A recent survey from Morgan Stanley bodes well for the future of sustainable investment. Like other reports and surveys we’ve covered on the blog recently, this survey indicates that interest in sustainable investment is increasing rather than decreasing. The survey’s authors write:
“Headline numbers around interest in sustainable investing remain at very high levels. Globally, 92% of respondents say they are very or somewhat interested, up four points from 2025. European investors report the greatest increase, particularly in the very interested group which is up 11 points year-over-year. By generation, both Gen Z and Millennials report slightly lower levels of interest (down 2-3 points from 2025, from very high levels). However, this year’s sample contained more Gen Z respondents* who still have higher interest levels compared to older generations, offsetting this decline in the overall numbers.”
These survey results reinforce that sustainability is still alive and well. What’s more, these trends hold across both North America and Europe. While European investors are marginally more interested in sustainability, 88% investors in North America reported being very or somewhat interested. The main drivers behind this interest may not be what many expect. While we’re used to couching sustainable investing in a risk management context, investors are looking at it from the perspective of increasing gains, not mitigating losses.
45% of investors cited the top driver of their interest in sustainable investing as “want[ing] to support positive real-world outcomes alongside a market-rate financial return.” An additional 40% cited “believ[ing] that sustainable investments could offer stronger financial returns than traditional investments.” Only 2% cited ESG risk reduction as their primary reason. So investors aren’t just interested in ESG as a risk management tool, but are far more interested in how it drives returns.
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