[Latest] Global Environmental Social and Governance Investing Market Size, Forecast & Share Surpass US$ 46.5 Trn By 2032 (2024)

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[Latest] Global Environmental Social and Governance Investing Market Size, Forecast & Share Surpass US$ 46.5 Trn By 2032? ›

ESG Investing Market: Overview

The global ESG investing market size is projected to be worth around USD 167.49 trillion by 2034 from USD 29.86 trillion in 2024, at a CAGR of 18.82% from 2024 to 2034. The North America ESG investing market size reached USD 9.30 trillion in 2023.

Vanguard Group

As of 2023, Vanguard manages more than US$8tn in assets, making it one of the largest asset managers globally.

The findings indicate that ESG continues to grow and remain relevant. The performance of ESG funds and exchange-traded funds (ETFs) has matched or surpassed traditional funds/ETFs over most time periods.

ESG assets are set to reach over $40 trillion by 2030 in line with our inaugural BI ESG Market Navigator study, which revealed that investor appetite remains resilient with over 85% of asset managers planning to boost ESG AUM.

The bottom line is that ESG leaders tend to be more profitable and generate above-average returns, providing opportunities for more cash to be returned to shareholders over time. As seen in the performance chart, companies with higher ESG ratings outperformed those with lower ESG ratings.

If companies fail to remain mindful of their ESG risks, it could result in a lack of interest from future investors, losing loyal customers who have grown more aware of societal and environmental issues, and potentially ignoring the requirement to comply with current environmental regulations – which can result in ...

Two main critiques are offered: first, ESG investing violates the obligations of fiduciaries to solely focus on financial benefits for their customers and retirement plan participants, instead favoring social and environmental policy goals of no financial significance.

It refers to a set of metrics used to measure an organization's environmental and social impact and has become increasingly important in investment decision-making over the years. But while the term ESG was first coined in 2004 by the United Nations Global Compact, the concept has been around for much longer.

Is ESG losing steam? ›

The wave of anti-ESG sentiment that fueled a global retreat from the investing strategy is now showing signs of losing steam, according to an executive at the wealth management arm of Deutsche Bank AG.

The new environment for cash investing

LEAF® is part of BlackRock Global Cash Management's effort to incorporate Environmental, Social and Governance (“ESG”) factors into Cash Investing.

The COVID-19 pandemic has reinforced the importance of ESG issues and accelerated the transition to a more inclusive capitalism. Investors increasingly believe companies that perform well on ESG are less risky, better positioned for the long term and better prepared for uncertainty.

According to Custom Market Insights (CMI), The ESG Investing Market size was estimated at USD 17.2 Trillion in 2022 and is expected to hit around USD 46.5 Trillion by 2032, poised to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2032.

ESG Software Market Size & Trends. The global ESG software market size was estimated at USD 940.7 million in 2023 and is expected to grow at a CAGR of 17.3% from 2024 to 2030.

The global Green Technology & Sustainability Market is projected to grow from USD 28.6 billion in 2024 to USD 134.9 billion by 2030, at a CAGR of 29.5% during the forecast period, according to a new report by MarketsandMarkets™.