ESG fatigue — and opportunity
Environmental, Social, and Governance (ESG) momentum has slowed globally, but institutional investors are evolving from box-ticking to measurable impact. ESG-aligned AUM in Canada still totals $3.3 trillion, roughly 60% of institutional assets.
| Category | 2020 | 2025 (proj.) | CAGR | Source |
|---|---|---|---|---|
| ESG assets under management ($ tn) | 2.2 | 3.3 | +8.4 % | Responsible Investment Association |
| Firms publishing sustainability reports (%) | 41 % | 62 % | — | GLOBE 2025 Survey |
| Investors demanding quantified ESG metrics (%) | 48 % | 73 % | — | PRI 2025 |
The strategic shift
- Carbon disclosure moves from voluntary to regulated (CSA 2026).
- “S” metrics — inclusion, wage equity — are becoming quantifiable.
- Companies integrating ESG into strategy outperform peers on cost of capital by 80 basis points.
What leaders can do
- Quantify ESG ROI. Treat it as capital efficiency, not compliance.
- Use integrated reporting. Tie ESG outcomes to financial KPIs.
- Standardize metrics early. Prepare for ISSB and CSA alignment.
- Communicate authenticity. Investors detect superficial claims.
Arcus Insight: ESG isn’t dying — it’s maturing. Value creation now lies in integration, not slogans.