European sustainable fund flows most active in 2022

According to data by iShares, European investors made up the majority of contributions to sustainable investments in 2022. During the year, buying was primarily fueled by ESG-optimised strategies, which had net inflows of $12 billion over the course of the year.

According to data by iShares, European investors made up the majority of contributions to sustainable investments in 2022. During the year, buying was primarily fueled by ESG-optimised strategies, which had net inflows of $12 billion over the course of the year.

Throughout the year, $54 billion was added to Emea-listed sustainable ETPs. Despite the fact that sustainable ETPs were a preferred option for European investors, the asset class’s contributions fell in 2022 compared to the year before.

Emea listed Sustainable ETPs saw total flows of $100 billion in 2021, an increase of $46 billion from total flows in 2022.

ESG best-in-class strategies were the most popular among sustainable fixed income flows, adding $19 billion over the course of the year.

Even if sustainable investing has becoming increasingly popular across Europe, there remain worries about how it will develop. In addition to widespread worries about “greenwashing,” research released last week by the European Securities and Markets Authority (Esma) revealed that less than 1% of sustainable funds in Europe met the prerequisite standards outlined by the EU’s proposed voluntary Ecolabel.