According to UNCTAD, sustainability-focused financial products targeting sustainable development-related sectors or themes reached over $5.2 trillion in 2021, up 63% from 2020. Sustainable funds, green and social bonds have become crucial investment vehicles that channel much-needed funding into infrastructure, health, education, climate change mitigation, and adaptation.
Nevertheless, sustainable investment is still in its early stages. Sustainable funds and bonds represent only 3% and 1% of global funds and bonds assets, respectively. Developing economies remain so far underserved by the sustainable finance market, with a negligible market share in sustainable investment. Meanwhile, a lack of industry standards and transparency has given rise to ESG/SDG washing concerns.