Dublin, Oct. 04, 2024 (GLOBE NEWSWIRE) -- The "Sustainable Finance Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
The sustainable finance market has experienced significant expansion and is expected to continue on an upwards trajectory, with forecasts estimating its growth from $5.48 trillion in the previous year to $6.71 trillion by the end of 2024. This represents a robust compound annual growth rate (CAGR) of 22.4%. A concerted increase in investor demand, along with a focus on risk management, corporate social responsibility, regulatory support, and the rise of investments in renewable energy, have been key factors propelling historical growth during this period.
Future Outlook: Sustainable Finance Market to Soar to $15.31 Trillion by 2028
The market is poised for continued exponential growth, set to reach an impressive $15.31 trillion in 2028, advancing at a CAGR of 22.9%. Forward momentum is expected to be catalyzed by increasing initiatives to minimize the global carbon footprint, a surge in demand for sustainable investment opportunities, and heightened awareness of sustainability across myriad sectors. Additionally, the proliferation of green bonds and sustainable financial products and services will contribute significantly to this expansion. Technological advancements, integration of green technologies, and financing for climate resilience efforts will be prevalent trends during this forecast period.
Impact of Corporate Social Responsibility
The corporate sector's growing emphasis on social responsibility is poised to play a pivotal role in the sustainable finance market's growth. Businesses are proactively aiming to generate positive societal and environmental impacts as an extension of their operations. This focus on Corporate Social Responsibility (CSR), motivated by ethical imperatives and reputational benefits, is leading to enhanced stakeholder engagement and new opportunities in innovative financial products. CSR initiatives align financial practices with broad ethical, environmental, and social goals, ultimately nurturing a more sustainable and robust global economy.
Innovation at the Forefront of Sustainable Finance
Corporations within the sustainable finance arena continue to stay at the cutting edge by championing innovation. By developing financial products, services, and strategies that adhere to environmental, social, and governance (ESG) criteria, these firms are making strides toward realizing sustainable development goals. One notable advancement has been the launch of the Sustainable Finance Innovation Hub by a leading UK-based transaction services firm, designed to support global financial institutions in adapting to ESG regulations and reporting requirements.
Mergers and Acquisitions: Fostering Growth and Capability
In a strategic effort to enhance their capabilities and reach, major consultancies in the UK have made significant acquisitions. As an example, a UK-based consultancy firm specializing in sustainable finance and ESG consultancy recently acquired a US-based company, thereby expanding its foothold in the Latin American market. These tactical business decisions underscore the sector's commitment to bolstering expertise and expanding industry impact.
Geographic and Sector-Wide Insights
North America maintained its position as the dominant region in the sustainable finance market in 2023. Meanwhile, Asia-Pacific is projected to emerge as the fastest-growing region throughout the forecast period. Sustainable finance continues to integrate ESG criteria into diversified financial decision-making processes, encompassing investment strategies and lending practices tailored towards augmenting economic growth while mitigating environmental impacts and promoting good governance.
As the sustainable finance market presses forward, it encompasses a variety of investor types, industry sectors, and financial instruments that collectively drive progress towards global economic sustainability. The commitment from leading global financial institutions to advancements in sustainable finance signals an ever-evolving industry, one that balances profitability with wider social and environmental objectives.
About the Sustainable Finance Market
The sustainable finance market includes revenue generation through innovative and ethical financial services, including sustainable loans, ESG integration, and advisory services for a wide range of financial instruments. This market's growth is reflective of a broader commitment across industries and sectors to foster a sustainable economy that benefits society as a whole.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 175 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $6718.2 Billion |
| Forecasted Market Value (USD) by 2028 | $15313.29 Billion |
| Compound Annual Growth Rate | 22.9% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/nkts7w
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