ESG assets set to reach over £7.7trn by 2027

Year-on-year surge in assets directed towards Article 8 and 9 in 2023

Luxembourg old town view in autumn.


Holly Downes

Assets under management (AUM) in ESG Ucits products are expected to reach over €9trn (£7.7trn) by 2027, according to data from PwC Luxembourg.

PwC Luxembourg’s recent report – EU ESG Ucits – Article 8 as a Middle Ground? – said last year saw a significant increase in investment directed towards EU ESG Ucits funds, with Article 8 and Article 9 products reaching €6.2trn (£4.3trn), marking a €1trn (£855bn) year-on-year surge.

Frédéric Vonner, partner and sustainable finance and sustainability leader at PwC Luxembourg, said: “Since the introduction of the Sustainable Finance Disclosure Regulation (SFDR) in 2021, sustainable finance investments have skyrocketed and continue to do so, as evident from the €1trn jump we’ve seen in AUM in Article 8 and Article 9 Ucits funds, reaching €6.2trn in end-2023.

“We do not expect this growth to slow down anytime soon, and now project ESG Ucits AUM in the EU to reach €9.4trn by 2027. Our latest data showcases a shift towards more diversified sustainable investment strategies. While equities remain dominant, we see growing interest in Article 8 money market funds and passive options such as Article 8 and Article 9 ETFs, which now represent 24.4% of the total AUM of EU ETFs.

“With the ongoing review of the SFDR, investors can expect even greater clarity and standardisation in the years to come, which may further propel the growth of sustainable investing in the EU.” 

The report also revealed the top asset managers by AUM for Article 8 and Article 9 funds. BlackRock leads among asset managers with respect to Article 8 Ucits AUM (€432.6bn, £370bn), followed by JP Morgan (€333.3bn, £285bn) and Amundi (€321.9bn, £275bn).

Further, Pictet topped the list with an AUM of €25bn (£21bn) in its Article 9 funds, followed closely by Handelsbanken (€24.8bn, £21.2bn) and Candriam (€23.9bn, £20.4bn).

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