The ESG market could surpass $40 trillion by 2030, based on our scenario analysis, anchoring the $140 trillion of projected assets under management (AUM) globally despite 70% slower growth and polarized sentiment. Scrutiny is critical as regulators tackle greenwashing, boosting market maturity and credibility but limiting product creation. Europe is set to remain the most significant contributor, while the US may stagnate amid the election and ESG backlash. Emerging themes and small yet expanding markets like Japan could support gains.
Our projections are based on BI’s ESG asset forecast model, which combines regional growth decomposition, historical trends and economic expectations, leveraging data from the Global Sustainable Investment Alliance’s (GSIA) 2022 report, where a methodology change halved US ESG AUM.
i(x) Net Zero plc (LON:IX) is an investing company which focusses on Energy Transition and Sustainability in the Built Environment, and was founded in 2015 by Trevor Neilson, Pär Lindström and Howard W. Buffett.