Overview

The Global Sustainable Investment Review (GSIR) is the seventh edition in a biennial benchmark series that provides a mapping of the state of responsible and sustainable investment across the globe’s primary financial markets. Produced by the Global Sustainable Investment Alliance (GSIA), which is an international collaboration of membership-based sustainable investment organisations, the report covers detailed regional insights from the United States, Canada, Japan, Australia, New Zealand, the United Kingdom, and Europe. It provides an analysis of market trends and the transition toward a net-zero economy, integrating high-level fund data and regional survey insights provided by member associations.

Purpose

The report aims to deepen the practice of sustainable, responsible, and impact investment through international cooperation and shared knowledge. It exists to provide a global perspective on sustainable finance for asset owners, investment managers, and policymakers, helping them understand both the scale of the market and the barriers preventing further capital flows. By identifying misaligned incentives, such as the policymaker investment dilemma, the review informs strategies to align financial flows with global climate goals. It also seeks to promote standardised terminology to ensure consistency across the global asset management industry, reducing systemic risk and reputational exposure for investors with net-zero commitments.

Methodology

The methodology for this report involves a multi-faceted analysis of market data, regulatory disclosures, and qualitative survey results. This edition features a partnership with Morningstar to analyse legal fund disclosures from their global database, covering approximately USD$62 trillion in fund assets. This quantitative data is supplemented by survey results from GSIA member organisations, including Eurosif, UKSIF, US SIF, JSIF, RIA Canada, and RIAA. The analysis utilises a harmonised set of definitions for investment approaches, which include:

• Norms-based screening and exclusionary screening
• Environmental, Social, and Governance (ESG) integration
• Thematic investing and stewardship
• Impact investing

The report also employs the PIVOT framework to categorise recommendations related to policy vacuums, self-interest, mis-valuation, inactive ownership, and transition misalignment.

Use for Finance Professionals

Finance professionals can utilise this benchmark report to navigate the complex and evolving global landscape of sustainable finance regulations and disclosure requirements. The detailed regional highlights allow asset managers and owners to benchmark their internal practices against international peers and stay informed about mandatory reporting standards, such as the Sustainable Finance Disclosure Regulation (SFDR) in the EU and the Sustainability Disclosure Requirements (SDR) in the UK. The report provides a clear distinction between various investment objectives and approaches, which is essential for accurate product labelling and the prevention of greenwashing. Furthermore, the analysis of capital flows into green economy sectors, such as renewable energy, waste management, and energy efficiency, helps professionals identify emerging investment opportunities and structural market shifts. By understanding the policymaker investment dilemma, practitioners can better assess the risks associated with policy volatility and the alignment of their portfolios with national and global transition objectives. The report also highlights emerging best practices that facilitate greater interoperability between different jurisdictions, aiding in the management of cross-border investment portfolios.