GIIA and Realfin latest report highlights ESG fundraising continues to grow in 2024
The Global Infrastructure ESG report in collaboration with Realfin highlights recent developments in ESG fundraising and the continued global maturity of ESG practices
ESG-related fundraising continues to rise as a portion of infrastructure fundraising. Our report examines activity from Q1 to Q3 2024, during which US$64 billion was raised across 52 funds—almost double the amount raised last year.
Interestingly, in Q2 2024, we saw an increase in ESG-related fundraising even as global private infrastructure fundraising declined by 47%. As in 2023, the US remains the leading location for fund managers raising ESG capital, with 31% of all funds raised there, followed closely by the UK at 19% and France at 10%.
Our report also notes that Article 9 funds are more often associated with the riskier value-add strategy, while Article 8 funds are more aligned with core and core-plus strategies.
While appetite for ESG-related fundraising grows, the political and media narrative remains challenging, particularly in the run-up to the US presidential elections. Conversely, the EU maintains its sustainability momentum, with public opinion consistently ranking climate change as a top priority for consumers.
We are currently developing our Q4 report and are seeking guest article contributions. Your thoughts and expertise are crucial in sustaining this report. Email Vlad Benn to follow up.