As we come closer to 2050, our collective shortcomings in financing the transition to a sustainable economy loom over us. Over $105 trillion USD in additional spending is required over the next 30 years to reach Net Zero, an increase of more than 60% of our current spending[1]. Immediate and tangible action is required to achieve this. As a result, investors’ needs and obligations are evolving due to shifting preferences, regulatory demands, and a desire to capitalise on this market shift.
Private debt offers investors an excellent opportunity to meet these needs through financing investments positively contributing to a sustainable economy, encouraging markets to broadly focus on sustainable investments and offering an opportunity to directly finance opportunities with tangible impact while accessing returns superior to those found in public markets.
This WTW paper explores the growing field of sustainable and impact investing within the private debt market. It offers insights into key trends, investment strategies, and the potential for generating both financial returns and positive societal impact.
