A major development in the first half of 2025 has been the strong financial performance of sustainable funds.

• Outperformance: Sustainable funds posted higher median returns (12.5% median return in H1 2025) compared to traditional funds (9.2% median return) for the first half of the year. This marks a rebound and the strongest period of outperformance since tracking began in 2019.
• Asset Growth: Assets under management (AUM) in sustainable funds reached a new high of $3.92 trillion as of June 30, 2025, an 11.5% increase from the end of 2024.
• Investor Confidence: The outperformance is driven by factors like greater exposure to strong-performing global and European regions by sustainable funds. It further solidifies the view that investors do not have to sacrifice financial returns for positive environmental and social outcomes. A survey indicated that over 80% of institutional investors expect to increase their allocations to sustainable investments over the next two years, with strong financial performance cited as the top driver.