The ESG-labelled debt universe grew by 25% in 2023, nearing $6 trillion. However, this is still less than 2% of the global debt universe—policy support, including from the G20 Brazil Presidency, could support substantial market expansion.

The ESG debt universe has expanded by $1.1 trillion over the past four quarters, surpassing $5.6 trillion in Q3 2023.

The ESG debt universe (bonds and loans) hit a fresh record high of $5.4 trillion in H1 2023, up 30% from H1 2022. However new ESG debt issuance slowed to some $630 billion in H1 2023—over 15% lower than in H1 2022.

The ESG debt universe hit $5.1 trillion in Q1 2023, up from $3.8 trillion a year ago and $2.3 trillion in Q1 2021. Amid the recent banking sector turmoil, ESG loan issuance fell sharply in Q1 2023, coming in at $40 billion—over 65% lower than in Q4 2022. In contrast, ESG bond issuance reached its highest level in five quarters.

The ESG debt universe is fast approaching the $5 trillion mark, up from $3.4 trillion in 2021. While rising global rates weighed on total issuance in 2022, issuance in emerging markets remained strong, reaching an all-time high of $260 billion—mostly driven by China.

The ESG debt universe has grown rapidly, to near $4.5tr in Q322, up from $3tr in Q321 and $1.5tr in Q320. However, overall ESG debt issuance has slowed sharply this year amid broader debt market disruption.