Sustainable Finance Market Report 2026

The sustainable finance market size has grown exponentially in recent years. It will grow from $8.24 trillion in 2025 to $10.11 trillion in 2026 at a compound annual growth rate (CAGR) of 22.7%. The growth in the historic period can be attributed to expansion of responsible investment principles, increasing institutional investor participation, development of sustainability reporting standards, growth of green bond markets, rising awareness of climate risks.

The sustainable finance market size is expected to see exponential growth in the next few years. It will grow to $21.81 trillion in 2030 at a compound annual growth rate (CAGR) of 21.2%. The growth in the forecast period can be attributed to increasing alignment with net-zero commitments, rising demand for climate-linked financial products, expansion of sustainable infrastructure financing, growing integration of ai-driven esg analytics, increasing regulatory enforcement on sustainability disclosures. Major trends in the forecast period include growing adoption of esg-integrated investment strategies, rising issuance of green and sustainability bonds, expansion of impact investing platforms, increasing use of esg data analytics, enhanced regulatory focus on sustainable disclosure.

The increasing emphasis on corporate social responsibility (CSR) initiatives is expected to drive the growth of the sustainable finance market in the coming years. CSR refers to a business model in which companies aim to create positive social and environmental impact, alongside benefiting stakeholders, beyond simply maximizing profits. The growth of CSR initiatives is driven by factors such as ethical responsibility, reputation and brand image, employee engagement and retention, risk management, and consumer expectations. By aligning financial practices with ethical, environmental, and social goals, CSR initiatives enhance corporate reputation, attract investment, and foster the development of innovative financial products, contributing to a more sustainable and resilient global economy. For example, in November 2024, Benevity Inc., a Canada-based global CSR solutions provider, reported that in 2023, employee engagement in volunteering and giving programs in the UK increased to 14%, marking a 25% growth from the previous year - surpassing the global increase of 23%. Through Benevity’s platform, UK employees contributed $0.0394 billion (£31 million), supporting nearly 13,000 nonprofit organizations. As a result, the rise of CSR initiatives is fueling the growth of the sustainable finance market.

Major corporations in the sustainable finance sector prioritize leveraging sustainable finance innovation to enhance their competitive edge. This innovation involves developing and deploying novel financial products, services, and strategies that integrate environmental, social, and governance (ESG) criteria to advance sustainable development goals. For instance, in April 2024, Ernst & Young Global Limited, a UK-based transaction services firm, inaugurated a new Sustainable Finance Innovation Hub in Dublin. This initiative assists global financial institutions in accelerating their compliance with ESG regulations and reporting requirements, offering specialized advisory services and expertise to navigate the evolving landscape of sustainable finance.

In August 2023, Environmental Resources Management (ERM), a UK-based consultancy, acquired NINT to bolster its capabilities in sustainable finance and ESG consultancy, particularly in the Latin American market. NINT, a US-based consultancy specializing in sustainable finance services, was acquired for an undisclosed sum.

Major companies operating in the sustainable finance market are AXA Group, Bank of America Corporation, Citigroup Inc., The Hongkong and Shanghai Banking Corporation, BNP Paribas, Morgan Stanley Dean Witter Discover & Co., Internationale Nederlanden Group, Mitsubishi UFJ Financial Group, UBS Group AG, Goldman Sachs Group Inc., Barclays plc, Sumitomo Mitsui Financial Group Inc., Aviva plc, Credit Suisse Group AG, BlackRock Inc., Standard Chartered plc, Nomura Holdings Inc., Natixis SA, Northern Trust Corporation, Amundi SA, Macquarie Group Limited, Legal & General Group plc, State Street Global Advisors, Robeco.

North America was the largest region in the sustainable finance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable finance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sustainable finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sustainable finance market includes revenues earned by entities by providing services such as sustainable loans, environmental, social, and governance (ESG) integration, sustainable investment funds, and advisory services and related social impact bonds (SIBs), green mortgages, and carbon offsets and credits. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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