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Almost 60% of Mutual Fund Assets Will Be ESG by 2025, PwC Says

Hurricane Delta makes landfall in Lake Charles, Louisiana on Oct. 9.

Hurricane Delta makes landfall in Lake Charles, Louisiana on Oct. 9.

Photographer: Luke Sharrett/Bloomberg
Alastair Marsh

ESG investing is the most significant development in money management since the creation of the exchange-traded fund two decades ago and it will reshape finance just as passive funds have.

That’s the finding of a new report from PwC that forecasts as much as 57% of mutual fund assets in Europe will be held in funds that consider environmental, social and governance factors by 2025, or 7.6 trillion euros ($8.9 trillion), up from 15.1% at the end of last year. In addition, 77% of institutional investors surveyed by PwC said they plan to stop buying non-ESG products within the next two years.