Nearly all institutional investors in the UK and Europe (93%) are concerned about the state of sustainability under a Trump presidency, according to Pensions for Purpose, a platform connecting asset managers, pension funds, and advisers to help direct capital toward impactful investments.
While US sustainability practices are not considered “critical” to investors’ strategies, 83% of respondents reported “some level of influence” according to the Impact Lens Survey Shorts by Pensions for Purpose. 22% cited a “significant impact”, and 39% reported a “moderate impact”. Only 17% said US developments had “no influence” on their investment decisions, underlining the interconnected nature of global sustainability trends.
Despite concerns about potential US policy shifts, the survey showed a strong commitment among UK and European institutional investors to sustainable investing. Over half (58%) of respondents plan to increase their impact allocations over the next year, while 42% intend to maintain current levels. According to the survey, no respondents plan to reduce their allocations to sustainable assets.
The survey, conducted between November and December 2024, featured 34% of respondents representing asset managers and 64% representing asset owners and consultants across the UK and Europe.
61% of organisations have set or are planning to set specific targets for impact investments, while 39% have yet to do so, according to the survey.
The findings were released alongside the launch of Impact Lens Survey Shorts, a dynamic tool by Pensions for Purpose aimed at providing real-time insights into sustainability and investment trends among institutional stakeholders.
Bruna Bauer, research manager at Pensions for Purpose, said: “The results of our first Impact Lens Survey Short are both encouraging and eye-opening. The fact that 93% of investors are concerned about the state of sustainability in the US, combined with the significant influence of US developments on their strategies, highlights the interconnected nature of sustainability in today’s global economy.
At the same time, that no one is planning to decrease their impact allocation over the next 12 months is interesting. There is clearly strong momentum to increase sustainability allocations, which reflects the resilience and commitment of institutional investors to driving meaningful change.
Source: Fund Europe