Demand Signals for Sustainable Finance in the Next Decade

This technical report outlines ten demand signals that are expected to shape the landscape of sustainable finance over the next decade. It begins by discussing the increasing demand for new sustainable investment options, particularly among younger generations, and highlights the anticipated growth in sustainable assets under management (AUM). The report notes that sustainable AUM is projected to double if it reaches 15% of total AUM outside Europe. It further details the shift in focus towards private markets, driven by regulatory scrutiny and client demand for transparency. The report emphasizes the importance of accurate and reliable ESG data, which is critical for supporting sustainability claims and informing investment decisions. It also discusses the impact of new regulations, such as the EU’s Corporate Sustainability Reporting Directive, which will require extensive ESG disclosures from numerous companies. Overall, the report presents a comprehensive view of the evolving dynamics in sustainable finance and the factors influencing investor behavior and market trends.