Interest in sustainable investing at 92%, yet portfolio allocation lags

Individual investor interest in sustainable investing continues to rise even as allocations slightly decline, according to a new Sustainable Signals report by the Morgan Stanley Institute for Sustainable Investing.

The survey polled 2250 active individual investors across North America, Europe and Asia Pacific (APAC) between February and March of this year to assess attitudes toward sustainable investing and where investors see the greatest opportunities and challenges.

Globally, 92% of respondents said they were very or somewhat interested in sustainable investing, up from 88% in 2025.

Three quarters already have some portfolio exposure to sustainable investments, 50% of whom first included sustainable options more than five years ago.

However, the research found the average allocation in 2026 was down slightly from 2025 (31% versus 33%), pointing to a potential disconnect between sentiment and behaviour.

"Our latest Sustainable Signals survey shows that performance continues to be the top driver of individual investors' interest in sustainable investing as they look to achieve both market-rate returns and real-world impacts," Morgan Stanley chief sustainability officer Jessica Alsford said.

"Looking ahead, a majority of individual investors see greater opportunity for sustainable investments in private markets, especially for portfolio diversification and investing in innovation."

The survey also revealed of those interested in sustainable investing, 85% said the top reason was either support for real-world outcomes alongside market-rate returns or the expectation that sustainable investments may offer stronger returns than traditional peers.

Expectations about returns also drive decision-making. Among the 64% planning to increase their allocation to sustainable investments over the next year, confidence in performance is the most common reason. Conversely, the 5% planning to decrease their allocation cite weaker returns as the primary reason.