Report: ESG fundraising reaches record highs in 2024 amid market challenges
GIIA and Realfin launch new ESG report
For Immediate Release
London, 24 March, 2025 – ESG-related fundraising in the infrastructure sector has reached unprecedented levels in 2024, defying broader economic headwinds and underlining investors' growing commitment to sustainable infrastructure. The newly released Global Infrastructure ESG Report 2024, produced in collaboration with Realfin, provides an in-depth analysis of this year’s ESG investment trends, highlighting the sector’s resilience.
Despite an overall 20% decline in total private infrastructure fundraising, ESG-focused funds secured an impressive USD 106.74 billion, reflecting a remarkable 58% year-on-year increase. ESG-related capital also accounted for a record 92% of all private infrastructure funding raised, demonstrating a decisive shift towards sustainable investment strategies.
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). This geographic distribution underscores the global appeal of ESG-focused infrastructure investments, despite evolving regulatory landscapes.
Regulatory developments continue to shape the ESG investment landscape. In Europe, the Corporate Sustainability Reporting Directive (CSRD) and updates to the Sustainable Finance Disclosure Regulation (SFDR 2.0) are reinforcing sustainability commitments through enhanced ESG disclosure requirements. Meanwhile, the United States faces policy uncertainties under the second Trump administration, which may impact ESG investment frameworks.
Nevertheless, ESG funds continue to attract strong investor interest, with value-add strategies leading fundraising at USD 36.2 billion, followed by core-plus (USD 25.2 billion) and core strategies (USD 24.8 billion). The report also highlights a growing focus on biodiversity finance, energy transition, and climate resilience, reflecting infrastructure investors’ strategic alignment with long-term sustainability objectives.
Jon Phillips, CEO of the Global Infrastructure Investor Association, said: “Despite global market challenges and political signals, infrastructure investors are demonstrating their commitment to sustainability by channelling capital into projects that drive long-term environmental and social value. This trend underscores the crucial role of private investment in advancing the global energy transition and building a more resilient future.”
Nikola Yankulov, Head of Research & Data Operations at Realfin said: "Realfin's infrastructure ESG data speaks for itself. ESG-focused infrastructure fundraising has not only defied broader market trends but has reached record highs, signalling a persistent shift in investor priorities. The scale of capital committed to sustainable infrastructure fundraising highlights the increasing alignment between ESG considerations and long-term investment strategies in infrastructure, even against an increasingly contentious political backdrop in some geographies."
The full Realfin-GIIA Global Infrastructure ESG Report 2024 is now available, offering comprehensive analysis and data-driven insights to support industry stakeholders in their strategic decision-making.
ENDS
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Claire McWatt
Senior Communications Officer
cmcwatt@giia.net