Rapid Growth in ESG Assets Under Management Anticipated by 85% of Investors over the Next Two Years, According to Bloomberg Study

In a recent survey conducted by Attest, it was revealed that investor allocations and expectations for climate and technology-driven themes are on the rise. The survey, which polled 252 investment professionals across various regions, each with at least eight years of industry experience, highlighted this trend.

One of the key findings of the Attest survey was that nearly half of the respondents indicated that more than 15% of their portfolios will be dedicated to ESG (Environmental, Social, and Governance) strategies by 2027. This figure aligns with another survey, conducted by Bloomberg Intelligence's ESG Investor Survey, where 44% of investors expressed a similar expectation.

Both surveys also revealed a growing emphasis on climate-related investments. The Attest survey found that two-thirds of investors anticipate similar growth for climate-focused AUM (Assets Under Management), while the Bloomberg survey did not provide specific figures for this category but did indicate that investors see ESG as enhancing decision-making and risk-adjusted returns.

The Attest survey also identified Cybersecurity and Artificial Intelligence (AI) as the second and third most important ESG themes, with 39% and 45% of investors selecting them, respectively. Interestingly, respondents flagged the "risks and opportunities of AI in ESG" as the top area of focus for 2025.

In terms of specific investments, the Bloomberg survey pointed to major investment firms and institutions most actively engaged with ESG topics and climate strategies. These include companies involved in corporate Power Purchase Agreements (cPPAs) for renewable energy, such as GoldenPeaks Capital partnering with Auchan, and infrastructure investors like Axpo supporting large photovoltaic projects and issuing green bonds to fund sustainability investments.

However, both surveys also pointed to gaps in climate data, particularly in scenario analysis, Scope 3 emissions, and physical risk assessment. Close to 90% of respondents in the Bloomberg survey assess the carbon footprint of their portfolios, but nearly two-thirds of them still pointed to these data gaps.

In conclusion, the surveys suggest that investors are increasingly allocating resources to ESG and climate-focused investments, with a growing emphasis on technology themes such as AI and cybersecurity. However, there is still a need for improved climate data to support these investments and ensure they are aligned with the investors' risk management and return objectives.

Rapid Growth in ESG Assets Under Management Anticipated by 85% of Investors over the Next Two Years, According to Bloomberg Study