Energy transition ‘unstoppable’ seven in 10 investors believe

A clear majority of global investors now see the global energy transition as unstoppable, despite policy headwinds, a new survey shows.

Despite policy headwinds, 69% of global investors don’t think that the energy transition will be stopped, according to IFM’s latest PM700 report, an annual survey among more than 700 global investment professionals. The survey includes responses from senior investment officials from pension funds, foundations, endowments, wealth managers and large investment consultants.

Dome 68% of survey respondents see significant opportunities in transition-focused infrastructure funds.

However, the research also highlights regional differences, with EMEA and Asian investors relatively more committed to tackling climate change than North American investors.

In the EMEA region, 78% of respondents consider sustainability as central to their investment approach while this figure drops to 58% for North American survey respondents.

The research also highlighted that investors now view sustainability as integral to their private market strategies, with 70 percent considering it central to their investment approach.

Commenting on the findings, Maria Nazarova-Doyle, global head of Sustainable Investment at IFM Investors said: “It’s incredibly positive to see that sustainability continues to feature heavily in investor thinking - it’s at the heart of private market strategies, with the majority of institutional investors making it central to their approach. From managing climate, biodiversity and nature-related risks to seizing opportunities in the energy transition, investors worldwide see sustainability as a key driver of long-term performance and risk management, regardless of regional differences in regulation or risk appetite."