ERSIS (Ethibel Research on Sustainable Investments and Savings) 2024 presents a detailed detailed overview of sustainable finance in Belgium, revealing important trends and food for thought in an uncertain international context. Available on the Forum Ethibel website, this report offers an overview of recent dynamics in sustainable savings and investment in our country.
- Sustainable investments down slightly: For the first time since 2013, the Ethibel SRI market index recorded a decline from 56% to 53%. Despite this modest decline, sustainable investment remains a major topic in the Belgian financial market.
- Decline in sustainable savings: Sustainable savings in Belgium fell back to 0.70% of the total savings volume in 2023, marking a slight decline on previous years (0.76% in 2022). This reflects a stabilization in the current economic context.
- Reclassification of so-called “sustainable” funds under European regulations: The study observes a significant drop in funds classified under Article 9 (-4.24%) in 2023, a phenomenon that has continued since the introduction of the SFDR regulations. Article 8 funds, which are more numerous, still account for a significant share of the market.
- The importance of transparency and regulation: European regulations are evolving to offer greater clarity, with increased requirements for sustainability labels. This reinforces the integrity of sustainable financial products and emphasizes the transparency of ESG fund management practices.
- Continued growth in labelled products: The “Towards Sustainability” label, a benchmark for financial sustainability in Belgium, continues to grow for the fourth consecutive year, confirming the importance of quality and transparency in the Belgian market.
At the end of 2023, the total volume of sustainable savings accounts in Belgium reached 2.29 billion euros, marking an 8% decrease compared to 2022. This decrease brings sustainable savings back to their 2020 level, despite the increases observed in 2021 and 2022. By comparison, the total volume of savings in Belgium, including both traditional and sustainable accounts, has also fluctuated significantly, reflecting a general trend.
In 2023, the volume of sustainable investments meeting the ERSIS criteria fell from €136.3 billion to €131.9 billion, marking a decline of 3.2%. Despite this decrease, it could indicate a transition to a more stable phase for sustainable investments, especially in view of developments in previous years and the overall economic context. Indeed, according to BEAMA's annual report, total assets under management in Belgium fell by 10.8% in 2023, reflecting the continuing turbulence in the financial markets.
Since the implementation of the European SFDR regulation in 2021, sustainable financial products have been classified into two categories: Article 8 products and Article 9 products. In 2023, this classification reveals a marked difference between the two types of product. Assets under management classified as article 8 amount to around 120 billion euros, while products classified as article 9 represent around 11.4 billion euros.
In 2023, the market saw a significant reclassification of funds previously classified as article 9, with a notable drop in assets under management in this category. The study observes a 34% year-on-year reduction in assets in Article 9 funds, while assets under management in Article 8 funds increased by 13%. This change reflects ongoing adaptation to the transparency requirements and sustainability criteria defined by SFDR regulations.