Finance

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

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

Photographer: Luke Sharrett/Bloomberg
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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.