Institutional investors across the UK and Europe are expressing significant unease over the future of sustainability under a Trump presidency, with 93% voicing concern about ESG and sustainability practices in the US, according to Pensions for Purpose’s inaugural Impact Lens Survey Shorts.
While no respondents indicated that US sustainability practices “critically” shape their strategies, 83% reported some level of influence, with 22% citing a significant impact and 39% noting a moderate impact. Only 17% of respondents stated that US sustainability developments do not influence their investment decisions, reflecting “a prevailing awareness of America’s role in shaping global ESG trends”, the report stated.
Despite these concerns arising from across the Atlantic, the survey also highlighted a growing commitment among UK and European institutional investors and asset managers to sustainable investing. Over half (58%) of respondents plan to increase their impact allocations over the next 12 months, rather than decrease them or keep them at the same level, reflecting a positive commitment and optimism for the returns of these assets. Almost two in five (42%) will maintain current levels, while notably, no respondents intend to decrease allocations.
The survey also revealed that 61% of organisations have set or, are planning to set, specific targets for impact investments, though 39% currently lack such plans, pointing to an opportunity for greater engagement and education.
Bruna Bauer, research manager at Pensions for Purpose, said: “The results of our first Impact Lens Survey Short are both encouraging and eye-opening. The fact that 93% of investors are concerned about the state of sustainability in the US, combined with the significant influence of US developments on their strategies, highlights the interconnected nature of sustainability in today’s global economy. At the same time, that no one is planning to decrease their impact allocation over the next 12 months is interesting. There is clearly strong momentum to increase sustainability allocations, which reflects the resilience and commitment of institutional investors to driving meaningful change.”
