2021 Saturna Sustainable Funds Impact Report
Environmental, social, and governance (ESG) investment options have been increasing significantly in terms of both popularity and visibility. Issuance of ESG-linked debt has been growing at an exponential pace with green, sustainable, and social bond issuance rising more than 60% for each of the past two years, to $495 billion issued in 2020. Additionally, corporations are disclosing more ESG data with 90% of S&P 500 companies publishing a sustainability report.
At the same time, flows into US sustainable funds hit a new record in the first quarter of 2021 with nearly $21.5 billion in net inflows – more than double what was seen a year ago and five times greater than the first quarter flows in 2019. Asset managers are responding to the demand with no fewer than 11 new sustainable funds launched in the first quarter alone, and several more existing funds repurposed with an ESG mandate.