Shining a spotlight: how investors are benefitting from the Green Economy Mark 

Since its launch in 2019, the Green Economy Mark cohort have raised nearly £18 billion [note1]. Today more than £77 billion of institutional capital is invested [note2] in the companies and funds with the Green Economy Mark, demonstrating powerful momentum behind sustainable investing.

The Green Economy Mark, which recognises issuers (both companies and funds) contributing to the green economy, has become a powerful enabler for those seeking access to capital that supports their sustainability-focused growth.  The Green Economy Mark also provides a vital signal for investors seeking to allocate capital towards issuers with demonstrable environmental impact.  

On 31 October 2025, renewable energy developer Cindrigo listed on the Main Market of the London Stock Exchange, becoming the latest company to join the Green Economy Mark cohort. This follows a strong year for the cohort, which raised more than £634 million in 2025.

London-listed companies and funds, on all segments of the Main Market and AIM, may be provided the Green Economy Mark if at least half of their revenues are generated from products and services that contribute to the global green economy.  For pre-revenue issuers, they must demonstrate that 100% of their business activity is derived from environmental products and services to be classified as green.

The Green Economy Mark draws upon the LSEG Green Revenues Classification System (GRCS), which identifies environmental products and services across the whole equity value chain, covering 10 sectors, 64 subsectors and 133 microsectors. Each microsector is assessed against seven environmental objectives: 

• Climate change mitigation
• Climate change adaptation
• Pollution prevention and control
• Protection of healthy ecosystems
• Sustainable use and protection of water and marine resources
• Transition to a circular economy, waste prevention and recycling
• Sustainable and efficient agriculture

These microsectors are allocated to one of three tiers based on their overall environmental impact across the environmental objectives. 

• Tier 1 comprises activities with clear and significant environmental benefits (e.g., solar energy generation).
• Tier 2 includes activities that provide more limited but still net positive environmental benefits (e.g., water utilities). 
• Tier 3 covers activities that may have some environmental benefits but are assessed as overall net neutral or negative (e.g., nuclear energy generation). 

To meet the criteria of the Green Economy Mark, currently only Tier 1 and Tier 2 microsectors are taken into account.

LSEG data shows that, over the past decade, the market capitalisation of the global green economy has expanded at a compound annual rate of 15% – faster than any other sector apart from Technology. It is now valued at US$7.9 trillion globally (as of Q1 2025), equivalent to 8.6% of global listed equity markets. If it was a standalone sector, the green economy would be the world’s fourth largest, after Technology, Industrials and Healthcare. 

Not only is the green economy growing fast, but that growth is likely to accelerate. According to LSEG research, meeting global climate goals will require investment of between US$109 trillion and US$275 trillion by 2050. This represents an enormous demand for capital and an important source of investment returns for the providers of that funding. 

This growth has not gone unnoticed by investors. In debt markets, for example, the total of outstanding green bonds exceeded US$3 trillion for the first time at the end of the third quarter of 2025. 

The green economy is broader than many market participants might initially assume. As well as obvious pureplay sub-sectors such as renewable energy or electric vehicles, the GRCS encompasses a broad range of activities. For example, Energy Management and Efficiency, the green economy’s largest sector, includes electrical equipment, construction materials and infrastructure construction. 

The environmental outcomes of the sub-sectors are also wide ranging, from products which can help reduce energy consumption in transport, to solutions that enable the reduction or prevention of pollution, and the manufacture of materials that improve the recyclability of products.  

By using the GRCS to identify the green revenues of individual companies and funds, the Green Economy Mark helps identify companies whose environmental credentials may not be immediately obvious. For example: 

• Raspberry Pi (provided the Green Economy Mark in 2024) manufactures high performance, low-cost computing products, which are around 90% more energy efficient than traditional PCs. [note3]
• Synthomer (provided the Green Economy Mark in 2021) is a specialty chemicals company with a large proportion of its revenues derived from products that deliver defined sustainability benefits. Approximately 80% of its products consist of water‑based dispersions, which significantly reduce harmful emissions compared with solvent‑based alternatives.  [note4]
• Persimmon (provided the Green Economy Mark in 2022) has advanced the development of net zero ready homes, helping to reduce carbon emissions and support the transition to a low carbon future. Its focus on building energy efficient housing and integrating low carbon design features demonstrates strong sustainability credentials within the building and property sector. [note5]

Funds investing in GRCS-aligned activities are also eligible for the Green Economy Mark and account for c.25% of the cohort, as of June 2025. For example, Impax Asset Management holds the Green Economy Mark at both an asset manager and fund level; its listed flagship investment trust, Impax Environmental Markets Plc, has a market capitalisation of c. £760 million. Similarly, Foresight Group, an ESG-focused infrastructure and private equity asset manager, obtained the Green Economy Mark at its £277 million IPO in 2021; its listed investment trusts - Foresight Solar Fund Limited and Foresight Environmental Infrastructure Limited - also both hold the Green Economy Mark.

One of the key attractions of the Green Economy Mark for investors is the breadth and diversity of issuers it recognises. Industrials, Financials (including investment funds) and Energy collectively account for 63% of the cohort by number. Technology and Real Estate combined comprise 15% of the cohort, by number.[note6]

Green Economy Mark companies and funds are also diversified by geography. As of June 2025, 77% were UK based, while 23%, (which account for 60% of its market capitalisation), were international, a testament to London’s global reach as a hub for green finance. [note7]

They are also diversified by size: 61 are listed on the Main Market, and 40 on AIM. [note8] This breadth creates a truly international investable universe of green economy equities, offering investors broad exposure across sectors rather than a concentrated focus on a narrow subset.

The Green Economy Mark is underpinned by a data driven methodology, that reinforces the authenticity of an issuer’s green credentials and the tangible environmental impact it delivers. 

The underlying LSEG Green Revenues Classification System is transparent, rules based and independent from the Green Economy Mark assessment process. The Green Revenues of the Green Economy Mark cohort are reviewed periodically to confirm that issuers continue to generate at least 50% of their revenues from environmental products and services in line with the classification.  This provides investors with confidence that the cohort remains aligned with the green economy, while offering issuers continued credibility and market recognition as their businesses evolve.

The transition to a sustainable global economy will require unprecedented levels of investment, capital that drives green growth, support innovation, creates jobs and delivers competitive returns with purpose. The Green Economy Mark serves as a guide for investors seeking to deploy that capital, reinforcing the London Stock Exchange’s role as a convenor in the green economy. With a growing proportion of market participants seeking to deploy capital into sustainable investments, the Green Economy Mark can be used to identify a universe of green economy equities and funds.