
Morningstar makes a compelling case that ESG hasn't disappeared. It has quietly embedded itself into conventional investing practice.
Key takeaways:
For the first time since 2018, investors pulled money from ESG-focused funds. But $3.7 trillion in global ESG fund assets remain
About 88% of PRI signatories now incorporate financially material sustainability factors across major decisions
69% of the US market ($42.7 trillion) was covered by an active stewardship policy in 2025, even though only 11% of US investments are officially labeled "sustainable"
72% of private market respondents incorporate ESG factors into their investment process, per PitchBook's annual survey
Renewables have gone mainstream, and advances in fintech and data science are helping portfolios reflect specific exclusions and priorities while staying competitive
Nearly half of institutional investors expect to grow or maintain their sustainable investing market share
The bottom line from US SIF CEO Maria Lettini: ESG integration has "taken root" in conventional investing. The label may be under fire, but the practice is now part of how serious investors manage risk.
morningstar.com/markets/is-sus…
#SustainableInvesting #ESG
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