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• 87% of institutional investors maintain ESG objectives, with 84% anticipating sustainability progress will accelerate through 2030.
• 59% are pivoting to thematic ESG investing, targeting energy transition, low-carbon assets, and active ownership.
• Private capital firms are emerging leaders, intensifying focus on social issues, just transition, and portfolio decarbonisation.

Institutional investors remain firmly committed to sustainable investing—but with sharper focus and strategic intent. According to BNP Paribas’ 2025 ESG Survey, 87% of institutional investors say their sustainability goals remain unchanged, and 84% expect the pace of ESG progress to continue or accelerate by 2030, despite a more cautious communication approach.

“The vast majority of institutional investors remain committed to sustainable investing, while moving towards more specific ESG-related investment themes to ensure both return and impact.”

Conducted across 29 countries, the fifth biennial ESG study—“Industry Survey: Institutional Investors Leading the Way”—draws insights from 420 respondents representing USD 33.8 trillion in AUM, spanning asset owners, asset managers, and private capital firms.

Precision Over Generalisation

The ESG strategy is evolving. 85% of investors now integrate sustainability criteria into their investment decisions, with 59% adopting thematic investing, targeting high-impact sectors and regions.

Top ESG priorities for the next two years include:

• 49% increasing allocation to energy transition assets
• 47% using active ownership to drive internal ESG goals
• 46% investing in low-carbon assets and divesting from carbon-intensive holdings

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Advanced ESG Investors Take the Lead

A distinct group—19% identified as “pacesetters”—are pushing boundaries in ESG investing. These advanced players prioritize:

• Portfolio decarbonisation (95%)
• Social impact (94%)
• Biodiversity (86%)
• Just transition (68%)

“Investors are increasingly allocating to specific themes or regions to help identify opportunities for impact and alpha, and focus their expertise into generating better outcomes.”

Rise of Private Capital in ESG

Private capital managers are making strategic ESG plays.

• 51% will rely on active ownership to achieve ESG goals
• 76% prioritise social issues
• 63% support just transition investments

“Private capital managers believe ESG investing can add value, improve alignment with asset owners, satisfy stakeholders and benefit from decarbonization themes.”

Banking & Data: Key Enablers

In choosing banking partners, institutional investors value:

• ESG brand reputation (51%)
• Product expertise (40%)
• Long-term client commitment and shared values (33% each)

Additionally, 48% plan to boost their ESG budgets, specifically for enhanced data acquisition and analysis—recognising reliable ESG data as crucial for impact and performance.

“To support their aim to access and generate reliable ESG data, nearly half of investors anticipate allocating more budget to their sustainable investment strategy on ESG data acquisition and analysis.”

BNP Paribas’ ESG Survey 2025 offers a compelling snapshot of a sector moving from broad ESG commitments to sharper, data-informed strategies with an emphasis on measurable impact. For institutional leaders, sustainable investing is no longer about alignment—it’s about alpha.

Read the full survey below.

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