of 120.9 billion euros and is thus 44 per cent higher than the value for the previous year. Double-digit percentage growth was recorded not only in Germany (+70%), but also in Austria (+36%) and Switzerland (+26%). Sustainable funds and mandates’ share of the overall market was highest in Austria, at 5.7 per cent.
The market report also reveals that in the three countries, all eight recorded sustainable investment strategies achieved gains in 2014. Claudia Tober, FNG’s Executive Director, summarizes the situation as follows: “Exclusion criteria, the best-in-class approach and the integration of sustainability criteria into traditional financial analysis remain the most important approaches.” The expert on sustainable investments adds, “While impact investment ranked lowest in terms of volume, it has made particularly strong gains, achieving growth of 74 per cent.” The aim of impact investments, alongside financial criteria, is to exert influence on the social and environmental concerns of companies and organisations. FNG has been recording this strategy since 2011.
During its ten-year history, the FNG market report has also taken on board other new trends and developments. “FNG’s market reports now document an entire decade of sustainable investment in Germany, Austria and Switzerland,” says Claudia Tober, FNG’s Executive Director. “During this time, the volume of sustainable investments has increased more than 15-fold. However, FNG’s annual statistics also illustrate the increasing differentiation of the market.” The anniversary issue – the FNG Market Report 2015 – is the first to focus on a particular theme, with a special section on Engagement and Voting.
FNG has been publishing comprehensive data on the sustainable investment markets in Germany, Austria and Switzerland in its Sustainable Investment Market Report since 2005. The data for the annual statistics is collected by FNG and the methodology used is in line with that of the European umbrella organisation Eurosif (European Sustainable Investment Forum). Publication of the Sustainable Investment Market Report 2015 would not have been possible without help from the following sponsors and supporters: Notenstein Financial Services, Union Investment, Absolut Research, oekom research AG, Raiffeisen Schweiz, Metzler Asset Management GmbH and 21ökofinanz-21 e.V.
Marktbericht Nachhaltige Geldanlagen 2015 – Deutschland, Österreich und die Schweiz (Sustainable Investment Market Report 2015 – Germany, Austria and Switzerland)
Sustainable Investments in Switzerland – Excerpt from the Sustainable Investment Market Report 2015
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Forum Nachhaltige Geldanlagen (FNG), the industry association for sustainable investment in Germany, Austria, Liechtenstein and Switzerland, represents more than 180 members which are working to promote sustainability in the financial sector. These include banks, investment companies, rating agencies, financial advisers and academic institutions. FNG promotes dialogue and the exchange of information between the worlds of business, academia and politics and has been working to improve the legal and political framework for sustainable investments since 2001. FNG awards the Transparency logo for sustainable mutual funds, publishes the FNG Sustainability Profiles and is a founder member of the European umbrella organisation Eurosif.
The Sustainable Investment Market Report – Germany, Austria and Switzerland is the central yearly publication of Forum Nachhaltige Geldanlagen (FNG).It serves industry insiders, journalists, scholars, and politicians as a source of up to date market data.Besides volume figures, which are already collected since 2005, the market report provides a wide range of supplementary data and information, which allow deriving current trends and developments.In addition, the chapter on Switzerland is separately published in an English version.Both publications are available for download at the FNG homepage.