Sustainable Finance Market Size Poised To Reach USD 2,589.90 Billion By 2030
San Francisco, 31 Aug 2023: The Report Sustainable Finance Market Size, Share & Trends Analysis Report By Asset Class, By Offerings, By Investment Style, By Investor Type, By Region, And Segment Forecasts, 2023 - 2030
The global sustainable finance market size is expected to reach USD 2,589.90 billion by 2030, growing at a CAGR of 22.6% from 2023 to 2030, according to a new report by Grand View Research, Inc. The rise of impact investing has been a significant driver of the sustainable finance industry. Impact investors aim to generate measurable positive social and environmental impacts alongside financial returns. This approach has attracted diverse investors, including institutional investors, high-net-worth individuals, and philanthropic foundations.
The demand for impact investments has created a broader ecosystem supporting sustainable finance and channeling capital toward projects addressing pressing societal and environmental challenges. Moreover, international initiatives and collaborations have been crucial in driving the growth of the sustainable finance industry. Global agreements such as the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) have set a clear agenda for sustainable development, mobilizing financial resources and catalyzing action.
In September 2022, Novata and S&P Global Market Intelligence formed a partnership to offer private market investors an integrated data solution that streamlines the collection of financial, environmental, social, and governance data. As part of this collaboration, Novata's ESG data platform will be accessible to S&P Global Market Intelligence customers, enabling them to seamlessly combine ESG data with financial data, thereby providing a comprehensive source of insights. By leveraging this partnership, investors would benefit from a more holistic understanding of both the financial and sustainability performance of companies operating in the private markets.
The COVID-19 pandemic has highlighted the interconnectedness between environmental, social, and economic factors. Investors and companies increasingly realize that sustainable practices can contribute to long-term profitability and resilience. This shift in mindset has encouraged businesses to incorporate sustainability into their strategies, resulting in increased demand for sustainable financing options.
Access Research Report of Sustainable Finance Market @ https://www.grandviewresearch.com/industry-analysis/sustainable-finance-market-report
Sustainable Finance Market Report Highlights
- The equities segment dominated the market in 2022. Equities offer the potential for long-term capital appreciation and returns. Sustainable companies that effectively manage ESG risks and opportunities are expected to outperform their peers in the long run. As investors recognize the financial benefits of sustainability, they are drawn to equities as an asset class that can provide both financial returns and a positive impact
- The ETFs/Index funds segment is expected to grow at a promising CAGR during the forecast period. The growing demand for ETFs/index funds reflects the increasing awareness and interest in sustainable investing. Investors are becoming more conscious of the long-term impact of their investments and seek opportunities that generate both financial returns and positive environmental or social outcomes. The availability of a wide range of sustainable themes and indices within ETFs/Index funds allows investors to tailor their investments to specific sustainability objectives, further driving the expansion of the segment
- The passive segment is anticipated to grow at the fastest CAGR over the forecast period. The growth of passive investing in the sustainable finance industry is propelled by advancements in ESG data and scoring methodologies, enabling robust sustainable indexes. As a result, passive investing plays a crucial role in democratizing sustainable investing, making it accessible to a wider range of investors and contributing to the overall expansion of the market
- The retail investors segment is expected to grow at a significant CAGR in the coming years. The demand for transparency and accountability from companies and investment providers has led to the development of a wide range of sustainable investment options tailored for retail investors, including sustainable mutual funds, exchange-traded funds, and impact investing platforms, fueling the segment's growth
- Europe dominated the market in 2022. Europe boasts a robust ecosystem of sustainable finance organizations, including sustainable banks, asset managers, and rating agencies, that contribute to developing and promoting sustainable finance practices
Sustainable Finance Market Report Scope
Report Attribute | Details |
Market size value in 2023 | USD 623.39 billion |
Revenue forecast in 2030 | USD 2,589.90 billion |
Growth rate | CAGR of 22.6% from 2023 to 2030 |
Base year of estimation | 2022 |
Historical data | 2017 - 2021 |
Forecast period | 2023 - 2030 |
List of Key Players in the Sustainable Finance Market
- BlackRock, Inc.
- State Street Corporation
- Morgan Stanley
- UBS
- JPMorgan Chase & Co.
- Franklin Templeton Investments
- Amundi US
- The Bank of New York Mellon Corporation
- Deutsche Bank AG
- Goldman Sachs
Access Press Release of Sustainable Finance Market @ https://www.grandviewresearch.com/press-release/global-sustainable-finance-market
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