The FTSE Russell Sustainable Investment Asset Owner Survey 2025 indicates Asia-Pacific investors are leading Europe and North America in sustainability integration.
The survey of 415 institutional investors across 24 countries found 79 per cent of Asia-Pacific respondents are implementing sustainability considerations. The statistics show 74 per cent in Europe and 71 per cent in North America. The region accounted for 31 per cent of participants, slightly ahead of North America at 29 per cent.
Globally, 85 per cent of asset owners place themselves in the “most concerned” category on climate risk, up from 76 per cent a year earlier.
“Overall, 80 per cent of respondents are incorporating sustainability or climate considerations into strategic asset allocation,” the report states. A further 73 per cent are implementing sustainable investment products, and the motivation is commercial. “Many asset owners are focusing on strategies that can enhance returns or reduce risk, rather than pursuing sustainability objectives for their own sake.”
Financial performance (56 per cent) and risk management (54 per cent) are the leading drivers.
Asia has been gearing towards market depth and policy, with countries starting to implement reforms: China continues large-scale clean energy investment. Japan’s Green Transformation Strategy targets more than JPY150 trillion towards carbon neutrality by 2050. Singapore and Hong Kong have introduced new disclosure regimes. Regional green bond issuance reached US$180 billion in 2025, up 29 per cent year-on-year.
China issued its first sovereign green bond listed in London. Japan has raised US$3.6 billion through sovereign transition bonds.
Europe’s market appears to be levelling off, with two-thirds of funds already classified under EU sustainable rules. Adoption stands at 67 per cent amid political debate over ESG in the United States. Many institutional investors are converging on one point despite differences in pace: sustainability is being absorbed into core portfolio construction, framed as risk control and return discipline rather than positioning.