The impact of climate change risks is increasing as a significant concern for global asset owners, according to a new survey from FTSE Russell.
The survey, which polled more than 400 asset owners across 24 countries, found 85 per cent said climate risk is a major concern for them, up from 76 per cent in 2024.
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About seven in 10 (73 per cent) investors said they’re still relying on sustainability considerations for their investment strategies, virtually unchanged since 2023. Sustainable investment decisions are increasing due to performance (56 per cent) and risk management (54 per cent) considerations from institutional investors, the survey noted.
Traditional financial considerations, including fiduciary duty (42 per cent) are overtaking societal good (37 per cent) as leading reasons for investors to consider sustainable investment efforts.
Only 23 per cent of respondents said they’re still evaluating whether there’s a fit for them to implement sustainable investment strategies. Investors pointed to disclosure requirements and taxonomies (60 per cent) and an inability to align portfolios or indices with the sustainable investment or climate requirements set out by regulators (61 per cent) as significant drawbacks against the sustainability cause.
The commitment of global asset owners to sustainability considerations is still steady, said Stephanie Maier, global head of sustainable at FTSE Russell, in a press release.
“Against a backdrop of geopolitical headwinds, investor concerns regarding climate and broader sustainability risks continue to intensify and the focus on financial performance remains a central priority. This shift signals that sustainable investment is becoming a core component of fiduciary responsibility.”
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