ESG Report

Why It Matters

The widespread ESG adoption reshapes investment strategies, influencing risk assessment, capital flows, and corporate behavior on a global scale.

Key Takeaways

• ESG now mainstream across investment industry
• Over 5,300 firms signed UN Principles for Responsible Investment
• $128 trillion assets now under ESG commitments
• ESG evolved from risk checkbox to growth imperative
• Investor demand for ESG data accelerating globally

Pulse Analysis

The rapid mainstreaming of environmental, social, and governance (ESG) criteria marks a watershed moment for capital markets. With more than 5,300 investment firms aligning to the UN Principles for Responsible Investment, the sector now oversees approximately $128 trillion in assets. This collective endorsement moves ESG beyond a compliance exercise, positioning it as a core component of portfolio construction and corporate strategy. The sheer volume of signatories underscores a global consensus that sustainability considerations are integral to long‑term value creation.

For asset managers and institutional investors, the ESG surge translates into tangible shifts in capital allocation. Firms are increasingly integrating climate risk models, social impact metrics, and governance scores into their investment theses, seeking both risk mitigation and upside potential. Data providers are racing to deliver granular, real‑time ESG information, while regulators worldwide tighten disclosure requirements. Consequently, investors who master ESG analytics can differentiate themselves, attract capital, and meet the growing expectations of fiduciaries and end‑users who demand transparent, responsible investing.

Looking ahead, the ESG momentum is likely to intensify as regulatory frameworks solidify and stakeholder pressure mounts. Companies that embed ESG into their governance structures early will gain competitive advantage, accessing cheaper financing and stronger brand loyalty. Meanwhile, investors must stay vigilant to avoid green‑washing pitfalls, ensuring that ESG commitments are backed by measurable outcomes. In this evolving landscape, strategic ESG integration is not merely a moral choice but a decisive factor in sustaining growth and resilience across markets.

ESG Report

Ian Milbourn · General Partner & COO, Notion Capital

The past year has underscored that ESG is no longer a niche concern – it has become a mainstream priority across the investment industry.

Around the globe, investors are embracing environmental, social, and governance principles at unprecedented scale. ESG considerations have evolved from a mere risk‑mitigation checkbox to a strategic imperative for growth. In fact, over 5,300 investment organisations worldwide, managing c$128 trillion in assets, have now signed on to the UN Principles for Responsible Investment representing a clear signal of global commitment.