20 January 2025, LONDON – Institutional investors across the UK and Europe are expressing significant unease over the future of sustainability under a Trump presidency, with 93% voicing concern about the state of ESG and sustainability practices in the United States. These findings, derived from the inaugural Impact Lens Survey Shorts by Pensions for Purpose, shed light on the far-reaching implications of US political developments on global investment strategies.
While no respondents indicated that US sustainability practices 'critically' shape their strategies, 83% reported some level of influence, with 22% citing a significant impact and 39% noting a moderate impact. Only 17% of respondents stated that US sustainability developments have no influence on their investment decisions, reflecting a prevailing awareness of America’s role in shaping global ESG trends. This shows the global interconnectedness of sustainability issues, with potential US policy shifts resonating deeply with investors abroad.
Despite these concerns arising from across the Atlantic, the survey also highlighted a growing commitment among UK and European institutional investors and asset managers to sustainable investing. Over half (58%) of respondents plan to increase their impact allocations over the next 12 months, rather than decrease them or keep them at the same level, reflecting a positive commitment and optimism for the returns of these assets. Almost two in five (42%) will maintain current levels, while notably, no respondents intend to decrease allocations.
The survey also reveals that 61% of organisations have set or are planning to set specific targets for impact investments, though 39% currently lack such plans, pointing to an opportunity for greater engagement and education.
These results are announced after the launch Pensions for Purpose’s inaugural Impact Lens Survey Shorts, a dynamic tool designed to provide real-time insights into the attitudes and actions of key stakeholders within sustainability and investment.
Bruna Bauer, Research Manager at Pensions for Purpose, said: “The results of our first Impact Lens Survey Short are 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.”
Notes to editors
See Appendix 1, beneath all notes, for full results.
About Impact Lens Survey Shorts
The surveys, conducted entirely in-house, focus on gathering perspectives from pension funds and other asset owners, consultants, insurance companies and asset managers regarding sustainability issues. Each survey features a combination of contextual questions on current affairs affecting sustainability and a recurring question that tracks sustainable investment allocation trends over the next 12 months.
This initiative underscores Pensions for Purpose’s commitment to fostering meaningful dialogue around sustainability issues within the institutional investment community in the UK, Europe and United States.
This survey was conducted between November and December 2024.
About the respondents
The survey sample comprised a diverse audience, with 34% of respondents representing asset managers and 64% representingasset owners and consultants from both the UK and Europe. Respondents were drawn from the Pensions for Purpose membership and broader network. 44 unique individuals responded and provided 83 unique responses.
About Pensions for Purpose:
Pensions for Purpose exists as a bridge between asset managers, pension funds and their professional advisers, to encourage the flow of capital towards impact investment.
Impact investments are made with the intention to generate positive, measurable, social and environmental impact alongside a financial return.
Pensions for Purpose seeks to empower pension funds to make informed, sustainable investment decisions through our member Community, training, events, Impact Lens research and unique Knowledge Centre.
Press contact:
Material Impact Marketing Communications
Daniel Jason: [email protected]
APPENDIX 1
Question: Has your organisation set a specific target allocation for impact investments in its portfolio?
Response |
Percent |
Yes, we have a defined target |
50% |
No, but planning to set one |
11.1% |
No current plans for a target |
38.9% |
Question: Are you intending to increase, decrease or maintain your impact allocation over the next 12 months?
Response |
Percent |
Increase allocations |
57.9% |
Decrease allocations |
0% |
Maintain allocations at the same level |
42.1% |
Question: How concerned are you about the current state of ESG and sustainable investing practices in the USA?
Response |
Percent |
Extremely concerned |
35.7% |
Somewhat concerned |
57.1% |
Somewhat unconcerned |
3.6% |
Unconcerned |
3.6% |
Question: To what extent do US market developments in ESG/sustainability influence your investment strategy?
Response |
Percent |
Significant influence – regularly consider |
22.2% |
Moderate influence – sometimes consider |
38.9% |
Minor influence – occasionally consider |
22.2% |
No influence – don’t factor into decisions |
16.7% |
This PR was covered in:
AEF Info
Funds Europe
L'Agefi France
PA Adviser
Pensions Age
Pensions & Investments