Global ETF Survey 2021

Global ETF Survey 2021: Growing Alignment of ETFs to UN SDGs

Trackinsight, global Exchange Traded Funds platform, has released its first quarter update to ESG Observatory – an online hub that provides transparency into the fast-growing market for ESG ETFs with proprietary research, data and screening tools with the Global ETF Survey 2021.

Global ETF Survey 2021

Trackinsight is providing data and tools to guide investors when selecting an ETF; with over 180,000 unique users and 12,000 qualified professional investors using the platform for their day-to-day ETF screening, TrackInsight represents a source on over 7,000 Exchange Traded Funds listed globally.

ESG Observatory is combining the ETF expertise of Trackinsight, the independent ESG Consensus® methodology of Conser and guidance on mapping ETFs against the Sustainable Development Goals provided by the SDG Investors Partnership of UNCTAD – the United Nations Conference on Trade and Development, with the support and the sponsor of Amundi Asset Management.

The latest Global ETF Survey 2021 reveals that in the first 3 months of 2021, 87 new ESG ETFs were brought to market for a total of 758 ESG ETFs now available on exchanges around the world. Assets in ESG ETFs continued their upward
growth trajectory with almost $57 Billion of new flows, to reach a new high of $264 Billion in assets.

As UN Sustainable Development Goals become a benchmark for assessing the sustainability impact of ETFs,
Global ETF Survey 2021 shows that the number of ETFs which align with UNSDGs has risen over the last quarter too, with 15 goals covered by 316 ETFs at the end of Q1 2021.

Nevertheless, those new datas confirm that most assets are aligned with only 3 goals:

  • Climate action (SDG 13),
  • Affordable and clean energy (SDG 7)
  • Industry, innovation and infrastructure (SDG 9)

“When we look at the figures of 2021, the sector sees no sign of slowing down. With the growth of global sustainable investment, policymakers and regulations have played an important role during this quarter. In Europe, the EU Sustainable Finance Disclosure Regulation (SFDR) came into effect this March. And in US, after returning to the Paris Agreement, President Biden has been positioning himself as a leader with the goal of reducing greenhouse gas pollution by 2030. It will take time to examine the efficiency of these new rules towards “greenwashing”, but we firmly believe that a standardized reporting procedure based on transparency and quantification will help the decision-making process for sustainability oriented investors”

Ailing Zhang, ETF Analyst at TrackInsight

“The surge of interest in responsible investing is undeniable and the trend observed last year is continuing in 2021. At Amundi, we believe that ETFs are contributing to democratising ESG investing. However, investors’ sustainability objectives differ and there is no ‘onesize-fits-all’ approach. Investors now benefit from an increasing choice of ESG ETF solutions creating opportunities to generate measurable impact towards the UN SDGs, for example through Paris-aligned climate ETFs. Our role is precisely to guide them and help them select the strategy that best meets their sustainability goals and constraints.”

Fannie Wurtz, Head of ETF, Indexing & Smart Beta at Amundi

The Global ETF Survey 2021 can be dowloaded here

Source: Amundi – Global ETF Survey 2021.

Post Author: Wealth Monaco