The rise of the sustainable fund market and its role in financing sustainable development

Sustainable funds – mutual funds and exchange-traded funds (ETFs) that integrate sustainable development-related considerations in their asset allocation process – have been growing rapidly in recently years. This market has the potential to contribute to sustainable development through investments in sectors relevant to the attainment of the Sustainable Development Goals (SDGs), including in developing countries. This paper aims to analyse the latest developments in the global sustainable fund market, asses its sustainability performance and its alignment with the SDGs, and discuss the challenges and opportunities for the further expansion of this market.