Sustainable investment allocations set for slower growth, Morgan Stanley survey shows
MS•More than 80% of institutional investors expect sustainable investment allocations to rise within two years, but about 30% expect increases exceeding five percentage points, down from two-thirds in 2025.
1. Survey findings
Morgan Stanley's October 2026 survey found that more than 80% of institutional investors expect sustainable investment allocations to rise within two years. About 30% expect increases exceeding five percentage points, down from two-thirds in 2025. Data availability and consistency were the biggest challenge, cited as a significant concern by 64%, compared with 47% in 2025; nearly 90% said assessing physical climate impacts on assets was difficult, up from 66%.
2. Customized mandates
Customized mandates account for 41% of asset owners' externally managed sustainable assets, and 86% expect that share to rise within two years.
