Investor Interest in Sustainable Investing Rises to 92% While Allocations Slide to 31%
92% of individual investors express interest in sustainable investing in 2026, up from 88% in 2025, while average portfolio allocations slipped to 31% from 33%. 64% plan to increase their sustainable holdings driven by confidence in performance, with the same share citing private markets as key opportunities.
1. Global Investor Interest
A Morgan Stanley Institute survey polled 2,250 active individual investors across North America, Europe and APAC between February and March 2026, finding that 92% are very or somewhat interested in sustainable investing, up from 88% in 2025. For the first time, the poll included the Middle East and North Africa, where over 90% of respondents share similar levels of interest.
2. Allocation Trends and Performance Drivers
Despite rising interest, the average sustainable allocation fell to 31% of portfolios in 2026 from 33% in 2025. Among investors, 64% plan to boost their sustainable holdings over the next year, citing confidence in market-rate returns and real-world impact, while 5% intend to reduce allocations due to weaker performance.
3. Private Market Opportunities
Sixty-four percent of respondents view private market investments as offering greater sustainable opportunities than public assets, driven by the potential for portfolio diversification, exposure to innovative technologies and high-growth ventures. Those with over 30% of their portfolio in sustainable assets are most active in private market commitments, with 55% currently invested.
4. Barriers and Advisor Influence
Investors identify greenwashing (32%), lack of data transparency (30%) and limited knowledge (27%) as the top barriers to sustainable investing, up from 21% rating barriers as very significant in 2025. Seventy-nine percent of investors say they would choose a financial advisor or platform based on sustainable investing offerings, underscoring its growing role in advisor selection.