Asset owners quietly integrate sustainability into portfolios: FTSE Russell

Levels of sustainable investment practice have returned to those last seen in 2022, with 84% of global asset owners now taking sustainability considerations into account, a new FTSE Russell survey showed.

A further 15% of asset owners are currently evaluating whether to do so.

Even as sustainability becomes more mainstream, the survey found indications that more public strategies, such as engagement, are declining, with the percentage of asset owners saying they are engaging on key themes all falling by five to10 percentage points.

FTSE Russell Ninth Annual Sustainable Investment Asset Owner Survey 2026 received response from 402 asset owners from 24 countries, in three regions: Asia Pacific (30%), EMEA (40%) and North America (30%).

"Sustainable investment practice is quietly becoming an integrated, mainstream feature of asset owners' day-to-day work of balancing risk and return," FTSE Russell global head of sustainable Stephanie Maier said.

"Investors increasingly understand that sustainability factors can influence investment performance, and therefore need to be tracked, understood and taken into consideration."

However, Maier added, this conclusion must be tentative.

"At the time of writing this report, we are not yet seeing significant upticks in capital flowing back into labelled sustainable investment funds. Continuing sensitivity around many aspects of ESG and climate policy mean that many asset owners remain much less vocal on these issues than they were in previous years," she said.

The survey also found asset owners are integrating sustainability factors more widely throughout their portfolios - and they expect that trend to continue. The percentage that reported applying sustainability considerations to more than 50% of their assets rose from 26% last year to 51% in 2026.

Listed equity remains the asset class where implementation by asset owners is most advanced. The survey also saw a significant jump in sustainable investing in private equity, reflecting the movement of sustainable investing practices from public to private markets.