The 7th GSIA Global Sustainable Investment Review: From a Niche Practice to a Systemic Consideration finds that despite headwinds, sustainable and responsible investment has moved from to a ‘systemic consideration’.

Despite these challenging political and economic conditions, there are signs that a sustainable economic transition is underway, with developments including enhancements to sustainability disclosures, which began in the EU, have now spread across many Global Sustainable Investment Alliance (GSIA) regions.

The biennial Review, published during COP30, describes how the global economic, political, and sustainability landscape has been characterised by volatility and fragmentation over the last two years. However, throughout this period of uncertainty, it points to a renewed effort to anchor finance within the transition to a net-zero economy.

The analysis finds that the value of fund assets reporting the use of responsible or sustainable investment approaches has reached $16.7tr, increasing by nearly $5.5tr (49 per cent) over the last two years.

But the report cautions that a weakening political consensus on climate policy has the capacity to undermine progress. It warns: “In the absence of government interventions to reshape the global economy onto a sustainable trajectory, capital will remain incentivised to exacerbate climate change rather than address it.”

The report also shares concerns over the “policymaker investment dilemma” whereby policymakers previously placed significant expectations on private capital to finance the transition without fully understanding the nature of investment decisions.

James Alexander, chair of the GSIA and CEO of the UK Sustainable Investment and Finance Association (UKSIF), said: “This report demonstrates that the sustainable investment industry is on a rapid evolutionary trajectory, from a highly specialised field to market-wide consideration. The record growth of the green economy highlights how quickly the sustainable transition is progressing.”

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