Saturday, December 20, 2025

FTSE Russell global survey: Asset owners concern about climate change risk grows

Research from FTSE Russell reveals 85% of asset owners identify climate change as a major concern, with sustainable investment becoming more central to fiduciary responsibility

FTSE Russell, the global index provider, recently published the findings from its eighth annual asset owner survey, analysing how sustainable investment (SI) is perceived, considered and used by asset owners across the world.  

Sustainability considerations remain firmly embedded in investment strategies, with 73% of asset owners implementing sustainable investment approaches to their portfolios, a figure that has remained largely unchanged since 2023. However, asset owners are increasingly concerned with the investment impact posed by climate risk, with 85% of respondents ranking this as a major concern, up from 76% last year. While climate remains the primary focus, other sustainability factors such as diversity and inclusion and human rights are also ranked highly.

Steady commitment to sustainability
Stephanie Maier, Global Head of Sustainable, FTSE Russell, said: “Global asset owners’ commitment to integrating sustainability considerations remains steady. Against a backdrop of geopolitical headwinds, investor concerns regarding climate and broader sustainability risks continue to intensify and the focus on financial performance remains a central priority. This shift signals that sustainable investment is becoming a core component of fiduciary responsibility.”

The survey, which gathered insights from 415 asset owners across 24 countries, also shows that financial performance (56%) and risk management (54%) have become the leading motivations for sustainable investment. More than half of respondents believe these strategies help mitigate long-term risk and deliver better risk-adjusted returns, while fiduciary duty (42% in 2025 compared to 14% in 2024) is increasingly cited as a driver. In contrast, societal good is now a secondary consideration for many asset owners (37%).

Implementation approaches remain diverse. Thematic investing (60%) and ESG integration (61%) continue to be the most popular strategies, while engagement is gaining traction as investors seek to support transition towards low-carbon business models rather than divest from carbon-intensive assets.

While one in four (23%) asset owners are still evaluating whether to implement sustainable investment strategies, barriers such as greenwashing concerns and the availability and accuracy of ESG data were listed as issues to adoption. In addition, 60% of respondents cited different disclosure requirements and taxonomies as challenges to meeting regulatory requirements, and 61% cited an inability to align portfolios or indices with the sustainable investment or climate requirements set out by regulators.

Further information
Download the full report here

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