Morgan Stanley’s Sustainable Signals: Institutional Investors 2026

Morgan Stanley’s Sustainable Signals: Institutional Investors 2026 examines how institutional investors are approaching sustainable investing amid changing market conditions and climate-related risks. Published by the Morgan Stanley Institute for Sustainable Investing, the report focuses on allocation expectations, investment risk, priority themes and the growing role of responsible AI.

The findings draw on an online survey conducted by iResearch from August 24 to October 1, 2026. It covered 900 institutional investors, comprising 600 asset owners and 300 asset managers, across North America, Europe and Asia-Pacific. Respondents had to be practicing or planning sustainable investing, so the sample does not represent all institutional investors.

Over the next two years, 82% of asset owners and 85% of asset managers expect to increase sustainable investment allocations, although fewer anticipate large increases than in 2025. Data availability and consistency is the leading concern, rated very significant by 64%. Climate adaptation and resilience is the most commonly pursued specific theme at 59%, ahead of climate mitigation at 52%. Two-thirds also incorporate responsible AI into their sustainable investing strategies.

The report highlights a growing need for reliable sustainability data and better assessment of physical climate risk. Some 88% find it difficult to evaluate long-term physical climate impacts on assets, while most expect these risks to affect asset prices within five years. These findings capture surveyed investors’ expectations rather than confirmed future investment flows. Access the original full report here: click here.

Official Report Source

Report: Sustainable Signals: Institutional Investors 2026

Published by: Morgan Stanley Institute for Sustainable Investing

Edition / Publication Year: Fourth comparable institutional investor survey edition, 2026

Publication Date: October 22, 2026