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Sustainability-focused funds surpass €6 trillion

Research from the Maples Group reveals that sustainability-focused funds in Europe have  grown, with assets now surpassing €6 trillion – a significant increase from €5.5 trillion in 2023.

The report, based on a review of over 27,000 funds in Ireland and Luxembourg, highlights a 24% year-on-year rise in the number of SFDR article 8 and article 9 funds.

Products

Key findings include:

• 33% of all Irish and Luxembourg-domiciled funds are now sustainability-focused,
• Nearly half of all assets held in Irish and Luxembourg funds are in sustainability-focused products,
• Over 54% of new funds launched in Europe in 2024 were sustainability-focused,
• The number of sustainability-focused funds has grown by nearly 60% in the last two years, with assets in these funds increasing by 40%,
• Sustainable ETFs now represent 43% of all ETFs in the region, and
• Over 1,800 sustainability-focused funds in Ireland and Luxembourg are targeting private equity and real assets, reflecting the growing interest in private-asset strategies.

The report also highlights the resilience of the sustainability sector, despite rising anti-ESG sentiment.

Ian Conlon of Maples commented that the growth in sustainable funds amid these challenges underscored the ongoing demand for sustainable investment options from European investors.