• 85% of surveyed investors expect ESG assets under management to rise in the next two years
• Climate strategies seen as drivers of competitiveness and revenue, but data gaps persist
• AI and cybersecurity emerge as next major ESG themes

Nearly 85% of investors expect assets under management (AUM) linked to ESG to grow over the next two years, according to Bloomberg Intelligence’s latest ESG Investor Survey. Two-thirds anticipate similar growth for climate-focused AUM, suggesting sustained momentum despite ongoing political and market pushback.

Almost half of respondents indicated that more than 15% of their portfolios will be dedicated to ESG by 2027, with 44% expecting the same for climate products. The survey polled 252 investment professionals across North America, Europe, APAC, Central America, and South America, each with at least eight years of industry experience.

Eric Kane, Director of ESG Research at Bloomberg Intelligence, and Melanie Rua, Senior Associate Analyst, noted that investors see ESG as enhancing decision-making and risk-adjusted returns. “Our findings show that despite recent controversies, institutional investors continue to assign long-term value to ESG strategies,” they said.

RELATED ARTICLE: Bloomberg Survey Reveals Increasing Demand for ESG Data but Data Management Challenges Persist

Climate Strategies: Competitive Edge with Gaps in Data

Close to 90% of respondents said they assess the carbon footprint of their portfolios. However, nearly two-thirds pointed to gaps in climate data, particularly in scenario analysis, Scope 3 emissions, and physical risk assessment.

When evaluating energy-transition strategies, 71% of investors said they expect companies with strong transition plans to gain competitiveness and market share, while 59% foresee increased revenue potential.

AI and Cybersecurity Take Center Stage

Looking ahead, more than 45% of investors identified AI as the next major ESG theme, followed by cybersecurity at 39% and water at 25%. Respondents also flagged the “risks and opportunities of AI in ESG” as the top area of focus for 2025.

The survey, conducted by Attest between March 26 and May 7, 2025, highlights that while ESG remains under scrutiny, investor allocations and expectations for climate and technology-driven themes are accelerating.

Read the BI survey: Investors see AUM growth for ESG, climate.

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