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How consumer interest in ESG is driving investment trend
How consumer interest in ESG is driving investment trends.
S
ustainability is increasingly top of
mind for consumers, businesses, and investors. People are buying from companies that share their values and investors are putting their money into operations that want to do good, while businesses see embracing environmental, social and governance (ESG) issues as both a competitive advantage and the right thing to do.
The only way the world will get to net-zero, though, is if progress is properly funded, whether that’s providing business access to sustainable financing or ensuring there are enough investment opportunities
on the market.
For the future to be properly financed, investors and businesses need to understand what it will take to get to net-zero and learn about the various solutions that can help stakeholders reach their goals.
Watch the video to learn more.
85%
of Consumers say they want to buy more sustainable products than five years ago.
Business wire
25%
of Investors say ESG
is central to their investment approach.
Harvard Law School
66%
Of Companies have
set targets to reduce greenhouse gas emissions.
Morgan Stanley Refinitiv
20%
of the World’s largest publicly-listed companies have committed to producing almost no emissions by 2050.
Energy & Climate
Growth of ESG Assets
The Age Factor
A Missed Opportunity
Interest in ESG is growing exponentially. By 2030, global assets into ESG-focused investments could climb to $30 trillion, up from about
$8 trillion in 2020.
Growth of ESG Assets
between
$14-$19 TRILLION BY 2025
MID
HIGH
LOW
Broadridge
Consumers across the age spectrum care increasingly more about ESG issues, but the importance of purpose in purchasing decisions is especially strong in millennials and Gen Z. It’s these two cohorts that will drive most of the purchasing and investing decisions in the years ahead.
The Age Factor
What consumers value in companies when making purchase decisions:
millennials
GEN Z
GEN X
MCKINSEY
Authenticity
HeaLth
Diversity
Authenticity
BABY BOOMERS
% of respondents indicating "very important"
32%
HeaLth
42%
Diversity
42%
There’s a massive need and opportunity for sustainable financing, with much more money needed to fund the energy transition than what’s already been committed and raised.
A missed opportunity
GLOBAL ANNUAL BANKING REVENUES RELATED to sustainability operations
2025 PROJECTION
2021
MCKINSEY
Buyer-Led and Supplier-Side Trade Finance
Documentary Trade Finance
Cards
Account-Related Liquidity
Payments and Liquidity Management
Total sustainable GTB
9-11 Billion
4 Billion
3 Billion
3 Billion
3 Billion
15 Billion
CME Group has developed a number
of risk-mitigation tools and solutions to help investors and market participants mitigate ESG and climate change risks.
E-mini S&P 500 ESG Index
Voluntary Carbon Emissions Offsets
ESG education
Investors are looking for more ways to integrate ESG factors into their portfolios and yet still earn market returns. The S&P 500 ESG Index allows them to do just that – it’s based on the S&P 500 index, but includes companies that rate well on an ESG scoring system. To earn additional returns, CME Group launched the E-mini S&P 500 ESG Index, a futures-based product that allows investors to buy and sell futures contracts based on the S&P 500 ESG Index. This solution gives investors another way to invest with their values.
Sustainability is not simple, even if the concepts of equality, carbon reduction and good governance are easy to understand. Financing new projects, investing in ESG solutions, and running an emissions-free business — these can be challenging ideas for people to wrap their heads around. Going forward, ESG-focused education will become that much more vital. The more investors, consumers, market participants, executives and others know about sustainability, the easier it will be to get buy-in from all stakeholders. CME Group’s ESG report, among other materials, can help everyone get a better idea of what’s needed to
finance a net-zero future.
Many of the companies embracing sustainability still
have a way to go before they can reach net-zero emissions.
In the meantime, businesses are buying carbon emissions offsets
— a voucher that accounts for the difference between the company’s emissions and its carbon-reducing goals. The money they spend is put toward emissions-reducing projects, such as building a solar farm or planting new forests. It’s a win-win: Those dollars can be used to finance much-needed infrastructure while giving companies an opportunity to meet their goals during their own net-zero energy transition. CME Group’s voluntary carbon emissions offsets offering allows market participants to buy and
sell carbon offsets transparently.
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Explore more about ESG solutions from CME Group.
Learn More
How consumer interest
The Age Factor
Growth of ESG Assets
A Missed Opportunity
A Missed Opportunity
Growth of ESG Assets
The Age Factor
Investors are looking for more ways to integrate ESG factors into their portfolios and yet still earn market returns. The S&P 500 ESG Index allows them to do just that – it’s based on the S&P 500 index, but includes companies that rate well on an ESG scoring system.
Investors are looking for more ways to integrate ESG factors into their portfolios and yet still earn market returns. The S&P 500 ESG Index allows them to do just that – it’s based on the S&P 500 index, but includes companies that rate well on an ESG scoring system.
Many of the companies embracing sustainability still have a way to go before they can reach net-zero emissions. In the meantime, businesses are buying carbon emissions offsets — a voucher that accounts for the difference between
the company’s emissions and its
carbon-reducing goals.
Many of the companies embracing sustainability still have a way to go before they can reach net-zero emissions. In the meantime, businesses are buying carbon emissions offsets — a voucher that accounts for the difference between
the company’s emissions and its
carbon-reducing goals.
Those dollars can be used to finance
much-needed infrastructure while giving companies an opportunity to meet their goals during their own net-zero energy transition. CME Group’s voluntary carbon emissions offsets offering allows market participants to buy and sell carbon offsets transparently.
The money they spend is put toward emission-reducing projects, such as building a solar farm or planting new forests. It’s a win-win:
Many of the companies embracing sustainability still have a way to go before they can reach net-zero emissions. In the meantime, businesses are buying carbon emissions offsets — a voucher that accounts for the difference between
the company’s emissions and its
carbon-reducing goals.
36%
58%
53%
36%
53%
58%
33%
40%
52%
33%
40%
52%
19%
24%
47%
19%
24%
47%
CREATED BY
Sponsored content is produced in collaboration with advertisers by Insider Studios, the branded content team at Insider Inc. Insider's editorial staff is not involved in the creation of this content. Copyright © 2023 Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service, Privacy Policy and Cookies Policy.
Contact Us | Masthead | Sitemap | Disclaimer | Accessibility | Commerce Policy | Advertising Policies | CA Privacy Rights | Coupons | Made in NYC | Jobs @ Insider
CREATED BY
Sponsored content is produced in collaboration with advertisers by Insider Studios, the branded content team at Insider Inc. Insider's editorial staff is not involved in the creation of this content. Copyright © 2023 Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service, Privacy Policy and Cookies Policy.
Contact Us | Masthead | Sitemap | Disclaimer | Accessibility
Commerce Policy | Advertising Policies | CA Privacy Rights Coupons Made in NYC | Jobs @ Insider
Growth of ESG Assets
The Age Factor
A Missed Opportunity