The European SRI (Sustainable & Responsible Investment) market has almost doubled since 2008 according to a new report from Eurosif, a European SRI think tank.

Eurosif’s 2010 European SRI Study reveals that the total SRI assets under management have increased from €2.7 trillion to €5 trillion, as of December 31 2009.

Bonds are the favoured asset class among SRI investors, representing 53 per cent of total SRI assets, while equities have dropped down to 33 per cent.

Microfinance funds are also beginning to generate interest from SRI investors and Eurosif predicts the alternative asset class to grown quickly as investors demand integration of ESG criteria into more diverse areas.

Eurosif’s executive director, Matt Christensen said: “The previous questions about ‘financial performance’ of SRI funds are now being replaced by queries about how to best measure the ESG impacts in order to meet the rising expectations of investors.

“These newer questions about how to best tackle and measure ESG factors in fund management will remain an evolving process with many unforeseen and interesting innovations in the coming years”