Sustainability - statistics & facts
Since the Industrial Revolution began, human development has mainly come at the expense of the environment. Rising temperatures, extreme weather events, and supply chain disruptions are only some of the challenges arising from the overexploitation of natural resources. To counter these threats, many are pinning their hopes on sustainable solutions – human processes and actions to avoid natural resource depletion and maintain ecological balance without hindering the quality of life.
To aid in long-term investments in sustainable projects and support the shift to a low-carbon economy, various financial instruments have been introduced in recent years. One such instrument is green bonds, which fund climate and environmental projects. In 2023, green bonds issued worldwide amounted to roughly 600 billion U.S. dollars, a 16-fold increase in comparison to a decade earlier. Green bonds are part of a larger category of sustainable investing, also known as environmental, social, and governance (ESG) investing. In contrast to green bonds, ESG funds include a much wider range of projects, from affordable housing and improved infrastructure projects, to improving working conditions and gender equality. Returns on sustainable funds have regularly outperformed traditional funds in the past five years.
Putting sustainability into practice
Climate change is undoubtedly the largest crisis faced by humankind. As such, the replacement of fossil fuels with renewable energy sources has become one of the most relevant sustainability trends of the 21st century. Global renewable energy capacity stood at 4.4 terawatts in 2024 , nearly four times the capacity in 2010. Nevertheless, forecasts show this figure will need to continue growing at an even higher rate, for a chance to limit global warming to 1.5 degrees Celsius above pre-industrial levels. Likewise, the deployment of other clean energy technologies, such as electric vehicles, carbon capture and storage (CCS), and battery storage, are also expected to grow significantly in the coming years. Overall, investments in energy transition technologies surpassed two trillion U.S. dollars in 2024, growing 11 percent year-over-year.To aid in long-term investments in sustainable projects and support the shift to a low-carbon economy, various financial instruments have been introduced in recent years. One such instrument is green bonds, which fund climate and environmental projects. In 2023, green bonds issued worldwide amounted to roughly 600 billion U.S. dollars, a 16-fold increase in comparison to a decade earlier. Green bonds are part of a larger category of sustainable investing, also known as environmental, social, and governance (ESG) investing. In contrast to green bonds, ESG funds include a much wider range of projects, from affordable housing and improved infrastructure projects, to improving working conditions and gender equality. Returns on sustainable funds have regularly outperformed traditional funds in the past five years.
