Sustainable Investing: Shaping the future of finance
Summary
Sustainable investing is transitioning from a niche approach to a mainstream financial practice, with global assets under sustainable mandates projected to reach USD 160 trillion by 2036. While adoption is increasing in developed countries, the sector faces challenges regarding capacity at financial institutions and the integration of sustainability into passively managed portfolios. Key future drivers include the centrality of climate risk, the guidance provided by the Sustainable Development Goals (SDGs), and the development of innovative financial instruments.
Key insights
- Global assets managed under sustainable investing mandates are projected to reach USD 160 trillion by 2036, which would represent nearly 100% ESG integration in fund management.
- Despite the growth of sustainable investing, the industry faces obstacles including a lack of internal capacity at financial institutions and difficulties integrating sustainability into passively managed portfolios that track non-ESG indices.
- Future trends in sustainable finance will be shaped by the prioritization of climate risk, the use of Sustainable Development Goals (SDGs) to identify global challenges for investor focus, and the acceleration of innovative financial instruments.
Cite the original document
- APA
- Uzsoki,, D. (2020). Sustainable Investing: Shaping the future of finance. International Institute for Sustainable Development. https://www.iisd.org/publications/report/sustainable-investing-shaping-future-finance
- Chicago
- Uzsoki,, David. Sustainable Investing: Shaping the future of finance. International Institute for Sustainable Development, 2020. https://www.iisd.org/publications/report/sustainable-investing-shaping-future-finance.
- Wikipedia
- {{cite report |last1=Uzsoki, |first1=David |title=Sustainable Investing: Shaping the future of finance |publisher=International Institute for Sustainable Development |date=10 February 2020 |url=https://www.iisd.org/publications/report/sustainable-investing-shaping-future-finance |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{uzsoki2020sustainable, author = {Uzsoki,, David}, title = {{Sustainable Investing: Shaping the future of finance}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = feb, url = {https://www.iisd.org/publications/report/sustainable-investing-shaping-future-finance}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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