ESG UCITS funds in the EU are projected to reach €11 trillion in assets under management (AuM), an estimated 80.8% of total UCITS AuM, by 2028, according to a new PwC report. This forecast, representing a compound annual growth rate (CAGR) of 10.2% for the period 2024-2028, reflects continued momentum towards sustainable investing across Europe.
Published today, EU ESG UCITS Moving Forward marks the sixth edition of PwC Luxembourg’s EU ESG UCITS series, offering a comprehensive overview of the evolving ESG UCITS ecosystem across the EU. The report shows that investment flows into EU ESG UCITS strengthened in 2024, with Article 8 and Article 9 funds reaching €7.4 trillion by year-end, up from €6.2 trillion in 2023.
Key findings include:
Michael Horvath, Sustainability and Sustainable Finance Leader at PwC Luxembourg said:
“Despite a perceived political rollback on sustainability in Europe, demonstrated by the European Commission’s proposed Omnibus package, the sustained growth trajectory of EU ESG UCITS, reaching €7.4 trillion AuM in 2024, is a testament to increasing investor confidence and commitment to sustainable strategies. As a revamp to the SFDR is expected to be published in Q4 2025, we firmly anticipate that this strong momentum will not only continue but accelerate, with ESG UCITS projected to account for 80.8% of total UCITS AuM by 2028. This is more than a market trend: it signals the enduring shift in how capital is allocated across the EU, with ESG considerations now embedded in mainstream investment decisions.”
Geoffroy Marcassoli, EMEA AWM ESG Leader at PwC Luxembourg said:
"At a time when scepticism towards ESG is running high, the findings of our report show that in the European asset management industry, funds that align with Articles 8 and 9 of the SFDR are holding ground, continuing to attract capital flows. As scrutiny over sustainability credentials grows, aptly demonstrated by the growing number of pension funds terminating their mandates with US-based managers who have backtracked on ESG, sustainability assurance comes to mind as an effective tool that asset managers can use to demonstrate the viability and accuracy of their claims."
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Pauline André
Director, Head of Marketing & Communications, PwC Luxembourg
Tel: +352 49 48 48 3582