19 Dec 2024

LSEG study proves Green Economy outperforms global market

In this ESG Today article, written 11 July 2024, the fifth annual London Stock Exchange Group (LSEG) study finds the market for environmental and climate solutions, or “Green Economy,” has grown substantially faster than the broader market, both in terms of revenue and valuation.

This article covers :
- Data-driven findings including the green economy has grown at a significantly higher rate than the broader market with market cap increasing at a 13.8%, and the Energy Management and Efficiency has been the best-performing area of the green economy, growing at a 17% CAGR over the past five years.
- One of the key potential future drivers of green economy performance: the growth of digital technologies, particularly artificial intelligence (AI) and data centres.
- The “green exposure” of various sectors, measured by green revenue-weighted market capitalisation, was found to have greater than 10% exposure in around one third of industries.

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