A growing majority of companies worldwide are viewing sustainability as a strategic opportunity rather than just a risk to manage, according to the latest Sustainable Signals report from the Morgan Stanley Institute for Sustainable Investing.
The survey, conducted between March and April 2025, gathered insights from over 300 public and private companies across North America, Europe, Asia-Pacific (APAC), as well as newly included regions such as the Middle East and North Africa (MENA) and Latin America (LATAM). It found that 88% of respondents regard sustainability as either primarily (53%) or partly (35%) a driver of long-term value creation—an increase of three percentage points from the previous year.
In contrast, only 12% of businesses view sustainability primarily through a risk lens, down from 15% in 2024. A large majority (83%) also indicated that they are able to quantify returns from sustainability investments in areas such as new projects and risk mitigation, in line with how they evaluate other business initiatives.
“The data suggest that sustainability remains central to long-term value creation,” said Jessica Alsford, Chief Sustainability Officer and Chair of the Morgan Stanley Institute for Sustainable Investing. “Companies around the world report an alignment between corporate strategies and sustainability priorities as they seek to build resilient, future-ready businesses.”
The report also highlighted the increasing operational impact of climate-related events. Over half of the companies surveyed reported disruptions in the past year due to physical climate events, with APAC firms most affected (73%). Extreme heat (55%) and severe storms (53%) were cited as the most common challenges, leading to higher costs, workforce disruption, and revenue losses.
Looking ahead, more than two-thirds of companies expect further negative impacts from climate change over the next five years, but more than 80% feel prepared to increase their resilience.
Other key findings include:
- Sustainability progress: 65% of companies said they are “meeting” or “exceeding” their sustainability goals, up from 59% in 2024.
- Barriers: High investment costs and political or macroeconomic uncertainty were cited as the top obstacles to advancing sustainability efforts.
- Enablers: Technological innovation was the most cited global enabler (33%), while in North America, favourable economic conditions were considered most important (32%).
While MENA and LATAM data were not included in the global averages to maintain year-on-year comparability, responses from these regions echoed global patterns. MENA reported the highest share of companies (86%) viewing sustainability as a value opportunity, and 67% of LATAM firms expressed a similar view despite widespread expectations of climate-related risks.
The findings reaffirm that for a majority of global companies, sustainability is not just a regulatory or reputational concern, but an integral part of business strategy and long-term value creation.
