Investor interest in sustainable investing remains high and continues to rise, particularly among younger generations, according to the latest Sustainable Signals survey by the Morgan Stanley Institute for Sustainable Investing.
The report highlights how environmental and social considerations are becoming increasingly influential in portfolio allocation decisions.
The survey gathered responses from 1,765 active individual investors with over $100,000 in investable assets across North America, Europe and Asia Pacific (APAC). Conducted between February and March 2025, the research found that 88% of global investors are interested in sustainable investing. Enthusiasm is especially pronounced among Gen Z and Millennial investors, with 99% and 97% respectively expressing interest in aligning their investments with sustainability goals.
Morgan Stanley chief sustainability officer and chair of the Institute for Sustainable Investing Jessica Alsford said, “Our Sustainable Signals survey shows that investors across demographic groups and regions continue to believe that investments can achieve both positive real-world outcomes and competitive market-rate returns. Younger investors plan to increase portfolio allocations to sustainable options at higher rates and prioritise a broader range of environmental and social issues when making investment decisions. This suggests that sustainability could become an even greater focus area for investors in the future as younger generations gain more financial influence.”
The report found that 59% of investors intend to increase their allocation to sustainable investments over the next year. The most cited reason for this was increased confidence in the performance of sustainable assets, with 24% believing these can match or outperform traditional investments. In contrast, 31% plan to maintain their current allocations, primarily citing diversification strategies.
In terms of sector preferences, renewable energy and energy efficiency were top priorities across all regions, with more than 80% of respondents viewing the energy transition as a significant investment opportunity. Regional differences also emerged: North American investors showed a stronger focus on healthcare affordability and innovation, while those in Europe and APAC favoured investments in battery storage, energy infrastructure, regenerative agriculture, and sustainable land use.
Advisors and investment platforms offering sustainable options are likely to gain favour, particularly among younger investors. Nearly 80% of all respondents said they are more likely to select providers based on their sustainability offerings, a figure that jumps to 96% for Gen Z and 92% for Millennials. This trend underlines the importance for financial services firms to adapt their offerings to meet growing demand for environmental and social impact.
Since its launch in 2015, the Sustainable Signals series has provided insights into how individual and institutional investors, as well as corporates, view the evolving landscape of sustainable investing.
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