For years investors have been reluctant to meaningfully participate in surveys on sustainable investment. For example, a survey by Axa Investment Managers (Axa IM) conducted at the end of 2023 shows that 26% of global investors have ESG products in their portfolio. In Europe, the figure is 23%. These figures have hardly changed for years. However, the information provided by investors in no way matches the fund analysis from Scope, or the German Investment Funds Association (BVI). According to the BVI, German investors hold mutual funds with sustainability features worth 697 billion euros. With total fund assets totalling 1,382 billion euros, ESG funds account for 50.4%.

The BVI follows the EU Sustainable Finance Disclosure Regulation (SFDR) classifications of Article 8 or 9. Roughly speaking, an Article 8 fund has some sustainability characteristics, while an Article 9 fund focuses on having a sustainable impact. The two classes are often referred to as light green (Article 8) and dark green (Article 9).

Fund analysis firm Scope has also established that more than every second fund on the market has a sustainability focus. According to Scope's calculations, the proportion of sustainable products in terms of total fund numbers is 55%, and 60% in terms of assets under management. Around 6,200 funds are categorised under Article 8. They manage a total of 4.4 trillion euros. Both the number and the volume of these „light green“ funds have increased compared to the previous year (as of the end of February).

The „dark green“ Article 9 funds are a smaller group, with 613 products and a total volume of 224 billion euros. This fund segment has also grown since the end of February 2023, but not as much as the universe of Article 8 funds. According to Scope, the number of Article 9 funds rose by 9% and the volume increased by 5%.

According to the Axa IM survey. In terms of willingness to invest in ESG funds, 60% say they are not interested, 25% have thought about buying, and 14% did not say whether they would invest in green funds.

In its report, Scope looks at the differentiation criteria for ESG funds and conventional products. The SFDR is clearly an important point of reference for investors. However, Scope primarily considers the investment strategy of the investment manager to be decisive for the peer group categorisation. Fund groups such as „Equities Ecology World’ and ‘Sustainability/Ethics World“ can sometimes include products that are not sustainable at all according to the SFDR.

However there is growing dissatisfaction in the industry and in Brussels with the SFDR categorisation. Article 8 funds in particular seem to inflate the figures. The results of an EU consultation have shown that opinions are divided as to whether product categories should be based on Article 8 and 9, or on new criteria. „It cannot be a simple summary according to SFDR Articles 8 and 9,“ says Roland Kölsch from the Quality Assurance Company for Sustainable Investments (QNG)

Figures from Morningstar DBRS show that, at the end of March, the proportion of ESG funds in Europe was 24.6%. Morningstar counted a total of 5,581 green products in Europe, and in relation to the number of funds, the figure is 23.8%. At Morningstar, the sustainable fund universe includes funds and ETFs that state in their prospectuses and documents that they focus on sustainability or environmental, social and governance factors. There is no mention of the Disclosure Regulation and Article 8 or 9.

The largest share of assets continues to be traditional funds, say industry experts. Investors are still primarily concerned with performance. Karim Chatti, sales professional at Triodos Investment Management says that, "in the end, what flows into green themes is still relatively small.“