ESG fundraising reaches record highs in 2024 amid market challenges
The Global Infrastructure ESG Report 2024, produced in collaboration with Realfin, provides in-depth analysis of the year’s ESG investment trends, highlighting the sector’s resilience and growing investor commitment to sustainable infrastructure.
ESG-related fundraising in the infrastructure sector has demonstrated remarkable resilience in 2024, despite broader economic headwinds. ESG-focused funds raised an impressive USD 106.74 billion, marking a 58% year-on-year increase and accounting for 92% of all private infrastructure capital raised—the highest proportion on record.
This trend highlights the ongoing shift towards sustainable investment strategies, even as total private infrastructure fundraising experienced a 20% decline. The United States remains the leading domicile for ESG fund managers, representing 35% of funds, followed by the United Kingdom (18%) and key European markets such as France and Spain (7% each).
While appetite for ESG investments remains strong, the regulatory landscape continues to evolve. Europe has reinforced its sustainability commitments through the Corporate Sustainability Reporting Directive (CSRD) and updates to SFDR (2.0), ensuring rigorous ESG disclosures. Meanwhile, the US faces uncertainties under the second Trump administration, potentially impacting ESG investment policies.
Despite political shifts, ESG funds continue to attract investor capital, with value-add strategies leading fundraising at USD 36.2 billion, followed closely by core-plus (USD 25.2 billion) and core (USD 24.8 billion) strategies. The report also highlights a growing focus on biodiversity finance, energy transition, and climate resilience, reflecting infrastructure investors' strategic alignment with long-term sustainability goals.
The full Realfin-GIIA Global Infrastructure ESG Report 2024 is now available, offering detailed analysis and data-driven insights to support industry stakeholders in their strategic planning.