Instos committed to ESG despite lower advocacy: BNP Paribas

The BNP Paribas ESG Survey 2025 found most institutional investors remain committed to sustainable investing, while also moving towards more specific ESG-related investment themes to ensure both return and impact.

The survey revealed that while there has been a lower level of advocacy for ESG investing, 87% of respondents said their ESG and sustainability objectives remain unchanged. Additionally, 84% believe the pace of progress of sustainability is either going to continue or accelerate between now and 2030.

The top three sustainability and ESG objectives over the next two years included increasing allocations to energy transition assets (49%), using active ownership to advance their own organisation's ESG goals (47%), and investing in low-carbon assets while divesting from carbon-intensive assets (46%).

The survey revealed that investors in the Asia Pacific (APAC) region remain "steadfast" in their commitment to ESG, with almost 90% of respondents saying their objectives remain the same.

"What has changed however is the lower level of advocacy. Just under half (45%) indicate that while their targets have no changes, they plan to adopt a more reserved approach in communicating their process and achievement," BNP Paribas said.

Private capital managers also reported that they were placing more emphasis on social issues (76%) and just transition (63%).

Most private capital managers said they believe ESG investing can add value, improve alignment with asset owners, satisfy their stakeholders and enable them to benefit from investment themes around decarbonisation and the shift to a low-carbon economy.

The survey was based on responses from 420 asset owners, asset managers and private capital firms across 29 countries, representing an estimated $51.7 trillion (US$33.8tn) in assets under management overall.