Will the total global value of corporate debt (bonds and loans) explicitly linked to ESG (Environmental, Social, Governance) criteria exceed $10 trillion before the end of 2028?

ESG Debt Milestone: Exceeding $10 Trillion by 2028

Corporate debt linked to ESG criteria (e.g., green bonds, sustainability-linked loans) incentivizes companies to meet specific environmental or social targets, offering favorable borrowing costs if targets are met. This prediction states that the total global value of this explicitly linked corporate debt will exceed $10 trillion before the end of 2028.

Institutional Mandate and Market Depth

The high 'Yes' vote is driven by the clear, sustained trajectory of the sustainable finance market:

• **Investor Demand:** Major pension funds and institutional investors have mandates to deploy capital only into ESG-aligned debt, creating overwhelming demand.
• **Issuer Benefit:** Companies can often secure better rates and broader investor bases by issuing green or sustainability-linked bonds.
• **Standardization:** Continuous improvement in reporting standards and taxonomy (though controversy persists) is building market trust.

The $10 trillion mark is a significant psychological and financial barrier that reflects the shift of sustainable finance from a niche market to a core pillar of global debt issuance.