In ESG investing, decisions are made based on a company’s contribution to societal development:
- Responsible environmental practices
- High social responsibility
- Quality corporate governance
According to Bloomberg estimates, the global ESG market is projected to exceed $40 trillion in assets by 2030.
Over the past five years, the total cumulative volume of ESG bonds has grown nearly sevenfold to $4.3 trillion. Environmental Finance reports that the issuance of such bonds increased by 6% last year, reaching $984 billion (up from $930 billion in 2022).
In 2023, there was a record growth in sustainable bond issuance of 45%, or $209 billion. Green bonds accounted for 58% of sustainable bond issuances, totaling $575 billion. In 2023, governments issued $190 billion worth of green bonds. Green bonds are expected to continue dominating the sustainable finance markets.
