Sustainable investment adoption holds at 73% amidst rising climate concerns

Financial performance and risk management drove ESG adoption.

Seventy-three percent of asset owners incorporate sustainability considerations into their investment decisions, according to the FTSE Russell 8th Annual Sustainable Investment Asset Owner Survey 2025.

The survey comprised 415 respondents across 24 countries, with 31% from the Asia-Pacific region, 40% from EMEA, and 29% from North America.

Financial performance and risk management were cited as key motivations by 56% and 54% of investors, respectively; whilst Climate change was cited as a concern by 85% of asset owners.

Whilst climate risk emerged as the top priority, issues relating to diversity, inclusion and human capital are also gaining prominence. Sustainability or climate indices are incorporated into strategic asset allocation by 80% of participants.

The 73% implementation rate for sustainable investment products has remained steady despite market headwinds, the report noted.

One in four asset owners is evaluating the adoption of sustainable investment strategies, with greenwashing, ESG data quality and regulatory complexity cited as barriers to implementation.