One in every five dollars invested under professional management in the US is now directed to assets that are defined as sustainable, responsible and impact (SRI) investing following a period of stellar growth for the sector. That is the conclusion of a major new report released this week by the US SIF sustainable investment NGO, which reveal SRI assets held in the US have risen 33 per cent in the two years since 2014 to $8.72. The biennial report said much of the growth had been driven by a huge increase in asset managers considering environmental, social and governance (ESG) issues when making investment decisions. It said ESG was considered across $8.10tr of assets, up from 4.8tr in 2014. “The trend of robust growth in sustainable and impact investing is continuing as investment managers apply ESG criteria across broader portions of their portfolios, often in response to client demand,” said Lisa Woll, US SIF Foundation CEO. “Asset managers, institutional investors, advisors and individuals are moving toward sustainable and impact investing to advance critical social, environmental and governance issues in addition to seeking long-term financial returns.” The report said the top two issues considered by asset managers and institutional investors were climate and conflict risk. However, Woll said investors were increasingly engaging with a wide range of ESG issues. “A diverse group of investors is seeking to achieve positive impacts through such strategies as shareowner engagement or investing with an emphasis on addressing climate change, corporate governance, and human rights including the advancement of women,” she said. There are few signs of the trend slowing down, despite fears the Trump administration could seek to undermine the US green economy. The report reveals the growth in SRI investing is being driven by a wide range of factors and now takes in 477 institutional investors and over 1,000 community investing financial institutions. Asset managers said there were a host of reasons for considering ESG factors now, with 85 per cent saying they were motivated by client demand, 81 per cent saying it helped them better manage risk, 80 per cent saying it helped them improve returns, and 64 per cent recognising that they had a fiduciary duty to do so. Moreover, 83 per cent said considering ESG issues was part of their organisation’s mission and 79 per cent expressed a desire to deliver social benefits.