Sustainability remains a priority for individual investors: Morgan Stanley

Interest in sustainable investing remains strong and consistent among individual investors globally, according to the latest Sustainable Signals report from the Morgan Stanley Institute for Sustainable Investing. The findings are based on a survey conducted between February and March 2025, covering 1,765 active investors across North America, Europe, and Asia-Pacific, each with over $100,000 in investable assets.

A significant majority—88% of investors—expressed interest in sustainable investing, with enthusiasm highest among younger generations: 99% of Gen Z and 97% of Millennial respondents showed interest in sustainability-focused investments. Nearly two-thirds (64%) of all investors reported increased interest in the past year.

Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer and Chair of the Institute for Sustainable Investing, noted: “Our Sustainable Signals survey shows that investors across demographic groups and regions continue to believe that investments can achieve both positive real-world outcomes and competitive market-rate returns.”

According to the report, 59% of investors plan to increase their allocation to sustainable investments over the next 12 months, driven primarily by growing confidence in the financial performance of these assets. A further 31% plan to maintain current levels, citing diversification as a key rationale.

The survey also found strong investor support for the global energy transition. Renewable energy and energy efficiency were cited as leading priorities across all regions, with over 80% viewing the energy transition as a financial opportunity. However, regional differences emerged: North American investors prioritised healthcare affordability and innovation, while European and Asia-Pacific respondents placed greater emphasis on energy storage, battery technologies, and regenerative agriculture.

Financial advice continues to play a pivotal role, with 78% of investors likely to select financial advisors or platforms based on their sustainable investing offerings. This trend is especially pronounced among Gen Z (96%) and Millennial (92%) investors, pointing to opportunities for the financial services industry to evolve alongside shifting generational values.

Launched in 2015, the Sustainable Signals series tracks investor sentiment and behaviour in the sustainable finance space. The latest findings indicate a continued alignment of investor values with environmental and social concerns, especially among younger cohorts expected to shape future market dynamics.

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