The world of finance is witnessing a seismic shift towards sustainability, with Environmental, Social, and Governance (ESG) investments at the forefront of this transformation. A groundbreaking analysis by PwC forecasts an astonishing 84% increase in ESG-focused institutional investments, rocketing to a mammoth $33.9 trillion by 2026, and capturing 21.5% of global assets under management (AUM).
This growth, marked by a compound annual growth rate (CAGR) of 12.9%, signifies a monumental shift in the asset and wealth management industry, underscoring the rising prominence of ESG factors in investment decisions. The momentum behind ESG investing is undeniable. A study cited by the ESG Investing Institute reveals a compound annual growth rate (CAGR) of over 25% through 2020.
