Global sustainable fund assets under management rose 15% to reach USD 3.9 trillion in the fourth quarter of 2025, according to TD Securities' 2025 Sustainable Finance Year in Review and 2026 Outlook. The review was published in early March 2026.
Green bonds and loans set new records in 2025, TD Securities noted, even as total sustainable debt issuance fell 7% to USD 1.6 trillion, sustainability-linked issuance declined and some issuers moved away from formal sustainable labels in response to the US political environment.
SOCIAL BOND ISSUANCE
Financial-services social bond issuance declined in 2025 amid the politicisation of ESG, according to TD Securities' review. Issuance in this category faded as diversity, equity and inclusion programmes came under political scrutiny. TD Securities said many institutions scaled back or retired the targets that once anchored their social frameworks.
In Europe, borrowers with existing sustainable bond programmes further increased their share of the market to 88%, as such programmes have become normalised across the region. In Asia, corporate issuance grew year on year while sovereign, supranational and agency issuance declined slightly; China recorded nearly 50% growth in green bond issuance.
FUND ASSETS AND OUTLOOK
The 15% rise in global sustainable fund AUM to USD 3.9 trillion came as fund flows remained resilient over 2025, according to TD Securities.
TD Securities' review noted that green bonds and loans set new records even as financial-services social bond issuance faded.
The 2026 outlook section of TD Securities' publication flagged continued growth potential in sustainable debt markets, expecting sustainable debt issuance volumes on par with 2025, skewing further towards Europe and Asia-Pacific, with global investment in renewables poised to accelerate. The findings represent TD Securities' own assessment of the market landscape and are drawn from the bank's research and capital markets data as of the publication date.
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