Nearly 87 percent of institutional investors remain steadfast in their commitment to sustainable investing, while increasingly targeting specific ESG themes to drive returns and measurable impact, according to BNP Paribas’ 2025 ESG Survey released on Thursday.
The fifth edition of the biennial study, titled “Industry Survey: Institutional Investors Leading the Way”, was conducted by BNP Paribas’ Securities Services in collaboration with its Global Markets and Financial Institutions Coverage businesses.
It surveyed 420 institutional investors representing approximately $33.8 trillion in assets under management across 29 countries.
Steady Commitment Despite Softer Advocacy
Despite shifting regulatory landscapes and geopolitical pressures, 87 percent of respondents said their ESG and sustainability objectives remain unchanged. Moreover, 84 percent expect the pace of sustainable investing to either maintain momentum or accelerate through 2030.
However, a more muted tone is emerging in external communications, with 41 percent of investors reporting a more cautious approach to articulating their ESG strategies and achievements.
A Shift Toward Thematic ESG Strategies
Generalist ESG investing is giving way to more targeted approaches. The survey found that 85 percent of investors now integrate sustainability criteria into their investment decisions, with 59 percent focusing on thematic investments.
Top sustainability priorities over the next two years include 49 percent of the investors increasing allocations to energy transition assets, 47 percent using active ownership to advance organizational ESG goals and 46 percent shifting capital toward low-carbon assets while divesting from carbon-intensive ones.
Rise of “Pacesetters” and Private Capital Leaders
The report identifies a subset of investors — termed “pacesetters” — who are significantly ahead in ESG integration. Representing 19 percent of respondents, these leaders are emphasizing portfolio decarbonization (95 percent), social impact (94 percent), biodiversity (86 percent) and just transition (68 percent).
Private capital managers are also emerging as major ESG players. Over 51 percent expect to use active ownership to achieve ESG outcomes. Social issues (76 percent) and just transition (63 percent) are especially high priorities among this group, reflecting their growing role in supporting the shift to a low-carbon economy.
ESG Credentials Shape Banking Partnerships
When selecting external banking partners, institutional investors are increasingly prioritizing ESG credentials. Brand reputation in sustainability was cited as the top criterion by 51 percent, followed by access to ESG-focused products and expertise by 40 percent and long-term commitment to client relationships by 33 percent.
In a move to strengthen ESG capabilities, 48 percent of respondents plan to increase their budgets for ESG data acquisition and analysis.
The survey spanned key regions, with 50 percent of respondents based in EMEA, 26 percent in APAC, and 24 percent in the Americas.
BNP Paribas supplemented the quantitative findings with qualitative interviews conducted between January and April 2025, offering a comprehensive view of institutional ESG strategies amid ongoing economic and climate transitions.
