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Europe Expands Dominance in ESG Market After New Rules Enforced

Europe’s dominance in the market for environmental, social and governance investing has picked up after asset managers in the region rebranded products following the introduction of new rules, according to Morningstar.

In the third quarter, Europe accounted for 77% of net inflows into ESG-focused investment products, the research firm said in a report. The U.S. made up 11% of the total, it said. Morningstar said the introduction of the Sustainable Finance Disclosure Regulation in March meant that more ESG funds in Europe now live up to its in-house definitions.