3 min read · Apr 9, 2024
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The world of finance is witnessing a seismic shift towards sustainability, with Environmental, Social, and Governance (ESG) investments at the forefront of this transformation. A groundbreaking analysis by PwC forecasts an astonishing 84% increase in ESG-focused institutional investments, rocketing to a mammoth $33.9 trillion by 2026, and capturing 21.5% of global assets under management (AUM). This growth, marked by a compound annual growth rate (CAGR) of 12.9%, signifies a monumental shift in the asset and wealth management industry, underscoring the rising prominence of ESG factors in investment decisions.
The momentum behind ESG investing is undeniable. A study cited by the ESG Investing Institute reveals a compound annual growth rate (CAGR) of over 25% through 2020, spotlighting the burgeoning opportunity for CEOs and Directors to align with this trend for corporate success. This surge in interest is primarily driven by investors’ desire to align their portfolios with their ethical values, alongside mounting evidence suggesting that ESG investments often yield superior financial performance.
Furthermore, Morgan Stanley’s study illuminates the rapid expansion of the global ESG market, anticipated to balloon from $2 trillion in assets under management today to a staggering $6 trillion by 2025. This growth…
