Market Size of ESG Finance Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 7.02 Trillion |
| Market Size (2029) | USD 11.33 Trillion |
| CAGR (2024 - 2029) | 10.04 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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ESG Finance Market Analysis
The ESG Finance Market size is estimated at USD 7.02 trillion in 2024, and is expected to reach USD 11.33 trillion by 2029, growing at a CAGR of 10.04% during the forecast period (2024-2029).
Investment in sustainable firms is rising due to the increasing demand for financial professionals specializing in sustainable finance. Not only does sustainable finance reduce risk exposure and improve returns, but it also reduces costs and mitigates risk. However, market growth is limited by challenging diversification challenges and high operating expenses. Despite this, the market for sustainable finance has a lot of potential for profitability as industries become more conscious of the environment.
The ESG finance market is growing due to an increase in investment in sustainable businesses. Investors increasingly know the need to tackle environmental and social issues and are looking for sustainable investment opportunities.
The market is expected to grow as people become more aware and concerned about the environment and social problems, including climate change, depletion of resources, and social injustice. This increased awareness has led to an increase in the need for sustainable financial solutions as people, companies, and institutions want to make sure their investments are in line with their beliefs and help make the world a better place. Regulatory frameworks and government policies also play an important role in the market's growth.
Sustainable finance comes in many forms. Institutional investors and funds are now embracing a variety of ESG investing strategies. This shift has been driven by changes in demand across the financial system, driven by both a desire for better long-term financial value and a desire to align with values. For instance, one of the most notable developments in ESG finance in the current year is the phenomenal growth of green issuance, compared to significant declines in issuance in the United States and Asia.
