NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Climate change consciousness has led to global investment firms prioritising sustainable investments, not only for long-term financial returns but to also provide positive social effects. While investments in sustainability account for one-third of assets under management (AuM) in the United States and 36% of AuM globally, the Indian sustainable investment space only makes up 10-15% of AuM, by private equity (PE) and venture capital (VC) firms currently. However, growth in the space is gaining momentum. According to a report by Benori Knowledge, a new-age provider of custom research and analytics solutions, sustainable investments by Indian PE and VC firms are projected to grow to $125 billion by 2026, at a 5-year CAGR of 46%.