Lee Clements
Key Findings
- Eighty-four percent of asset owners are incorporating SI, up from 73% in 2025 and close to the previous high in 2022
- They are applying them to a larger proportion of assets, 55% in 2026, up from 41% in 2025
- Governance, tax and shareholder rights have risen sharply in 2026 to be the most cited priority issue at 32%, whilst climate (both transition and physical issues) were also seen as key
- Concerns around financial performance, ESG data and greenwashing are falling as barriers to SI adoption, whilst costs and corporate reporting concerns are rising
Although sustainable investment has faced headwinds in recent years, findings from FTSE Russell’s ninth annual Sustainable Investment Asset Owner Survey suggest adoption is moving back toward previous highs, while sustainability considerations continue to become more integrated into the day-to-day investment process. Drawing on input from more than 400 asset owners across 24 countries, this year’s survey provides a global view of how sustainable investment priorities and practices are evolving.
Sustainable investment moves back toward previous highs
The share of asset owners incorporating sustainability considerations into their investment strategies rose notably in 2026. Eighty-four percent of respondents now take sustainability considerations into account in some form, up from 73% in 2025 and just two percentage points below the survey’s previous high of 86% in 2022. A further 15% are currently evaluating whether to incorporate sustainability considerations into their investment strategies.
The dip in the percentage of investors taking sustainability considerations into account has reversed
Source: FTSE Russell Sustainable Asset Owner Survey 2026. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Percentage of asset owners implementing sustainability considerations in their investment strategy.
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| 76.00% | 86.00% | 74.30% | 70.80% | 73% | 84% |
Sustainability considerations are also extending across a larger share of portfolios. In 2026, 51% of surveyed asset owners apply sustainability considerations to a majority of their overall assets, up notably from 26% last year. 11% now apply them across their entire portfolios.
Integration of sustainability factors across portfolios is growing deeper
Source: FTSE Russell Sustainable Asset Owner Survey 2026. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Percentage of the organisation’s overall active and passive portfolio currently implementing sustainability considerations
| 2025 | 2026 | |
|---|---|---|
| Average | 41% | 55% |
| 50% or more | 26% | 51% |
| 80% or more | 0% | 23% |
| 100% | 0% | 11% |
The findings indicate that surveyed asset owners are applying sustainability consideration across a broader share of their mainstream portfolios. The evolution is particularly evident in listed equities, the most mature asset class for sustainable investment implementation: The proportion of surveyed asset owners applying sustainability considerations to listed equities rose from 59% in 2025 to 71% this year.
Governance and physical climate risk move up the agenda
Governance, tax and shareholder rights featured more prominently in asset owners’ sustainability agendas in 2026, cited as a priority by 32% of respondents, compared with 18% last year. The survey points to a heightened focus on the quality of governance and shareholder rights against a backdrop of market uncertainty, geopolitical tensions and the artificial intelligence revolution.
Governance and physical climate are seen as large and growing risks by asset owners
Source: FTSE Russell Sustainable Asset Owner Survey 2026. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Sustainability issues considered a priority focus; new categories for 2026 (Health, Tech and Food) all have a zero for 2025; categories which have been amalgamated have the average figures of the previous categories for 2025
| 2025 | 2026 | |
|---|---|---|
| Governance, tax & shareholder rights | 18% | 32% |
| Climate transition | 26% | 31% |
| Social, human rights & human capital | 17% | 29% |
| Climate physical & adaptation risk | 19% | 26% |
| Diversity and inclusion | 28% | 26% |
| Health & Healthcare related risk | - | 25% |
| Water, pollution, resource & other | 14% | 24% |
| Tech & AI related risk | - | 24% |
| Biodiversity & natural capital | 20% | 22% |
| Ethical & faith based | 18% | 20% |
| Food related risk | - | 19% |
Climate risks also moved up the agenda. Amid continued disruption in global energy markets and the increasingly visible effects associated with rising temperatures, physical climate and adaptation risk was identified as a priority by 26% of asset owners, up from 19% in 2025. Concern about the investment impact of climate risk has also intensified: one-quarter of respondents rated their concern at 10 out of 10, compared with 11% last year.
Corporate reporting and costs come into sharper focus
Asset owners are increasingly focused on the investment case for sustainable investment. Nearly half (47%) of respondents say their organisation pursues sustainable investment to improve portfolio returns, up from 41% in 2025. At the same time, the share citing concerns about financial performance as a barrier to sustainable investment fell from 27% to 19%.
Cost is also becoming a more prominent consideration. A quarter of asset owners now identify costs as a barrier to greater sustainable investment adoption, compared with 17% last year. Meanwhile, some of the concerns that have featured prominently in previous surveys have receded: ESG data availability fell from 36% to 25% as a cited barrier, while concerns about greenwashing dropped from 37% to 22%. The quality or consistency of corporate reporting and disclosures emerged as the most cited barrier to further adoption.
Greenwashing, data and performance barriers falling, while reporting, fiduciary and cost concerns remain large and/or rising
Source: FTSE Russell Sustainable Asset Owner Survey 2026. Past performance is not a guide to future returns. Please see the end for important legal disclosures.
Perceived barriers to increased sustainable investment adoption across asset classes (percentage of asset owners)
| 2025 | 2026 | |
|---|---|---|
| Concerns over the potential reputational risk of ‘greenwashing’ | 37% | 22% |
| Concerns about availability of ESG data and the use of estimated data | 36% | 25% |
| Concerns about financial performance | 27% | 19% |
| Concern about the quality or consistency of corporate reporting and disclosures | 31% | 33% |
| Regulatory or fiduciary constraints | 28% | 27% |
| Costs | 17% | 25% |
Overall, this year’s findings suggest sustainability considerations are becoming more deeply embedded in investment practice as asset owners weigh their implications for risk and returns. Explore the full 2026 Sustainable Investment Asset Owner Survey report to learn more about how asset owners’ priorities and approaches are evolving.
About the 2026 survey
We received responses from 402 asset owners from 24 countries, in three regions: Asia Pacific (30%), EMEA (40%) and North America (30%). Respondents were all senior members of sustainability, investment or management teams. The respondents were from a range of asset owner types: 45% pension funds, 15% insurance companies, 15% government-related and sovereign wealth funds, 18% endowments, foundations and family offices, and 7% other. Around 22% of respondents have assets under management (AUM) of US$100 billion or more, 48% have AUM of US$1 billion to US$100 billion, and 30% have AUM of less than US$1 billion.
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