Sustainable finance accelerates with new ESG data platforms, green bond launches, and regulatory clarity powering the global clean technology shift.
At a glance – The past 24 hours have seen a marked uptick in ESG investing activity, with new data showing that ESG-focused exchange-traded funds (ETFs) continue to outperform traditional funds over the long term. According to Morgan Stanley’s latest Sustainable Reality report, a $100 investment in an ESG fund in 2018 would be worth $136 by 2024, compared to $131 for a traditional fund. This performance, coupled with a record number of ESG ETFs now available, is driving both institutional and retail investors to increase allocations to sustainable assets. The trend is further reinforced by a growing demand for impact reporting and transparency, as investors seek to ensure their capital is driving measurable environmental and social outcomes. The proliferation of ESG funds is also enabling investors to target specific impact areas, such as renewable energy or diversity in leadership, aligning portfolios with personal and organizational values.
Technology advance – In a significant move for ESG data infrastructure, Diginex Limited completed its all-share acquisition of Copenhagen-based Matter DK ApS on October 3, 2025. The $13 million transaction brings together Diginex’s RegTech innovations in blockchain, AI, and machine learning with Matter’s advanced ESG data benchmarking and analytics tools. The integration will enhance Diginex’s diginexESG platform, which already supports reporting across 19 global standards, and is expected to streamline data collection and improve reporting accuracy for financial institutions and corporations. The acquisition positions Diginex as a leading provider of end-to-end ESG solutions, empowering clients to navigate increasingly complex sustainability regulations and make data-driven investment decisions that support the clean transition.
Partnerships – The global push for sustainable finance saw a new alliance this week as BNP Paribas and Enel announced a strategic partnership to develop innovative green financing instruments tailored for the energy sector. The collaboration aims to design bespoke green bonds and sustainability-linked loans that incentivize decarbonization and renewable energy deployment across Europe. BNP Paribas will leverage its expertise in structuring sustainable finance products, while Enel will provide sector-specific insights and project pipelines. The partnership is expected to mobilize over €2 billion in new green capital over the next 18 months, targeting both large-scale infrastructure and distributed energy projects. This move underscores the increasing role of cross-sector alliances in scaling up climate-positive capital flows and accelerating the energy transition.
Acquisitions/expansions – In the green bond market, China Construction Bank made headlines by issuing a record $1.5 billion in dual-currency green bonds, marking the largest single-day green bond issuance by a Chinese bank in 2025. The bonds, denominated in both USD and RMB, will finance renewable energy, clean transportation, and water management projects across China and Southeast Asia. The issuance attracted strong demand from international investors, reflecting growing confidence in China’s commitment to sustainable development and the robustness of its green finance framework. The bank’s move is part of a broader expansion strategy to position itself as a global leader in sustainable finance, with plans to double its green lending portfolio by 2027.
Regulatory/policy – Regulatory clarity advanced in the United States as the Securities and Exchange Commission (SEC) finalized new rules requiring public companies to disclose climate-related risks and greenhouse gas emissions in their annual filings. The rules, effective for fiscal years beginning after January 1, 2026, mandate both qualitative and quantitative disclosures, including scenario analysis and transition plans. The SEC’s action is expected to standardize ESG reporting, reduce greenwashing, and provide investors with more reliable information for decision-making. Legal experts note that the new requirements will also drive demand for ESG data and assurance services, creating opportunities for technology providers and consultancies specializing in sustainability reporting.
Finance/business – On the investment front, BlackRock reported a 22% year-over-year increase in assets under management (AUM) for its suite of ESG and climate-focused funds, reaching $650 billion as of September 30, 2025. The growth was driven by strong inflows from pension funds, sovereign wealth funds, and retail investors seeking exposure to clean energy, circular economy, and social impact themes. BlackRock’s CEO, Larry Fink, highlighted the firm’s commitment to integrating ESG factors across all investment strategies and called for greater collaboration between asset managers, regulators, and corporates to accelerate the transition to a net-zero economy. The firm also announced plans to launch a new climate innovation fund targeting early-stage clean technology ventures in North America and Europe, with an initial capital commitment of $2 billion.
Sources: NerdWallet, QuiverQuant, Reuters, Bloomberg, SEC.gov, BlackRock press release
