Sustainable Finance Market Report 2025

This Sustainable Finance market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The sustainable finance market size has grown exponentially in recent years. It will grow from $6.71 trillion in 2024 to $8.27 trillion in 2025 at a compound annual growth rate (CAGR) of 23.1%. The growth in the historic period can be attributed to a rise in investor demand and risk management, the rise of corporate social responsibility initiatives, increasing regulatory support, a rising focus on sustainable supply chains, and rising investments in renewable energy.

The sustainable finance market size is expected to see exponential growth in the next few years. It will grow to $18.79 trillion in 2029 at a compound annual growth rate (CAGR) of 22.8%. The growth in the forecast period can be attributed to a rising focus on reducing carbon footprint, growing demand for sustainable investments, growing awareness of sustainability among various sectors, growing demand for financial instruments and services, and increasing access to green bonds. Major trends in the forecast period include technological advancements, integration of artificial intelligence, green technology adoption, climate resilience financing, and sustainability-linked loans.

The growing focus on corporate social responsibility (CSR) initiatives is expected to drive the expansion of the sustainable finance market in the future. CSR refers to a business approach where companies aim to create a positive impact on society, the environment, and their stakeholders, going beyond profit maximization. The increase in CSR initiatives is driven by factors such as ethical responsibility, improving brand reputation, employee engagement and retention, risk management, and meeting consumer expectations. By aligning financial practices with ethical, environmental, and social objectives, CSR initiatives enhance a company’s reputation, attract investment, and foster the development of innovative financial products, contributing to a more sustainable and resilient global economy. For example, in April 2022, a survey conducted by the International Business Machines Corporation (IBM), a US-based technology company, found that 51% of 16,000 global consumers considered environmental sustainability more important than it was a year prior. 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 2024. 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, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Sustainable finance involves integrating environmental, social, and governance (ESG) criteria into financial decision-making, investment strategies, and lending practices. Its goal is to foster economic growth while mitigating environmental impact, addressing societal issues, and promoting effective governance. Sustainable finance aims to align financial systems with sustainable development objectives, ensuring that financial investments contribute to sustainable economic progress and the welfare of society and the environment.

The primary investment categories within sustainable finance include equity, fixed income, mixed allocation, and others. Equity represents a company's net assets owned by shareholders after deducting liabilities. It plays a crucial role in advancing the shift toward sustainable finance and a more sustainable economy. Various financial instruments include green bonds, social bonds, mixed-sustainability bonds, ESG-integrated investment funds, and others. Investor types span institutional investors and retail investors, while industry sectors encompass utilities, transport and logistics, chemicals, food and beverage, government, among others.

The sustainable finance market research report is one of a series of new reports that provides sustainable finance market statistics, including sustainable finance industry global market size, regional shares, competitors with a sustainable finance market share, detailed sustainable finance market segments, market trends, and opportunities, and any further data you may need to thrive in the sustainable finance industry. This sustainable finance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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