L’impact investing grows and spreads, and one of the tools that can prove to be fundamental in this phase is undoubtedly theETF. This is highlighted by the latest study by DWS and CREATE-Research: Impact Investing 2.0 – Advancing into public markets.
Per impact investing it is generally understood that forms of investment have a objective social and / or environmental in addition to a return financial. The study shows that the advance of impact investing is driven by two fundamental facts: to reach the global goal of zero emissions by 2050, investments of 100 trillion dollars will probably be required; and to implement the 17 United Nations Sustainable Development Goals (SDGs) by 2030, an annual expenditure of between $ 5,000 and $ 7 trillion will be required. Private markets cannot raise this capital on their own due to their limited scalability. However, publicly traded instruments, such as funds and ETFs, offer the scale and scope needed to mobilize the required capital.
The extent to which this phenomenon progress is illustrated in the report, which is based on a survey of 50 of the majors funds pension in North America, Europe, Asia and Australia, which together manage assets of € 3.3 trillion (as of July 2022). The report notes that the 22% of pension funds have already implemented or are implementing impact investing as part of their passive investments (ETFs, in fact).
So long as net zero they SDG can be tracked with rule-based indices such as Paris-aligned EU and EU climate transition benchmarks, SDG-indexed products, or even green bond indices, as well as thematic passive exposures via ETFs and mandates, can help impact investing break through public markets.
Il 58% believes that the growing interest in i funds thematic it will evolve over time towards impact investing. The 64% believes that the goal of the net zero will favor impact investing, while the 54% expects that SDG provide new opportunities. The 28% of pension funds plans to use the indices SDGthose aligned in Paris and those related to the EU climate transition over the next three years.