Global ESG Finance Market Analysis Forecast 2024 - 2033
5 Dec, 2024
What Is The Scope Of The Global ESG Finance Market?
ESG finance refers to the integration of environmental, social, and governance (ESG) factors into financial decision-making and investment processes. This approach considers how a company's operations and practices impact the environment, society, and governance structures, and aims to promote sustainable and responsible investing. Investors and financial institutions use ESG criteria to identify risks and opportunities associated with sustainability and social responsibility.
ESG Finance Global Market Report 2024 provides data on the global esg finance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The esg finance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global ESG Finance Market Expected To Grow In Size And Annual Rates?
The ESG finance market has experienced rapid expansion, increasing from $5,716.79 billion in 2023 to $6,347.59 billion in 2024, reflecting a CAGR of 11%. This growth stems from heightened climate change awareness, regulatory advancements, the rise of green bonds, corporate sustainability efforts, and shifting consumer preferences. Expected to reach $9,690.94 billion by 2028 at a CAGR of 11.2%, future growth will be driven by robust regulatory frameworks, climate risk management, corporate sustainability goals, and institutional investments. Emerging trends include improved ESG data analytics, AI integration, blockchain applications, and advanced tools for sustainability measurement.
What Main Forces Are Fueling Expansion In The ESG Finance Market?
The expansion of the ESG finance market is expected to be influenced by the increasing investments in green bonds. Green bonds, used to fund environmentally sustainable projects, are seeing rising investments driven by the desire for socially responsible investments. This trend is supported by institutional investors seeking environmentally focused opportunities. According to the International Finance Corporation in May 2024, green bond issuance is expected to grow annually by 7.5%, reaching $156 billion by 2025, up from $135 billion in 2023.
Get Your Free Sample Of The Global ESG Finance Market ReportWhat Are The Primary Segments In The Global ESG Finance Market?
The ESG finance market covered in this report is segmented –
1) By Investment Type: Equity, Fixed Income, Mixed Allocation, Other Investment Types
2) By Investor Type: Institutional Investors, Retail Investors
3) By Transaction Type: Green Bond, Social Bond, Mixed Sustainability Bond, ESG Integrated Investment Funds, Other Transaction Types
4) By Industry Vertical: Utilities, Transport And Logistics, Chemicals, Food And Beverage, Government, Other Industry Verticals
Which Key Trends Are Driving Changes In The ESG Finance Market?
In the ESG finance market, companies are focusing on AI-powered data analytics platforms to provide real-time insights into environmental, social, and governance factors, helping investors make more informed decisions. ESG Data Services, a Canada-based firm, launched its ESG Analytics platform in March 2022, using AI to analyze vast ESG data, offering investors and companies actionable insights into risks and opportunities.
What Is The Leading Region In The ESG Finance Market?
Europe was the largest region in the ESG finance market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the ESG finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.