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Investing in the ESG... The E is getting Big

As ESG investing moves from stated boardroom objectives to meaningful action, the investment dollars are following. Companies around the world are planning and spending large capital in the petrochemical and industrial space. According to Bloomberg:

"The $2.2 trillion ESG debt market could swell to $11 trillion by 2025, assuming it expands at half the pace of the past five years. Green, social and sustainability bonds are poised to surpass $2 trillion in cumulative volume by the end of 2020, a milestone reached with this year’s meteoric rise of social bonds."  

ESG is not a fad, and directors of companies will be held accountable by their investors on some form of ESG scoring. CFOs will be adding another metric to their financial statements along with the need to include ESG as an essential capital allocation criteria when making investment decisions.  

ESG assets under management could climb to more than a third of the projected $140.5 trillion global total by 2025.

Tags

finance, esg, corporate governance

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