Sustainable Finance Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 8.5 Trillion |
| Market Size (2029) | USD 22.19 Trillion |
| CAGR (2024 - 2029) | 21.15 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sustainable Finance Market Analysis
The Sustainable Finance Market size is estimated at USD 8.5 trillion in 2024, and is expected to reach USD 22.19 trillion by 2029, growing at a CAGR of 21.15% during the forecast period (2024-2029).
In recent years, sustainable financing has grown significantly. The demand has risen as more and more investors understand the effectiveness of sustainability and ESG elements in their investment plans. Many institutional investors have incorporated ESG criteria into their investment frameworks. They consider environmental and social aspects and corporate governance practices to assess investments' long-term sustainability and risk profile. Green bonds have become a popular instrument in sustainable finance. Socially Responsible Investing (SRI) focuses on investments aligning with ethical or social values. It involves screening companies involved in controversial activities and investing in businesses with a positive social impact. The availability and quality of ESG data have improved, enabling investors to make more informed decisions. Companies increasingly report on their ESG performance and disclose relevant information to meet investor demands.
Sustainable Finance Market Trends
Rise in the Issuance of Green Bonds
Green bonds offer a specialized funding source for initiatives that benefit the environment, like energy efficiency, renewable energy, sustainable infrastructure, and climate change adaptation. The proceeds from green bond issuances are specifically allocated to these projects, enabling investors to support and participate in the transition to a more sustainable economy. The increased issuance of green bonds reflects the growing demand from investors for sustainable investment opportunities. Investors are increasingly seeking investments that align with their ESG principles and contribute to positive environmental outcomes. Green bonds offer a transparent and credible investment option, allowing investors to direct their capital toward environment-friendly projects. Investing in green bonds may add a new asset class to their portfolios and reduce exposure to sectors more vulnerable to climate-related risks or other ESG concerns. Long-term gains from this diversification may be possible in addition to risk management.
Increasing Sustainable Finance Market Value in North America
The value of sustainable bonds issued in the region has been increasing, reflecting the growing demand for sustainable finance. Investors in North America have been increasingly interested in sustainable investments. They understand the importance of including environmental, social, and governance (ESG) considerations in their investment plans. This demand has led to a surge in sustainable bond issuances as companies and governments seek to attract capital from ESG-conscious investors. Governments and regulatory bodies in North America have been supportive of sustainable finance. They have implemented policies and regulations that encourage the issuance of sustainable bonds. In North America, investments in green infrastructure, such as climate resilience programs, sustainable transportation schemes, and renewable energy projects, have gained prominence. Since these initiatives frequently need significant capital outlays, the issue of sustainable bonds has been a crucial source of funding for their advancement.
Sustainable Finance Industry Overview
The sustainable finance market is moderately consolidated with many players in the market. Some major global market players include BlackRock, Vanguard Group, State Street Global Advisors, JPMorgan Chase, and Citigroup. In the study period, market players are also involved in mergers and acquisitions, and partnerships are focused on expanding their market presence. During the forecast period, the market offers growth prospects, which are anticipated to intensify competition. However, mid-size to smaller businesses are expanding their market presence by landing new contracts and breaking into untapped sectors due to product innovation and technological improvement.
Sustainable Finance Market Leaders
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BlackRock
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Vanguard Group
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State Street Global Advisors
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JPMorgan Chase
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Citigroup
*Disclaimer: Major Players sorted in no particular order
Sustainable Finance Market News
- August 2023: Nomura Holdings Inc., a global financial services group, partnered with Angeleno Group LLC for climate solutions.
- June 2023: Lombard Odier Investment Management (LOIM), the asset management unit of Lombard Odier, partnered with system change company Systemiq for investments towards a carbon-free global economy.
Sustainable Finance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise of Corporate Social Responsibility Initiatives
- 4.2.2 Recognition of the Long-term Financial Benefits of Sustainable Investments
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4.3 Market Restraints
- 4.3.1 High Initial Costs Restraining the Market
- 4.3.2 Lack of Standardized Definitions and Metrics for Measuring Sustainability
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4.4 Market Opportunities
- 4.4.1 Sustainable Infrastructure Development Creating an Opportunity
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4.5 Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitutes
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Insights on Technological Innovations in the Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Investment Type
- 5.1.1 Equity
- 5.1.2 Fixed Income
- 5.1.3 Mixed Allocation
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5.2 By Transaction Type
- 5.2.1 Green Bond
- 5.2.2 Social Bond
- 5.2.3 Mixed-sustainability Bond
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5.3 By Industry
- 5.3.1 Utilities
- 5.3.2 Transport and Logistics
- 5.3.3 Chemicals
- 5.3.4 Food and Beverage
- 5.3.5 Government
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Russia
- 5.4.2.5 Spain
- 5.4.2.6 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 India
- 5.4.3.2 China
- 5.4.3.3 Japan
- 5.4.3.4 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East
- 5.4.5.1 United Arab Emirates
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Rest of Middle East
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
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6.2 Company Profiles
- 6.2.1 BlackRock
- 6.2.2 Vanguard Group
- 6.2.3 State Street Global Advisors
- 6.2.4 JPMorgan Chase
- 6.2.5 Citigroup
- 6.2.6 Goldman Sachs
- 6.2.7 UBS
- 6.2.8 Bank of America
- 6.2.9 Amundi
- 6.2.10 Allianz*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablitySustainable Finance Industry Segmentation
Sustainable finance compiles financial regulations, strategies, methodologies, and products designed to uphold environmental objectives. By funding its agents and pursuing a growth purpose, it makes it possible for the financial system to interact with the population and the economy. This report aims to provide a detailed analysis of the sustainable finance market. It focuses on insights into the many product and application types, market dynamics, and emerging trends in the segments and regional markets. It examines the competitive environment and the major players. The sustainable finance market is segmented by investment type, which includes equity, fixed income, and mixed allocation; by transaction type, including green bond, social bond, and mixed-sustainability bond; by industry, including utilities, transport and logistics, chemicals, food and beverage, and government; and by geography including North America, Europe, Asia-Pacific, South America, and the Middle East. The report offers the market size for the sustainable finance market in value terms in USD for all the abovementioned segments.
| By Investment Type | Equity | |
| Fixed Income | ||
| Mixed Allocation | ||
| By Transaction Type | Green Bond | |
| Social Bond | ||
| Mixed-sustainability Bond | ||
| By Industry | Utilities | |
| Transport and Logistics | ||
| Chemicals | ||
| Food and Beverage | ||
| Government | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East |
Sustainable Finance Market Research FAQs
How big is the Sustainable Finance Market?
The Sustainable Finance Market size is expected to reach USD 8.5 trillion in 2024 and grow at a CAGR of 21.15% to reach USD 22.19 trillion by 2029.
What is the current Sustainable Finance Market size?
In 2024, the Sustainable Finance Market size is expected to reach USD 8.5 trillion.
Who are the key players in Sustainable Finance Market?
BlackRock, Vanguard Group, State Street Global Advisors, JPMorgan Chase and Citigroup are the major companies operating in the Sustainable Finance Market.
Which is the fastest growing region in Sustainable Finance Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Sustainable Finance Market?
In 2024, the Asia Pacific accounts for the largest market share in Sustainable Finance Market.
What years does this Sustainable Finance Market cover, and what was the market size in 2023?
In 2023, the Sustainable Finance Market size was estimated at USD 6.70 trillion. The report covers the Sustainable Finance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Sustainable Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sustainable Finance Industry Report
Statistics for the 2024 Sustainable Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sustainable Finance analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
