A Stanford University study says phasing out fossil fuels and running the entire world on clean energy would cost $73 trillion but could pay for itself in under seven years. However, we argue that a fair share of that funding could come from private ESG (Environmental, Social and Governance) and impact investing. But is that a realistic assumption?

So far, we have only scratched the surface. But we predict that the great democratization of ESG/ impact investing is finally gaining momentum now.

Previously, ESG and impact investing have largely been focused on institutional investors, but 2019 was the year that started to shift. Winning over the retail investors, e.g. High Net-Worth millennials, will fuse a big market breakthrough in 2020.

“If you look at what people are seeking in terms of where they work, what they buy and increasingly what they invest in, they want their dollars to be put to work to have a positive impact on the world and I think there’s going to be a huge opportunity for financial services in that,” says Amit Bouri, chief executive of the Global Impact Investing Network.

Source: Bloomberg.com
Source: Bloomberg.com

Moreover, there was a surge in green and sustainability debt in 2019 and 2018. Companies borrowed $78 billion in green loans in 2019, up from $60.5 billion in 2018. And looking at the whole ESG debt sector – green and social bonds and loans – it has grown to more than $480 billion in 2019.

This year is going to be really interesting. The mega-trend is clear. But will the market growth be sufficient steep to catch-up on the accelerating climate change? You are part of the answer.

DisclaimerMaiyak is a facilitator of investments by independent information. We don’t offer advises or recommendations regarding offered investments. Moreover, Maiyak doesn’t embrace the purchase of any investment products. 


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