Debt Issuance

Green Equity Performance

Source: Sustainable Investing: Emailed Quarterly Tracker from Morgan Stanley: Jan. 19, 2022

1. New Sustainability funds. Since 1Q21 Morningstar has
   added ~3,430 sustainability funds to its database, over half of
   which are article 8 & 9 SFDR funds. In the past this has materially
   impacted AUM growth. That said, new additions are slowing with
   ~600 new funds added in Q4 vs ~2,550 in Q1-Q3.
2. Fund flows & AUM. ESG AUM currently stands at $3.9trn (up
   +5% QoQ, +27% YoY). In 4Q21, ESG net inflows totalled $148bn,
   up +2% QoQ and down -11% YoY.
3. ESG bond issuance. In 4Q21, $251bn in ESG-labeled debt
   was issued globally,+21% YoY. SSA issuance fell 1.5% YoY to
   $126bn; corporate issuance rose 57% to $101bn YoY. Overall
   ESG-labeled issuance totaled $1.08trn in 2021, a 94% increase
   on the 2020 total of $557bn. We estimate that there is ~$2.6trn in
   ESG-labeled debt currently outstanding and expect the pace of
   issuance in 2022 to remain strong, particularly for green and
   sustainability-linked bonds.