The eighth annual sustainable investment (SI) asset owner survey from FTSE Russell shows a growing concern over the risks associated with climate change.

Sustainability considerations remain firmly embedded in investment strategies, with 73 per cent of asset owners implementing sustainable investment approaches to their portfolios, a figure that has remained largely unchanged since 2023.

However, asset owners are increasingly concerned with the investment impact posed by climate risk, with 85 per cent of respondents ranking this as a major concern, up from 76 per cent last year. While climate remains the primary focus, other sustainability factors such as diversity and inclusion and human rights are also ranked highly.

Stephanie Maier, global head of sustainable, FTSE Russell, said: “Global asset owners’ commitment to integrating sustainability considerations remains steady. 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.”

The survey, which gathered insights from 415 asset owners across 24 countries, also shows that financial performance (56 per cent) and risk management (54 per cent) have become the leading motivations for sustainable investment. More than half of respondents believe these strategies help mitigate long-term risk and deliver better risk-adjusted returns, while fiduciary duty is increasingly cited as a driver. In contrast, societal good is now a secondary consideration for many asset owners (37 per cent).

While one in four asset owners are still evaluating whether to implement sustainable investment strategies, barriers such as greenwashing concerns and the availability and accuracy of ESG data were listed as issues to adoption.

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