A new ESG report from Bloomberg Intelligence shows that global ESG assets surpassed $30 trillion in 2022 and are on track to surpass $40 trillion by 2030.
The forecast suggests that by 2030, 25% of the $140 trillion AUM globally will be ESG assets. BI says that ESG AUM will continue to be supported by enhanced scrutiny and regulations that will add to the market’s credibility. BI’s forecasts that Europe is set to remain the largest in ESG assets with over $18 trillion in 2030.
Adeline Diab, Global ESG Research and Strategy Director at Bloomberg Intelligence, said, “While ESG has had a challenging few years, we see the market entering a necessary consolidation phase, characterized by slower growth and gaining maturity. ESG assets are set to reach over $40 trillion by 2030 in line with our inaugural BI ESG Market Navigator study, which revealed that investor appetite remains resilient with over 85% of asset managers planning to boost ESG AUM. Greater regulatory harmonization in and across regions will also be essential to bolster credibility and sustain advances in ESG funds.
“BI’s 3.5% growth forecast is 70% below 2016-20’s rate as we expect the market to mature and gain credibility with rising scrutiny and regulation. This is following a previous surge which also led to greenwashing risk and inconsistent ESG approaches.”