What Is The Current and Historic Market Size Analysis Of The Sustainable Finance Market?
The sustainable finance market has seen considerable growth due to a variety of factors.
• The sustainable finance market has seen exponential growth in recent years. It will rise from $6718.2 billion in 2024 to $8272.7 billion in 2025, reflecting a CAGR of 23.1%.
Growth drivers include higher investor demand and improved risk management, corporate social responsibility initiatives, increased regulatory support, greater emphasis on sustainable supply chains, and rising investments in renewable energy.
What Is The Forecast For The Sustainable Finance Market Size?
The sustainable finance market is expected to maintain its strong growth trajectory in upcoming years.
• The sustainable finance market is expected to experience explosive growth, reaching $18,798.56 billion by 2029 at a CAGR of 22.8%.
This growth is attributed to the focus on reducing carbon footprints, growing demand for sustainable investments, and expanding access to green bonds. Trends include AI integration, green technology adoption, and climate resilience financing.
What Are The Essential Drivers Behind The Growth Of The Sustainable Finance Market?
The growth of the sustainable finance market is projected to be boosted by the increasing prevalence of corporate social responsibility (CSR) initiatives. CSR is a company model that strives for a positive societal, environmental, and stakeholder impact, extending beyond mere profit maximization. The escalation of CSR initiatives stems from ethical duties, image and reputation management, employee engagement and retention, risk management, and consumer expectations. The alignment of financial practices with moral, ecological, and societal goals, facilitated by CSR endeavours, magnifies corporate image, attracts investments, and aids the creation of revolutionary financial products. This contributes to a more sustainable and robust global economy. For example, a survey by the International Business Machines Corporation, a US-based technology company, conducted in April 2022 with 16,000 global consumers, revealed that for more than half (51%) of them, environmental sustainability has gained importance over the last 12 months. Hence, the proliferation of CSR initiatives is steering the sustainable finance market's growth.
How Is The Global Sustainable Finance Market Divided Into Key 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
Subsegments:
1) By Equity: Green Equity Investments, Socially Responsible Equity (SRI) Investments, Impact Equity Investments
2) By Fixed Income: Green Bonds, Social Bonds, Sustainability-Linked Bonds, Green Loan Instruments
3) By Mixed Allocation: ESG (Environmental, Social, Governance) Balanced Funds, Thematic Investment Funds (Climate Change, Clean Energy Funds), Sustainable Multi-Asset Funds
4) By Other Investment Types: Impact Investing, Community Investment Funds, Microfinance Investments, Carbon Credit Investments
Pre-Book The Sustainable Finance Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
Which Emerging Market Trends Are Altering The Sustainable Finance Industry?
Leading firms in the sustainable finance market are keen on embracing sustainable finance innovation to enhance their competitive edge. This refers to the conception and usage of fresh financial products, services, and strategies that consider environmental, social, and governance (ESG) criteria, with the aim of encouraging sustainable growth. For example, Ernst & Young Global Limited, a transaction service corporation based in the UK, introduced a new Sustainable Finance Innovation Hub in Dublin in April 2024. The purpose of this is to support global financial institutions in ramping up their contribution towards meeting ESG regulations and reporting protocols. The hub is designed to equip these institutions with the capacity to steer through the complex terrain of sustainable finance and ESG compliance by providing expert advice and specialized services.
Who Are the Key Players In The Sustainable Finance Market?
Major companies operating in the sustainable finance market are:
• 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
What Are The Regional Insights Into The Sustainable Finance Market?
North America was the largest region in the sustainable finance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
