What are the Trends to watch for responsible investors in 2024?

 

April 2024 | 3 min read  

Responsible investing is quickly becoming more mainstream and is gradually converging towards a more standardized and regulated environment¹.

So, to cut through the noise, Amundi has published its 1st Responsible Investment Views, which offers insights on the main trends to watch in 2024 as well as implications for investors.

Elodie Laugel, Chief Responsible Investment Officer at Amundi declares, “The coming years will be critical. A slower transition would certainly bring huge environmental, financial, economic costs that need to be carefully identified. On the opposite, we see great opportunities if the world enters into a steady and orderly transition scenario. Investors should stay the course! Consistency and clarity around the investment value proposition will be key components of their success.”

Vincent Mortier Chief Investment Officer at Amundi said, “Despite challenging market conditions, responsible investment flows keep increasing in the long run. Favourable trends should continue to support its future development as 67%² of global asset owners are convinced of the materiality of ESG factors. In addition, we expect thematic and impact strategies to dominate the market in 2024 and onwards.” While 2023 was a year of transition, Responsible Investment resumed its growth:

Amundi believes 2024 will be a year of acceleration for Responsible Investment, driven by promising structural trends, particularly around 6 important markers

1. The US Inflation Reduction Act to the EU Green Deal Industrial Plan constitute significant Tailwinds for the Green Tech & Clean Energy sectors
2. Climate: The Net Zero compass remains more than ever relevant despite the need for more ambitious climate action from policy makers
3. ‘Blended finance’ will play a critical role to close the financing gap in emerging countries
4. Sustainability risks are multi-faceted and investors’ focus on Nature and Just Transition should increase.
5. EU Sustainable Finance Action Plan: significant milestones have been reached in terms of transparency, that should pave the way to more capital flowing in to support sustainable and inclusive growth
6. What are the implications of the ESG and Greenwashing backlash in the US and in Europe?

What we expect?

In 2024, we expect asset managers to continue enhancing transparency at product level, and to clarify how commitments at an asset management company level relate to product level objectives. Regulators have a key role to play in preventing polarisation of the debate by enforcing greater transparency and providing a common framework.

Click here to read the full Amundi 2024 Responsible Investment Views 

Read 

Sources:

¹ Amundi 2024 Responsible Investment Views

²Morningstar “Voice of the Asset Owner Survey 2023” survey

Important information

Unless otherwise stated, all information contained in this document is from Amundi  Asset Management S.A.S. and is as of 11 April 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 11 April 2024
Doc ID: 3390928