Financial performance and risk management are the key drivers of asset owners’ resilient commitment to sustainable investment, according to a global survey, but fiduciary duty is increasingly influential.
FTSE Russell’s latest annual survey found that risk-adjusted performance (56%) and long-term investment risk (54%) were the key motivations for asset owners implementing sustainable investment strategies. But 42% also cited fiduciary duty, a significant increase from 14% last year.
UK Pensions Minister Torsten Bell confirmed this week the introduction of statutory guidance on fiduciary duties to help pension scheme trustees to interpret their responsibilities, “including what we mean by systemic risks and standards of living”.
The index provider’s 2025 survey – completed by 415 private and public pension funds, insurance firms, foundations and family offices across 24 countries – found that the proportion of asset owners implementing sustainable investment strategies (73%) was consistent with recent years.
“While [geo-political] headwinds have resulted in the volumes of capital flowing into sustainable investment funds levelling off, interest is holding steady at a high level among investors,” said Stephanie Maier, Global Head of Sustainable, FTSE Russell.
“What’s shifting are investors’ motivations for pursuing sustainable investment and, to some extent, how they put those views into practice. Pragmatism is winning out over principles.”
A higher share of respondents (85%) said the investment impact posed by climate risk was a major concern than in 2024 (76%). Other areas of concern included diversity and inclusion, transition risk and biodiversity.
Four in five asset owners said they were incorporating sustainability and / or climate considerations or using sustainability indices in strategic asset allocations. On average, survey participants applied sustainability considerations to around 41% of their overall portfolios.
One in four asset owners said they were considering implementing new sustainable investment strategies.
