Perfect storm’ will accelerate ESG assets to top $53trn by 2025
https://esgclarity.com/perfect-storm-will-accelerate-esg-assets-to-top-53trn-by-2025/

The organisation’s Global ESG 2021 Outlook, exclusively seen by ESG Clarity, forecast ESG assets could become a third of the projected $140.5trn expected to be held in assets by 2025, with 2021 poised to be a “pivotal” year with ESG reframing markets.

The momentum seen in 2020 – with Bloomberg recording a threefold increase in the number of companies setting net-zero targets and more than 330 new ESG funds launched by the third quarter – will continue to accelerate into this year, writes Bloomberg Intelligence head of ESG and thematic investing EMEA Adeline Diab, leading to increasing regulatory and shareholder oversight.

“More than $3trn in fiscal stimuli globally will be dedicated to financing a green recovery to spur consumer spending, corporate funding, and in turn, employment. ESG assets may top $53trn by 2025 as ETFs and debt expand, though underperformance may persist for the US next year,” the note said.

“Global ESG assets are on track to exceed $53trn by 2025, representing more than a third of the $140.5trn in projected total assets under management. A perfect storm created by the pandemic and the green recovery in the US, EU and China will likely reveal how ESG can help assess a new set of financial risks and harness capital markets.”