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$9 Trillion in Investments Flow into Green Economy

By 3p Editors
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Ethical Markets has released its 2018 Green Transition Scoreboard® (GTS). The Scoreboard tracks cumulative private investment in green sectors worldwide, measuring the transition to renewable energy, green finance, and circular economies since 2007. This report’s total for such investment is set at $9,317,882, 308,406.

The report follows on Ethical Markets’ 2017 "Deepening Green Finance" and 2016 "Ending Externalities: Full Spectrum Accounting Clarifies Transition Management" studies. Companies tracked by the GTS are those avoiding negative externalities and focused on transition management in the context of the UN Sustainable Development Goals (SDGs) and the Climate Summits.

The GTS tracks renewable energy, energy efficiency, life systems, green construction and corporate green R&D, representing broad areas of investment in green technologies. Each sector covers an area of substantial capital investment in technologies which are contributing to the growing green economy.

The 2018 GTS continues these systemic explorations and how investments can be redirected to address all 17 Sustainable Development Goals (SDGs) ratified by the 195 member countries of the United Nations in 2015.

The upward trend in investments since 2007 aligns with a recommendation to invest at least 10% of institutional portfolios directly in companies driving the global Green Transition, updating strategic asset allocation models both as opportunities and as risk mitigation. Excluding government investments to the extent possible, the $9.37 trillion in private investments and commitments as of 2018 puts private investors on track to reach $10 trillion in green sectors investments globally by 2020.

Sources of financial data are screened by rigorous social, environment and ethical auditing standards, and also by tracking the evolution of these standards worldwide.

In its overview, the report follows global digitization trends, the future of the Internet and the politicization of social media. Full details here.

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TriplePundit editors offer news and insights on sustainable business.

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