The Association for Financial Markets in Europe (AFME) has published its European ESG Finance data report for Q3 2024.

The report provides data and analysis on the sustainable finance market in Europe. Key findings include:

The quarter saw record-high global ESG AUM driven by strong fund inflows. Global funds with an ESG mandate reached $10.5tn as of Q3 2024, representing a 8.7% increase from Q2 2024 and a 18.2% increase from Q3 2023.

ESG bond and loan issuance in Q3’24 surpassed 2023 but remains below 2021-2022 levels. ESG bond and loan issuance totalled €116bn, a 6% increase from Q3 2023 (YoY) and a 27% decrease from Q2 2024 (QoQ).

The share of ESG bonds in total bond issuance in Europe has plateaued, or even decreased since 2021. ESG bond issuance, including ESG-labelled, sustainability-linked and transition bonds, represented 14% of total European bond issuance during 2024 YtD, a lower proportion from 14.2% in 2023 and 18% in 2022. On a year-to-date basis, European green bonds reached the highest H1 issued amount on records. However, relative to the total European bond issued amount, its proportion has continued at c10% since 2021.

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