Eurosif, AIR and the University of Hamburg jointly publish new methodology for future market studies on sustainability-related investments in Europe

Eurosif today published a new methodology for the purpose of future market studies on sustainability-related investments across Europe. The methodology and accompanying questionnaire are set out in a report explaining the approach taken, the proposed investment categories and its core features.

The methodology was developed over the course of 2023 by Eurosif’s SRI Study Group (SSG) in cooperation with Prof. Timo Busch from the University of Hamburg and Eric Pruessner from Advanced Impact Research (AIR). Market practitioners from across Europe were engaged in this process.

Past market studies on sustainability-related investments typically gathered data on a range of different sustainability-related investment approaches and aggregated them to one of a number of “sustainable investments”. However, these statistics did not differentiate between investments based on their investment strategy and/or objectives to actively support the transition towards a more sustainable economy which since the introduction and rollout of the EU sustainable finance framework is becoming an increasingly prominent feature of the European sustainable investment market.

The revised methodology is designed to reflect the evolving nature of the market and proposes four distinct categories of sustainability-related investments that reflect on the investments’ ambition level to actively contribute to the transition towards a more just and sustainable economy. These categories are: Basic ESG Investments, Advanced ESG Investments, Impact-aligned Investments, and Impact- generating Investments.

The methodology will serve as a basis for future market studies conducted by Eurosif in cooperation with its members. The methodology will be implemented over the course of 2024 with the first market study expected in 2025 covering the data for 2024. The methodology will also be available to all Sustainable Investment Forums globally and other stakeholders. This methodology is not intended to reflect the categorisations of sustainable products as established within regulatory frameworks, but to be sympathetic with such systems and labels as they emerge.