This report focuses on responsible investment dynamics and trends as of 2025 with an outlook for 2026.
Key findings include positive inflows into responsible investment funds, especially in fixed income, with Europe leading global inflows. The demand in equity responsible investment is shifting from restrictive passive screens to broader, low tracking error strategies. Climate coalitions have recalibrated while asset owners maintain strong stewardship and reallocate misaligned mandates. ESG index performance generally aligns with benchmarks, with some regional divergences. Corporate focus on climate adaptation and resilience is increasing, alongside rising commitments to science-based targets. The regulatory environment is moving towards simplifying ESG disclosures to enhance decision usefulness. ESG data providers are consolidating and focusing on aggregated, decision-useful metrics. The clean energy transition faces bottlenecks shifting from capacity additions to system integration amid rising global electricity demand.