PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1536053
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1536053
Sustainable finance market size is anticipated to grow at over 22% CAGR between 2024 and 2032 driven by increasing awareness and demand for environmentally and socially responsible investment practices. As investors are becoming more conscious of the impacts of their financial decisions on climate change, social equity, and corporate governance, there is growing shift towards investments that align with sustainability criteria. For instance, in July 2024, Deutsche Bank introduced BASFs inaugural sustainability-linked payables finance program in Asia, specifically for its operations in China for adhering to global standards while customizing to meet the local business needs.
Companies are also increasingly recognizing that sustainable practices can lead to long-term financial benefits, including risk mitigation, improved operational efficiency, and enhanced brand reputation. This corporate shift is driving the demand for sustainable financial products and services that support sustainable development goals and align with corporate social responsibility (CSR) objectives.
The overall industry is segmented into investment type, transaction type, investor type, end use, and region.
Based on investment, the sustainable finance market size from the equity segment is poised to grow between 2024 and 2032 favored by the need for offering investors multiple opportunities to participate in companies that prioritize environmental, social, and governance (ESG) factors. As equity investors are increasingly seeking to align their portfolios with sustainability goals, there is rising demand for stocks and funds that meet the ESG criteria.
Sustainable finance market from the transport & logistics end use segment is set to witness significant CAGR from 2024 to 2032 owing to the significant investments into eco-friendly and efficient transportation solutions. As the sector transport & logistics faces increasing pressure to reduce its carbon footprint and improve environmental performance, companies are turning to sustainable finance options to fund initiatives, such as the development of electric and hybrid vehicles, the optimization of supply chains, and the implementation of green infrastructure.
Asia Pacific sustainable finance industry is expected to accrue notable growth from 2024 to 2032 attributed to rapid urbanization and the urgent need to address environmental challenges, such as air pollution and climate change. Governments and financial institutions in the region are increasingly implementing policies and incentives to support green investments and sustainable infrastructure projects, further stimulating the regional market growth.