The sustainable finance market has seen exponential growth, with its size expanding from $5,487.20 billion in 2023 to $6,718.20 billion in 2024, achieving a compound annual growth rate (CAGR) of 22.4%. This growth can be attributed to rising investor demand and risk management practices, the proliferation of corporate social responsibility initiatives, increasing regulatory support, a growing focus on sustainable supply chains, and rising investments in renewable energy. The market is expected to grow further, reaching $15,313.29 billion by 2028, with a CAGR of 22.9%. The projected growth is driven by a heightened focus on reducing carbon footprints, increasing demand for sustainable investments, growing awareness of sustainability across various sectors, a rising demand for financial instruments and services, and greater access to green bonds. Major trends anticipated in the forecast period include technological advancements, integration of artificial intelligence, adoption of green technologies, climate resilience financing, and the growth of sustainability-linked loans.
Global Sustainable Finance Market Key Driver
The sustainable finance market is expected to benefit from the rise in corporate social responsibility (CSR) initiatives. CSR involves businesses contributing positively to society and the environment beyond profit maximization. This trend is driven by ethical considerations, brand image, and consumer expectations. CSR initiatives align with sustainable financial practices and attract investment. For example, Takeda Pharmaceutical Company Limited announced a $19.5 million commitment to CSR in 2022, bringing its total investment to $39.5 million. This rise in CSR initiatives supports the growth of the sustainable finance market.
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Global Sustainable Finance Market Segments
The sustainable finance market covered in this report is segmented –
1) By Investment Type: Equity, Fixed Income, Mixed Allocation, Other Investment Types
2) By Transaction Type: Green Bond, Social Bond, Mixed-Sustainability Bond, Environmental, Social And Governance (ESG) Integrated Investment Funds, Other Transaction Types
3) By Investor Type: Institutional Investors, Retail Investors
4) By Industry Vertical: Utilities, Transport And Logistics, Chemicals, Food And Beverage, Government, Other Industry Verticals
By Geography:The regions covered in the sustainable finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the sustainable finance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
Major Sustainable Finance Industry Players
AXA Group, Bank of America Corporation, Citigroup Inc., The Hongkong and Shanghai Banking Corporation, BNP Paribas, Morgan Stanley Dean Witter Discover & Co., Internationale Nederlanden Group, Mitsubishi UFJ Financial Group, UBS Group AG, Goldman Sachs Group Inc., Barclays plc, Sumitomo Mitsui Financial Group Inc., Aviva plc, Credit Suisse Group AG, BlackRock Inc., Standard Chartered plc, Nomura Holdings Inc., Natixis SA, Northern Trust Corporation, Amundi SA, Macquarie Group Limited, Legal & General Group plc, State Street Global Advisors, Robeco
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Sustainable Finance Market Overview
Sustainable finance refers to the practice of incorporating environmental, social, and governance (ESG) criteria into financial decision-making processes, investment strategies, and lending activities. It aims to support economic growth while reducing environmental pressures, addressing social challenges, and promoting good governance practices. Sustainable finance seeks to align the financial system with sustainable development goals, ensuring that financial flows contribute to sustainable economic growth and the well-being of society and the environment.
Sustainable Finance Global Market Report 2023 provides data on the global sustainable finance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The sustainable finance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
