ESG (Environmental, Social, and Governance) investment has developed rapidly over the past decade, gradually moving from an initial niche concept to mainstream financial markets. As of early 2026, global ESG AUM has exceeded USD 35 trillion, accounting for 38% of total global AUM.
Green bonds: Issuance scale hits new high
Global green bond issuance exceeded USD 1 trillion in 2025, up 18% YoY. China, the EU, and the US are the main issuance markets. Green bond proceeds are mainly used in renewable energy, clean transportation, green buildings, pollution prevention, and other fields. In addition to green bonds, innovative categories such as blue bonds, transition bonds, and sustainability-linked bonds are developing rapidly.
Impact investing: Pursuing win-win of financial returns and social value
Impact investing has ushered in rapid development in 2026. Unlike traditional ESG investment, impact investing places greater emphasis on measurable social and environmental outcomes. Beta International Securities recently launched an impact investing fund focused on leading enterprises in clean energy, inclusive finance, medical health, education technology, and other fields.
Regulatory frameworks: International convergence with Chinese characteristics
The IFRS S1/S2 Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) have been implemented in multiple jurisdictions. The China Securities Regulatory Commission requires listed companies to complete mandatory ESG disclosure by 2027, and the Hong Kong Stock Exchange has also raised ESG reporting standards. Regulatory convergence has improved ESG data quality and comparability.
Looking ahead, ESG investment will shift from scale expansion to quality improvement, and standardized and mandatory information disclosure will promote healthier industry development. Investors are advised to focus on enterprises with clear ESG strategies, high-quality governance structures, and measurable social impact.