Environmental Social and Governance (ESG) Investing Market Growth, Size, Share, Demand, Trends and Forecasts to 2032 (2024)

The global Environmental Social and Governance ESG Investing Market size is expected to record a CAGR of 9.4% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 17.2 Trillion. By 2032, the valuation is anticipated to reach USD 46.5 Trillion.

Environmental Social and Governance ESG Investing Market: Growth Factors and Dynamics

• Rising Awareness and Demand: Increasing awareness about environmental and social issues, coupled with growing investor interest in sustainable and responsible investments, is driving the growth of the ESG investing market.

• Regulatory Support and Incentives: Governments and regulatory bodies worldwide are providing incentives and favorable policies to encourage ESG investing, creating a conducive environment for sustainable finance initiatives.

• Corporate Sustainability Initiatives: As companies prioritize sustainable practices and social responsibility, investors are recognizing the long-term value of businesses with robust ESG frameworks, fostering greater interest in ESG investments.

• Financial Performance Considerations: Studies indicating that ESG-focused companies can outperform their peers financially over the long term are attracting investors seeking both positive impact and attractive returns.

• Integration of ESG Metrics: Mainstream adoption of ESG integration into investment decision-making processes by asset managers and institutional investors is further propelling the growth of the ESG investing market.

• Engagement and Shareholder Activism: Shareholders and stakeholders are increasingly engaging with companies to address ESG concerns, pushing corporations to adopt sustainable practices and enhancing the significance of ESG factors in investment strategies.

• Impact of Global Challenges: The growing awareness of global challenges, such as climate change, social inequality, and governance issues, has elevated the importance of ESG considerations as investors seek to address these pressing issues through their investment choices.

• Institutional Support and Integration: ESG investing has gained traction in institutional portfolios, with pension funds, sovereign wealth funds, and other large investors incorporating ESG criteria into their investment policies, leading to a broader acceptance and mainstreaming of sustainable investing practices.

Environmental Social and Governance ESG Investing Market:

• BlackRock’s Acquisition of Aperio: In 2021, BlackRock the world’s largest asset manager, acquired Aperio, a California-based provider of customized index equity solutions. The acquisition aimed to enhance BlackRock’s capabilities in sustainable and responsible investing, enabling the company to offer personalized ESG solutions to its clients. The integration of Aperio’s expertise strengthened BlackRock’s position in the ESG investing market and further expanded its range of sustainable investment offerings.

• KKR’s Acquisition of ESG-focused Firms (Various): KKR, a leading global investment firm, made multiple acquisitions of ESG-focused companies between 2018 and 2021. These acquisitions aimed to enhance KKR’s ESG integration and sustainable investment expertise across its portfolio companies.

List of the prominent players in the Environmental Social and Governance ESG Investing Market:

• BlackRock Inc.
• State Street Global Advisors (SSGA)
• Vanguard Group Inc.
• UBS Group AG
• Robeco Institutional Asset Management B.V.
• BNP Paribas Asset Management
• Calvert Research and Management
• Amundi Asset Management
• Nuveen LLC
• PIMCO (Pacific Investment Management Company LLC)
• Others

The Environmental Social and Governance ESG Investing Market is segmented as follows:

By Type

• ESG Integration
• Impact Investing
• Sustainable Funds
• Green Bonds
• Others

By Application

• Environmental
• Social
• Governance
• Sustainable Development Goals (SDGs)