Despite rising geopolitical tensions and polarised public discourse, the vast majority of institutional investors are maintaining their commitment to sustainable investing, though many are becoming quieter about their efforts, according to BNP Paribas’ latest ESG Survey 2025.
According to ESG Today, the study polled 420 institutional investors—including asset owners, asset managers and private capital firms—across 29 countries, representing a combined $34tn in assets under management. Findings reveal that 87% of respondents have kept their ESG objectives unchanged, with only 3% scaling back due to recent global events. However, within that majority, nearly half admitted they are now less vocal about their ESG achievements and strategy.
Regional disparities were also noted. Investors in the Americas were more likely to have reduced their ESG efforts (7%) compared to 2% in EMEA and less than 1% in APAC, suggesting differing levels of political and societal pressure.
Looking ahead, investor sentiment remains largely optimistic. Some 85% of respondents believe the current pace of progress on sustainability will either continue (74%) or accelerate (11%) through to 2030. Still, 23% expect these developments to unfold with “less publicity,” signalling a growing tendency toward discretion in the ESG space.
The survey highlights an ongoing evolution in ESG strategies. More investors are adopting focused, thematic investment approaches, with 50% using this method—up from previous years. Thematic strategies now follow only negative screening (62%) and energy transition investments (52%) in popularity. BNP Paribas noted: “With growing investment opportunities in ranging from energy to biodiversity, to adaptation activities, to transition, we can expect investors to continue to focus on thematics for the rest of this decade, and to reduce exposure to generalist ESG strategies.”
In the short term, nearly half of investors plan to increase allocations to energy transition assets, adopt active ownership practices, and invest in low-carbon alternatives while exiting high-carbon assets. Notably, only 31% said they intend to integrate diversity, equity and inclusion (DEI) into investment policies, down significantly from 41% in 2023.
Longer-term ambitions are also shifting. The most cited objective is committing to net-zero targets by a specific date (40%), followed by portfolio alignment with Paris Agreement benchmarks (34%) and promoting social issues (33%).
Challenges remain. ESG data continues to be a pressing concern for 58% of investors. Other barriers include the tension between short-term returns and long-term ESG goals (56%), and greenwashing risks from investee firms or fund providers (54%).
To overcome these hurdles, nearly half of the respondents (48%) plan to increase spending on ESG data acquisition and analysis. Additionally, 38% will invest in impact reporting and disclosure, while 37% aim to grow their in-house ESG teams. The report also revealed a growing trend toward internal ESG research—48% of investors now create in-house benchmarks or scoring systems, and 54% rely on multiple data providers.
Scepticism towards ESG ratings remains widespread. A significant 70% of investors agreed that prioritising ESG scores may encourage firms to focus on optics rather than real-world impact.
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