ESG investing market forecast to be worth nearly $187t by 2035

Asia Pacific contributes as the fastest-growing region for ESG investing, says report.

The size of the global ESG (environmental, social, governance) investing market is set to reach US$186.93t by 2035, according to market research firm SNS Insider.  

The projected market growth from 2025's $37.82t represents a 17.31% compound annual growth rate (CAGR), thanks to the "mainstreaming" of ESG investing.

SNS Insider noted: "The mainstreaming of ESG investing is being driven by a convergence of normative investor preferences, mounting analytical evidence that material ESG risks translate directly into financial outcomes, and a rapidly expanding regulatory backdrop."

The market research company pointed out that new regulations' disclosure requirements are generating the consistency and volume of comparable ESG data that institutional investment models need.

"The most important structuring factor in the ESG investing market is the increasing presence of mandatory sustainability disclosure and reporting regulations which are turning ESG into an obligation and not a voluntary measure and affecting an increasing number of companies around the world," SNS Insider said.

In terms of regional contributions, approximately 38% of ESG investments in 2025 came from North America, whilst Asia Pacific was highlighted for being the fastest-growing market. The region's CAGR is forecast to exceed 19% over the 10-year forecast period.

Application-wise, the environmental segment made up the biggest share in ESG investing globally in 2025. ESG integration was the most dominant investment classification, whilst institutional investors led the pack in terms of investor type.

SNS Insider listed BlackRock, Vanguard Group, State Street Global Advisors, Fidelity Investments, J.P. Morgan Asset Management, Goldman Sachs Asset Management, BNP Paribas Asset Management, Amundi S.A., UBS Asset Management, Schroders, Pimco (Pacific Investment Management Company), and Calvert Research and Management as some of the key players.

It also cited Nuveen Investments (TIAA), Robeco Institutional Asset Management, Dimensional Fund Advisors, Northern Trust Asset Management, Wellington Management Group, Legg Mason (Franklin Templeton), PGIM (Prudential Financial), and DWS Group GmbH & Co. KGaA.

In the US, the ESG investing market is estimated to grow from $14.37t in 2025 to $71.03t by 2035 even amidst anti-ESG legislative activity.