Surge in Sustainable Investing: 88% of Investors Embrace Eco-Friendly Opportunities Across the Globe

Investor interest in sustainable investing remains robust and is on the rise, especially among younger generations. This trend is highlighted by the latest Sustainable Signals survey conducted by the Morgan Stanley Institute for Sustainable Investing, showcasing a significant shift towards integrating environmental and social factors into investment strategies.

Key Findings from the Sustainable Signals Survey

The Sustainable Signals survey collected feedback from 1,765 active individual investors with over $100,000 in investable assets across North America, Europe, and Asia Pacific (APAC). Conducted between February and March 2025, the results revealed that:

• 88% of global investors are interested in sustainable investing.
• Interest is particularly high among Gen Z and Millennial investors, with 99% and 97% respectively indicating a desire to align investments with sustainability goals.

Insights from Jessica Alsford

Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer and Chair of the Institute for Sustainable Investing, stated, “Our survey illustrates that investors across various demographics believe that investments can yield both positive real-world outcomes and competitive market-rate returns. Younger investors are particularly inclined to increase their portfolio allocations to sustainable options and consider a broader range of environmental and social issues in their investment decisions.”

Future Trends in Sustainable Investment

The survey also highlighted that:

• 59% of investors plan to increase their allocation to sustainable investments within the next year.
• The primary motivation for this shift is the increased confidence in the performance of sustainable assets, with 24% believing these investments can match or outperform traditional assets.
• In contrast, 31% of investors intend to maintain their current allocations, with diversification being a primary concern.

Sector Preferences for Sustainable Investments

Investors identified renewable energy and energy efficiency as top priorities, with over 80% viewing the energy transition as a major investment opportunity. Notable regional preferences include:

• North America: A focus on healthcare affordability and innovation.
• Europe and APAC: Emphasis on investments in battery storage, energy infrastructure, regenerative agriculture, and sustainable land use.

The Growing Importance of Sustainability in Financial Services

Financial advisors and investment platforms that offer sustainable options are likely to attract more clients, particularly from younger demographics. The survey indicated that nearly 80% of respondents prefer providers based on their sustainability offerings, with this figure rising to 96% for Gen Z and 92% for Millennials.

This trend underscores the necessity for financial services firms to adapt their offerings to meet the increasing demand for investments that prioritize environmental and social impact.

Conclusion

Since its inception in 2015, the Sustainable Signals series has provided valuable insights into how both individual and institutional investors perceive the evolving landscape of sustainable investing. As younger generations gain more financial power, the focus on sustainability in investment choices is expected to grow, shaping the future of the investment industry.

For more information on sustainable investing strategies, visit our sustainable investing page.