Morgan Stanley Survey: Sustainable Investing Sentiment High Despite Allocation Dip
Event summary
- A Morgan Stanley survey of 2,250 individual investors across North America, Europe, and APAC found 92% express interest in sustainable investing.
- Investor allocations to sustainable investments slightly decreased from 33% in 2025 to 31% in 2026.
- 64% of respondents plan to increase sustainable investment allocations, primarily driven by performance expectations.
- Private markets are viewed as a key opportunity for sustainable investments, with 64% of respondents seeing greater potential there.
The big picture
While investor enthusiasm for sustainable investing remains robust, the slight decrease in allocations signals a maturing market where performance and transparency are paramount. Morgan Stanley's survey highlights a growing preference for private markets, which could accelerate capital flows into less liquid asset classes. This trend underscores the need for robust due diligence and risk management within sustainable investment strategies.
What we're watching
- Sentiment Gap
- The disconnect between positive sentiment and declining allocations suggests investors may be reassessing risk or performance expectations, requiring Morgan Stanley to better align product offerings with investor behavior.
- Private Market Risk
- Increased interest in private markets carries execution risk, as access and liquidity are limited, potentially impacting returns and investor satisfaction.
- Greenwashing Concerns
- The prominence of greenwashing as a barrier to sustainable investing will likely intensify regulatory scrutiny and necessitate greater transparency from asset managers, including Morgan Stanley.
Related topics