Institutional Investors Predict Sustainable Asset Growth
A survey of 900 global investors projects increased allocations toward sustainable mandates through 2028.
Updated on Oct. 23, 2026 in Investing
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Between August and October 2026, a survey of 900 institutional investors across North America, Europe, and Asia Pacific revealed that over 80% expect sustainable allocations to grow over the next two years. Investors are increasingly motivated by growth opportunities and the rising materiality of sustainability risks.
Why it matters
The findings suggest that sustainability has become a core component of portfolio risk management rather than a niche strategy. With 90% of respondents viewing these options as a differentiator, firms are increasingly leveraging ESG mandates to compete for business.
A survey of 900 institutional investors found that 66% now include responsible AI in their strategies, while 59% focus on climate adaptation and resilience. Currently, 41% of externally managed sustainable assets are held in customized mandates.
The players
Morgan Stanley Institute for Sustainable Investing
This research arm produces analysis and insights focused on the intersection of capital markets and global sustainability challenges.
The details
Investors identified data availability and consistency as the primary hurdle, with 64% of respondents labeling these issues a significant concern. Most participants anticipate that physical climate risks will begin to materially influence global asset prices within the next five years.
Timeline
The Sustainable Signals research series launched in 2015.
2025 serves as the baseline year for current comparative trends.
Data collection for the survey occurred from August to October 2026.
Growth in sustainable allocations is projected over the next two years.
Climate risks are expected to affect asset prices over the next five years.
Market Dynamics
This data update follows the trajectory set by the Sustainable Signals research series, which has tracked global sustainable investment patterns since 2015. It reflects a broader shift toward integrating long-term climate risk into institutional portfolio management.
Individual and institutional investors should expect a larger share of assets to move into customized mandates and separately managed accounts in the coming years. This shift requires closer attention to the quality of sustainability data and AI-driven risk metrics used in firm disclosures.
The takeaway
Sustainable investing is maturing into a standard risk-mitigation tool for large-scale asset managers. Investors should prioritize firms that demonstrate clear, consistent data reporting to navigate the growing focus on climate resilience.
Further reading
For broader trends in global capital allocation, visit the Investing section.
Source note: This article includes information reported by Markets Media.
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