Environmental, Social, and Governance (ESG) Wealth Management Product Market Report 2025

The environmental, social, and governance (ESG) wealth management product market size has grown rapidly in recent years. It will grow from $1.77 trillion in 2024 to $2.05 trillion in 2025 at a compound annual growth rate (CAGR) of 15.4%. The growth during the historic period can be credited to the rising demand for responsible investing, increased awareness of climate change effects, heightened regulatory requirements for environmental, social, and governance disclosures, greater emphasis on corporate transparency, and growing investor interest in ethical governance.

The environmental, social, and governance (ESG) wealth management product market size is expected to see rapid growth in the next few years. It will grow to $3.59 trillion in 2029 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period is expected to be driven by the deeper integration of environmental, social, and governance factors into investment strategies, wider adoption of digital ESG reporting tools, expanding global initiatives supporting sustainable finance, increased demand for tailored ESG investment products, and stronger corporate commitments to sustainability targets. Key trends in the forecast period include improvements in ESG data management platforms, the creation of personalized investment solutions, innovations in sustainable financial products, enhanced regulatory compliance technologies, and the advancement of integrated digital reporting systems.

The growth of the fintech industry is expected to drive the expansion of the environmental, social, and governance (ESG) wealth management product market due to increasing demand for digital, ethical, and accessible financial services. The fintech sector focuses on leveraging technology to provide financial services more efficiently and innovatively. Demand for fintech is rapidly rising as consumers prefer fast, convenient, and personalized digital financial services over traditional banking. ESG wealth management products complement the fintech sector by creating demand for digital platforms that deliver transparent, ethical, and responsible investment solutions. For example, according to the GS Verde Group, a UK-based advisory firm, fintech investment reached approximately $3.21 billion (£2.42 billion) in 2024, with the UK hosting over 1,800 active high-growth fintech companies. These firms have collectively secured $41.17 billion (£31 billion) in equity funding to date. Thus, the expanding fintech sector is fueling growth in the ESG wealth management product market.

Leading companies in the environmental, social, and governance (ESG) wealth management product market are concentrating on innovative solutions such as ESG investing-as-a-service to facilitate ESG integration across portfolios, improve transparency, and provide scalable, customizable options for retail and institutional investors. ESG investing-as-a-service refers to platform-based solutions that enable financial institutions to incorporate ESG factors into investment portfolios using ready-made tools, data, and analytics without the need to develop infrastructure internally. For instance, in May 2022, Switzerland-based Temenos AG launched an ESG investing-as-a-service designed for banks and wealth managers to address the growing demand for sustainable investing. This cloud-based or on-premise solution allows financial institutions to quickly create ESG-compliant investment products and digital experiences, enabling investors to build portfolios aligned with their values. It combines Temenos’ front office, market data management, and digital tools with external ESG data from multiple providers, offering clear ratings on numerous ESG factors. The service also supports regulatory compliance, including the EU’s new MiFID rules, while helping reduce development costs and speeding up time-to-market for ESG products.

In April 2022, Goldman Sachs Group Inc., a US-based investment banking and financial services firm, acquired NN Investment Partners for $1.9 billion. This acquisition aims to enhance Goldman Sachs’ sustainable investing capabilities by integrating NN IP’s ESG expertise into its global portfolio management, expanding assets under supervision, and meeting rising client demand for responsible investment solutions. NN Investment Partners, based in the Netherlands, provides environmental, social, and governance (ESG) wealth management products.

Major players in the environmental, social, and governance (ESG) wealth management product market are J.P. Morgan Investment Management Inc., Morgan Stanley Smith Barney LLC, Goldman Sachs Asset Management L.P., UBS Asset Management LLC, Fidelity Management & Research Company LLC, Merrill Lynch Pierce Fenner & Smith Inc., BlackRock Inc., State Street Global Advisors Trust Company, Wells Fargo Advisors LLC, Northern Trust Investments Inc., Natixis Investment Managers S.A., Amundi Asset Management S.A., Invesco Ltd., Schroder Investment Management Limited, Neuberger Berman Group LLC, Pacific Investment Management Company LLC, AXA Investment Managers S.A., BNP Paribas Asset Management S.A., The Vanguard Group Inc., Allianz Global Investors GmbH, Sumitomo Mitsui DS Asset Management Company Limited, Trillium Asset Management LLC, Skandia Investment Group S.A., and WHEB Asset Management LLP.

North America was the largest region in the environmental, social, and governance (ESG) wealth management product market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in environmental, social, and governance (ESG) wealth management product report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the environmental, social, and governance (ESG) wealth management product market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

An environmental, social, and governance (ESG) wealth management product is an investment solution that incorporates environmental sustainability, social responsibility, and corporate governance criteria into asset selection and management. Its purpose is to promote ethical practices alongside financial growth. These products aim to deliver competitive returns to investors while ensuring their investments have a positive impact on society and the environment, demonstrating a dedication to long-term sustainable value creation.

The primary categories of environmental, social, and governance (ESG) wealth management products include equity funds, fixed income funds, multi-asset funds, alternative investments, and others. Equity funds are pooled investment vehicles that mainly invest in publicly traded company stocks to generate long-term capital appreciation. These products cater to a diverse client base, including retail investors, high net worth individuals, institutional investors, and more, and are distributed via channels such as direct sales, financial advisors, and online platforms. They are applied in areas such as risk management, financial investing and management, corporate governance, and other uses.

The environmental, social, and governance (ESG) wealth management product market research report is one of a series of new reports that provides environmental, social, and governance (ESG) wealth management product market statistics, including the environmental, social, and governance (ESG) wealth management product industry's global market size, regional shares, competitors with the environmental, social, and governance (ESG) wealth management product market share, detailed environmental, social, and governance (ESG) wealth management product market segments, market trends, and opportunities, and any further data you may need to thrive in the environmental, social, and governance (ESG) wealth management product industry. This environmental, social, and governance (ESG) wealth management product market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The environmental, social, and governance (ESG) wealth management product market includes revenues earned by entities by providing services, such as sustainable investment advisory, ESG portfolio screening and scoring, impact investing solutions, climate risk assessment services, and ESG data integration and reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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