Nature Related Sustainable Finance in China 2025

Assets under management of sustainable funds (2024) FIGURE 7 Europe ($2,679) United States ($344 billion)China ($36 billion)Others ($105 billion) Japan ($22 billion) 84% 11%3% 1%1% Use of proceeds The allocation of funds in various countries aligns closely with their policy orientations. The field of climate change has become the most prominent nature-related topic, accounting for approximately 45% of the total scale of funds globally. Among these, US funds showed the most significant inclination towards climate change investments – 60%, which aligned closely with US policy directions as of 2024.28 In contrast, Europe’s investment landscape is more diversified, with broader allocations not only in climate change but also in biodiversity, resource utilization and other nature-related topics.29 Proportion of sustainability funds, globally (2023) FIGURE 8 China United States Europe Japan Global0%10%20%30%40%50%60%70%80%90%100% Climate change Resource security Healthy ecosystems Basic needs Human development46%23%11%11%9% 61%22%9%5%3% 40%25%12%12%11% 45%24%11%10%10% 55%16%5%24%Source: Morningstar Direct. Data as of December 2024. Notes: Categorization refers to Morningstar Sustainable Attributes framework and definitions for its Sustainable Investment and Employs Exclusions attributes. Source: Morningstar, CICC ESG Fund Research. 14