Around 400 participants, 33.8 trillion US dollars in assets under management: BNP Paribas survey – Institutional investors continue to focus on ESG

Institutional investors worldwide are reaffirming their ESG commitment and choosing increasingly targeted strategies, according to BNP Paribas' 2025 ESG Survey, for which the company surveyed 420 institutional investors with a combined $33.8 trillion in assets under management.

Changed communication strategy of asset managers

The results show that 87 percent of the surveyed asset managers , asset management companies, and private capital firms are continuing to pursue their sustainability goals. Most expect ESG investments to develop at least at the same pace or faster by 2030. At the same time, however, a new trend in communication is emerging: 41 percent of respondents are more reserved in communicating their ESG processes and successes.

However, this shift in communication strategy doesn't prevent investors from taking concrete action. The respondents set clear priorities for the next two years: Almost half are increasing their investments in assets that contribute to the energy transition. At the same time, 47 percent are using active ownership strategies to advance their ESG goals, while 46 percent are investing in low-carbon assets while simultaneously selling carbon-intensive assets.

Differences visible

The study reveals a differentiation among the respondents. It identifies a group of leading investors, comprising 19 percent of the participants, who pursue advanced sustainability approaches. These investors go a step further: 95 percent reduce the carbon footprint of their portfolios and consider social issues. Around 85 percent also protect biodiversity and promote a just transition of resources.

While these developments extend across all asset classes, the private markets sector is experiencing its own dynamic. Here, 51 percent of the investors surveyed rely on active engagement to achieve their ESG goals. Their focus differs somewhat from that of the other 49 percent: Three-quarters prioritize social issues, while almost two-thirds focus on the just transition. The respondents see a dual benefit in ESG investments: They increase portfolio value while simultaneously aligning with their clients' sustainability goals.

To achieve these goals, institutional investors are increasingly seeking suitable partners. When selecting their managers, they pay particular attention to ESG brand image. Many also value products and expertise, as well as long-term collaboration and shared sustainability goals. The importance of reliable data is demonstrated by the fact that almost half of investors plan to allocate more resources to ESG data.

Overall, the BNP Paribas study paints a picture of an ESG market in transition. Institutional investors are further developing and specializing their strategies. The shift from general ESG approaches to thematic investments that contribute to the energy transition and social transformation marks a new phase.

The study "Industry Survey: Institutional Investors Leading the Way" is based on surveys conducted by BNP Paribas from November 2024 to January 2025. Participants come from 29 countries worldwide.