Accelerating the growth of the electric vehicle market requires capital to fund manufacturing, infrastructure and innovation. However, the shift to EVs is not just about reducing pollution. It is a seismic economic opportunity — not just for auto and truck manufacturers and other industry players, but also for banks. Investment in electric vehicles boomed during the past two years — $42 billion in 2023, up from $18 billion the previous year.Capital to not only fund the upfront costs of growing EV manufacturing capacity even more but also support EV infrastructure build-out and vehicle and battery technology advancement. Major corporate fleet operators will also need significant capital to transition their fleets to clean cars and trucks and build the infrastructure to support them.
Sustainable finance is a crucial aspect of addressing economic, social, and environmental challenges, providing benefits to businesses, investors, and society. It aims to create a more inclusive, equitable, and environmentally conscious global economy by recognizing financial success, positive societal and environmental results, and integrating sustainability into financial decision-making. Sustainable finance involves three facets: environmental, social, and governance.