The green economy—the business lines of global listed companies that generate revenue from climate solutions — now boasts a record high market value of $10 trillion.The increase occurred as revenue tied to environmental products and services climbed to $5.5 trillion last year, expanding at its fastest pace since 2022, according to a report published Wednesday by London Stock Exchange Group.Investors have rewarded that growth: Companies deriving over 20% of their income from green activities have been outperforming the broader equity market, LSEG said. The S&P Global Clean Energy Transition Index has surged more than 80% since the end of 2024, more than double the return of the S&P 500.Despite rising geopolitical tensions and a retreat from climate priorities in some major economies, led by the US, green industries have proved remarkably resilient. That’s partly because the energy transition is entering a new phase driven as much by security and economic competitiveness as by decarbonization, according to LSEG.For investors who have soured on green stocks, the industry’s recent growth should create “an urgency to have another look” and reassess their exposure, Jaakko Kooroshy, global head of sustainable investment research at LSEG, said in an interview.LSEG defines the green economy as the proportion of companies’ revenues generated from environmental solutions, ranging from renewable energy and clean water to energy efficiency and recycling. The firm assessed the revenue exposure to green business activities of more than 21,000 companies globally.Revenue growth was broad-based over the past year, with 99 of 133 categories of green products and services posting gains.