PART 4: WHAT IF ESG INVESTING SUCCEEDS - AND WHAT IF IT COLLAPSES?
Now, we move beyond past debates to consider ESG’s long-term trajectory—whether it can really solidify its role in finance or face a credibility crisis. The Success Scenario ðĨģ If ESG succeeds, it will become a part of mainstream finance and could grow to $33.9 trillion by 2026. Lower capital costs, greater investor trust and enhanced long-term stability are all possible outcomes for companies that incorporate ESG principles. Green finance will flourish, with sustainable bonds surpassing $1 trillion by 2025. Environmentally, this means accelerated carbon reductions as well as stronger corporate climate action and increased biodiversity protection — validating ESG’s role in sustainable transformation. Even though the markets already indicate that ESG is here to stay, the future is still unclear because its longevity will ultimately depend on changing regulations, economic conditions, and investor sentiment. Source: PWC The Collapse Scenario ð If ESG fails, it wo...


