In search of a new identity: Is ESG investment a cooling market?

First of a two part series looking at ESG investing in 2025

clock • 4 min read

Is ESG in search of a new identity? In a two-part article, Vernon Dennis explores the current state of play in ESG investing. Part one looks at the UK approach…

Part one: The UK approach  ESG investment boomed in the years leading up to the end of the global pandemic with the European investment market notably outpacing the US market in both scale and total share of assets.  In the European Union (EU) by mid-2024, total assets under management (AUM) in nearly 38,000 ESG investment funds stood at approximately €8trn, out of a total European fund market of €14trn.  Outside of the EU the UK was estimated to have approximately 320 domiciled funds within the scope of the Sustainability Disclosure Requirements' (SDR) fund labelling rules, with A...

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