Robeco, an asset manager with over €200bn under management, has published its outlook for sustainable investment in 2026. In the year ahead, Robeco expects capital allocation to transition strategies to remain steady while geopolitical risks dominate investor concerns.
Sustainable fund inflows surged in the early 2020s. Data reported in Robeco’s outlook shows that since 2023, that surge has cooled off. Sustainable fund launches reached a peak of over 200 in Q4 2022 and whilst launches continue in what is now a $3.7tn market, their pace has declined.
Robeco’s interpretation of the numbers frames these trends as corrections rather than reversals. “Sustainable investing is not retreating – it’s recalibrating. As the tempo shifts, we’re holding the note in the interest of our clients, while adapting to new realities”, says Rachel Whittaker, head of sustainable alpha research at Robeco.
The report notes that even with headline numbers declining, there are signs of market resilience. For instance, outflows from sustainable fixed income have been more resilient compared to equities and passive strategies have been more stable than active ones.
Over the next 12 months, Robeco expects geopolitical headwinds, primarily in the US, to dominate the agenda. Simultaneously, the fund manager expects broader market sentiment in sustainable investment to remain stable, backed by long-term prospects.
“In the US, vocal anti-ESG sentiment appears to be a minority view, while broader investor sentiment seems largely ambivalent”, the report reads.
“Remaining focused on our long-term investment beliefs reinforces the relevance and resilience of sustainable investing, built not on trends, but on science and enduring principles”, added Whittaker.
Looking ahead, Robeco also expects demand for physical risk management to increase. Driven by rising emission levels, the outlook urges investors to examine investment opportunities linked to adaption – from air purification and sea defence to nature-based solutions.
