Asset management: how ESG has become essential thanks to the crisis

Posted on Nov 10, 2020 at 11:18 am

Funds that use environmental, social and governance factors in a truly discriminatory manner are no longer purely marketing products, but are now at the heart of the strategy of asset managers. The great success of the French public SRI label, created in 2016 and awarded to more than 500 funds from 81 management companies, owes nothing to chance. Statistics on open ESG funds marketed in Europe confirm that 2020 marks a decisive stage in their development.

At the end of the third quarter, their outstandings as measured by Morningstar, represented 882 billion euros (translated into dollars, the figure passed the symbolic 1,000 billion mark), representing growth of 41% in one year. Of course, this growth is partly linked to “conversions” of traditional funds to ESG criteria. “In the third quarter, we identified 32 conventional funds that were reoriented towards ESG strategies, of which 29 also changed their name”, notes Hortense Bioy, director of sustainable research for the EMEA / APAC zone at Morningstar. Thus, the 20-year-old LBPAM Actions 80 fund has become LBPAM ISR, in accordance with La Banque Postale Asset Management’s strategy of becoming at the end of 2020 the first French manager to offer a range of open funds 100% labeled SRI.

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