Europe leads with $8.6 billion in new net investment in sustainable funds

Global sustainable open-end and exchange-traded funds saw net inflows of $4.9 billion in Q2 2025, despite geopolitical and regulatory uncertainties.

Europe leads with $8.6 billion in new net investment in sustainable funds.

Global sustainable fund assets reach $3.5 trillion and Europe holds 85% of global sustainable fund assets.

The figures were presented at the launch of Euronext Sustainability Week 2025 and emerge amid geopolitical and regulatory headwinds. The United States is backtracking on climate-focused policies. Meanwhile, in Europe, rising defense budgets are shifting the focus of European policies.

At the launch presentation for Euronext Sustainability Week 2025, the European stock exchange platform revealed that the group's listed large-caps submitted 300 CSRD (Corporate Sustainability Reporting Directive) reports.

Despite uncertainty surrounding the European Union's sustainability reporting rules, Euronext listed companies generated €279 billion in revenue aligned with the European Union taxonomy in 2024. "CapEx aligned with the EU taxonomy is 30% higher than OpEx aligned with the EU taxonomy," according to the Euronext presentation.

“More than a third (35.2%) of board positions are now held by women, after an increase of 2.8 percentage points since 2022; women are advancing in leadership, with representation on management bodies increasing by 1.1 percentage points in three years; and the board independence rate is 52.3%, after continued progress in governance standards,” Euronext revealed.

Last Thursday, Mathieu Caron, Head of Primary Markets at Euronext, and Camille Leca, Head of ESG, presented the strategic priorities and main events of the week, with new perspectives on the evolution of ESG reporting practices of listed companies across Europe.

They reaffirmed “Euronext’s unique position as the only exchange to standardize and publish ESG data for its listed companies, with almost 1,800 ESG profiles available for companies listed on Euronext.”

Euronext is launching My ESG Benchmark, a digital platform that allows listed companies to more effectively assess and compare their ESG performance.

“Euronext is launching an updated version of our ESG Reporting Guide to help listed companies navigate the increased disclosure requirements arising from the Omnibus Package and the rising expectations regarding transition plans and biodiversity,” they announced.

The ESG Trends Report 2025 covers more than 1,550 listed companies based on reported and verified data, and 88% of Euronext issuers had information available as of July 30, 2025. The aggregate market capitalization of this universe of companies is approximately €6.2 trillion. Companies of all sectors and sizes, from more than 35 countries, are represented.

Euronext is the global leader in ESG (Environmental, Social, and Governance) securities listings with over 3,100 listed ESG securities; over 600 unique ESG issuers; and over €1.7 trillion issued through ESG securities.

It is also a global leader in ESG indices and ETFs, with more than 500 ESG indices; more than 125 ESG families of diverse indices (blue chips, climate, biodiversity, gender equality, etc.) and more than 1,250 ESG ETFs.

The Euronext Sustainable Network is an initiative that aims to provide qualitative intelligence to the financial and business communities to strengthen their collective impact on sustainable finance.