The state of sustainable finance in the United States

This report examines the state of sustainable finance in the United States, where evolving market practices increasingly integrate environmental, social, and governance (ESG) considerations. While historically seen as lagging behind European counterparts, US financial institutions are now experiencing significant shifts driven by rising awareness—especially among millennials—and by innovations in investment, lending, and policy. The report explores developments in climate risk disclosure, impact investing, green bonds, and conservation finance, alongside growing attention from banks, insurers, and regulators. It also highlights how financial and social innovation are reshaping investment culture, with shifting energy cost curves enabling a low-carbon transition. Drawing on interviews, case studies, and market data, the report identifies barriers, maps opportunities, and offers recommendations for aligning capital flows with long-term sustainability goals. It is part of UNEP’s Inquiry into the Design of a Sustainable Financial System.