Sustainable investing momentum slows but commitment holds, Morgan Stanley survey finds
The headline figure signals continued momentum, but the details tell a more cautious story. Roughly 30 per cent of respondents anticipate increasing their sustainable allocations by more than five percentage points over the next two years – down sharply from two-thirds in 2025.
Those expecting growth of more than 10 percentage points have fallen to approximately two to four per cent, compared to around one-fifth of respondents the prior year.
“Our annual survey of institutional investors indicates that a majority expect to increase sustainable investment allocations in the coming years, recognizing growth opportunities and the rising materiality of sustainability-related risks,” said Jessica Alsford, Chief Sustainability Officer and Chair of the Institute for Sustainable Investing at Morgan Stanley. “In 2026, a consistent picture has emerged across our Sustainable Signals series – with individuals, corporates and institutional investors all showing high levels of continued commitment to sustainability, yet at a more measured pace and with a sharper focus on managing risk.”
Data gaps rise as the top concern
The survey paints a nuanced picture of how institutional sentiment is shifting. Data availability and consistency has emerged as the field’s most pressing challenge, cited as a very significant concern by 64 per cent of respondents – up from 47 per cent in 2025.
For Canadian advisors and wealth managers attuned to the growing ESG data debate on wealthprofessional.ca this finding will resonate: unreliable or incomplete data continues to undermine confidence in sustainable investment decision-making globally.
