Global investments compliant with environmental, social and governance (ESG) principles may exceed $53 trillion by 2025, making up about one-third of the world’s total assets under management, said the head of Moscow-based asset management boutique Matrix Capital.
ESG-compliant debt markets may show an even more impressive growth with the total value of the world’s ESG-focused debt instruments projected to swell to $11 trillion for 2021 from last year’s $2.2 trillion, general partner Pavel Teplukhin told a news conference in Moscow.
Teplukhin said this increase would be driven by larger corporate debt issues, by governmental debt issues to finance development projects, and by state stimulatory measures.
According to Reuters and other media, in the second quarter of 2021 the combined assets of the world’s ESG-focused funds reached $2.3 trillion. This marked their fifth consecutive quarter of growth and an increase of 12 per cent from the end of March, Reuters said.