MS · News · 20261022N

ESG and Sustainability

MORGAN STANLEY · 2026-10-22 · Importance 17 · Surprise 24

Morgan Stanley’s Sustainable Signals survey found that more than 80% of asset owners and asset managers expect sustainable-investment allocations to increase over the next two years. The expected growth rate is lower than in 2025, with growth opportunities and the increasing materiality of sustainability risks identified as key drivers. Two-thirds of institutional investors include responsible AI in their sustainable-investing strategy. Nearly all respondents expect climate-related physical risks to affect asset prices, but reported difficulty assessing the long-term impact.

Key facts

• More than 80% of asset owners and asset managers expect sustainable allocations to increase over the next two years. source
• Two-thirds of institutional investors consider responsible AI to be part of their sustainable investing strategy. source
• Nearly all surveyed expect climate-related physical risks to affect asset prices. source