Global perspectives on investing in the low-carbon transition

The survey polled 200 institutions around the globe. Their sizes and geographies varied widely.¹

56% of investors who took this survey indicated that they plan to increase transition allocations in the next 1-3 years, and 46% said navigating the transition is their most important investment priority in the next 1-3 years.​

Q | How important is the transition to a low-carbon economy in creating opportunities and risks for your portfolio?

Globally, the majority - 56% - of respondents indicated a preference for a whole portfolio approach to transition investing, while 41% expressed a preference for an asset-class-by-asset-class approach.

Q | If you're planning to increase your allocation to transition strategies, is the increase at an asset class level or on a whole portfolio basis?²

Respondents expressed that there are some product offering gaps (e.g., whole portfolio approach, emerging markets, fixed income), as well as other challenges with transition allocations (e.g., tracking KPIs).

Q | Where do you wish to see more transition and sustainable investing products available?⁴

When it comes to selecting a transition partner, institutional investors are looking for an asset manager with strong research capabilities, access to proprietary deals, and performance track record.

Q | What are the most important considerations when selecting your transition investing manager? Please rank up to 3 responses.⁵