The MSCI Institute’s Transition Finance Tracker details progress by companies and investors to navigate the shift to a cleaner, more resilient global economy. The quarterly report offers a snapshot of the transition in charts covering financial flows, physical risk and nature, emissions, targets and disclosure based on data from MSCI and others. Here are some selected charts:
Climate capital proves sticky
Assets in public climate-themed funds rose nearly 12% in the first nine months of the year, to USD 625 billion, extending the double-digit growth of recent years after a rapid expansion of investment between 2018 and 2021.
Publicly traded climate funds (assets under management)
Source: MSCI ESG Research and MSCI Private Capital. Public funds data as of Sept. 30, 2025.
Transition opportunities are expanding globally
Companies in Europe and Asia gained over 15 percentage points in their share of assets in climate-themed funds since the start of the year, benefiting from a shift away from U.S. companies that have traditionally dominated.
Investments of climate-themed funds by region (%)
Source: MSCI ESG Research, data as of Sept. 30, 2025.
Corporate progress continues
One-fifth (21%) of listed companies have set a climate target validated by the Science Based Targets initiative, as of Sept. 30, 2025, up six percentage points from a year earlier. Companies with climate targets have demonstrated a track record of holding down emissions, versus those without.
Share of listed companies with climate targets for 2025 and beyond by target type
Source: MSCI ESG Research, data as of Sept. 30, 2025. Note that totals are cumulative. The share of corporate climate targets reported here reflects the relevant share of all companies in the MSCI ACWI IMI. Previous editions of this report show targets for roughly 95% of index constituents, hence the different shares of climate targets reported here.
Take a deeper dive into our Transition Finance Tracker
Investment in resilience is becoming unavoidable
The world’s listed companies could lose USD 1.3 trillion from physical climate hazards over the next year, reflecting both direct asset damage and lost revenue opportunities. Most corporate risk officers, investors and climate scientists say they expect average global temperatures to rise around 2.8°C (5°F) this century, exceeding the threshold for preventing the costliest warming.
Most likely global temperature increase by 2100 (% of respondents)
Source: MSCI Sustainability Institute Corporate Resilience Survey, September 2025, and Global Investor Survey, 2024. Survey of climate scientists by The Guardian newspaper.
Countries make strides in emissions trading
More than 30 countries have reached agreements to implement bilateral trading of emissions reductions under Article 6 of the Paris Agreement. Much work remains to realize the promise of Article 6 in scaling investments from both the public and private sectors.
Article 6.2 implementing agreements
Source: MSCI Carbon Markets, data as of Sept. 30, 2025.