ESG Finance Market Report 2026

The esg finance market size has grown rapidly in recent years. It will grow from $7.02 trillion in 2025 to $7.81 trillion in 2026 at a compound annual growth rate (CAGR) of 11.2%. The growth in the historic period can be attributed to increasing awareness of sustainability risks, growth of responsible investment mandates, expansion of institutional investor participation, early adoption of esg screening frameworks, rising stakeholder pressure for transparency.

The esg finance market size is expected to see rapid growth in the next few years. It will grow to $11.87 trillion in 2030 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to increasing regulatory enforcement of esg standards, growing demand for climate-aligned investments, expansion of sustainable finance products, rising integration of ai in esg analysis, increasing capital flows into impact investing. Major trends in the forecast period include increasing integration of esg metrics in investment decisions, rising demand for esg data and analytics platforms, growing issuance of green and social bonds, expansion of regulatory esg disclosure requirements, enhanced focus on impact measurement.

The rising investment in green bonds is anticipated to drive the growth of the ESG finance market. Green bonds are fixed-income securities issued to raise capital specifically for financing environmentally sustainable projects and initiatives. The surge in green bond investments is attributed to increasing global awareness of climate change and a growing demand for socially responsible investments. Institutional investors, such as pension funds and insurance companies, are increasingly focusing on investments that meet environmental, social, and governance (ESG) criteria. ESG insurance provides coverage and risk mitigation for sustainable projects, boosting investor confidence and supporting the financing of green initiatives. For example, in May 2024, The International Finance Corporation, a US-based international financial institution, projected that green bond issuance would grow at an annual rate of 7.5%, reaching $156 billion by 2025, up from $135 billion in 2023. This rise in green bond investments is expected to propel the growth of the ESG finance market.

Major companies operating in the ESG finance market are concentrating on utilizing advanced technologies such as integrated scoring and compliance functionalities to boost sustainable investment prospects and enhance corporate transparency. Integrated scoring and compliance functionalities are tools within ESG platforms that automatically assess companies’ environmental, social, and governance performance against established benchmarks and monitor regulatory adherence, assisting investors and organizations in making informed decisions, identifying risks, and ensuring compliance with ESG standards. For example, in September 2023, Euronext N.V., a Netherlands-based stock exchange operator, introduced a suite of ESG solutions. These platforms combine ESG scoring, compliance monitoring, and reporting capabilities, delivering improved data accuracy, accessibility, and actionable insights for investors and issuers. The solutions cater to various applications, including ESG bond issuance, investment portfolio optimization, and corporate sustainability benchmarking, while promoting transparency and advancing sustainable finance initiatives across Europe.

In September 2025, Lombard Odier Investment Managers SA (LOIM), a Switzerland-based provider of wealth and asset management services, acquired Ownership Capital B.V. for an undisclosed amount. Through this acquisition, LOIM seeks to broaden its sustainable investment offerings and strengthen its expertise in long-term, sustainability-focused equity strategies. Ownership Capital B.V. is a Netherlands-based sustainable investment management firm, specializing in long-term portfolio management for pension funds, foundations, and endowments, with an emphasis on material sustainability factors and active ownership engagement.

Major companies operating in the esg finance market are JPMorgan Chase & Co., HSBC Holdings plc, Morgan Stanley, BNP Paribas Asset Management S.A., The Goldman Sachs Group Inc., UBS Group AG, Deutsche Bank AG, Fidelity Investments Inc., The Bank of New York Mellon Corporation, BlackRock Inc., State Street Corporation, The Vanguard Group Inc., Franklin Templeton Holdings Ltd., Northern Trust Asset Management, T. Rowe Price Group Inc., Amundi Asset Management Inc., Invesco Ltd., Schroders plc, Pacific Investment Management Company LLC, Allianz Global Investors GmbH, Columbia Threadneedle Investments Inc., AXA Investment Managers S.A., Wellington Management Company LLP, Natixis Investment Managers International, Legal & General Investment Management Limited.

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

The ESG finance market includes revenues earned by entities through services such as sustainable investment advisory services, corporate sustainability reporting services, and ESG education and training. 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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