The anti-anti-ESG backlash has begun with asset managers claiming investor appetite for sustainable investment is stronger than ever.
BNP Paribas’ ESG Survey 2025, which covers 420 asset owners, asset managers and private capital firms across 29 countries with USD 33.8 trillion assets under management, finds “unwavering commitment to ESG objectives”.
Almost nine out of 10 (87 per cent) say their ESG and sustainability objectives remain unchanged, while 84 per cent believe the pace of progress of sustainability is either going to continue or accelerate between now and 2030.
Further, 85 per cent of respondents say they integrate sustainability-related criteria into their investment decisions, with 59 per cent performing thematic investment.
Almost half (49 per cent) are increasing allocations to energy transition assets; 47 per cent are using active ownership to advance their own organisation’s ESG goals; and 46% are investing in low-carbon assets while divesting from carbon-intensive assets.
Chris Iggo, CIO of AXA IM Core, AXA Investment Managers, concedes that since the re-election of Donald Trump as US President, geopolitical dynamics and changing attitudes towards sustainability have influenced investor sentiment. However, he says corporates and individuals “must focus on reality over rhetoric”.
Iggo argues that Trump’s attempts to favour fossil fuels over renewable energy sources will likely be ignored globally.
“Trump’s “drill, baby, drill” mantra may face practical limitations, as the current level of oil prices mean increased production may not be economically viable for many oil companies.
“In Europe, the commitment to reach net zero by 2050 remains strong. Here, the biggest gamechanger in recent years has not been the new US administration but the Russia-Ukraine war, bringing the question of energy security into the spotlight. The conflict has highlighted just how closely the energy transition and energy independence are linked,” Iggo says,
Iggo highlights continued “good progress” in the transition to net zero, noting a report from the International Energy Agency suggesting more than one in four cars sold globally in 2025 will be electric.
Further, the cost of renewable energy is falling relative to oil and gas on a long-term view, while demand for electricity is rising – driven by the ongoing development of China and the growth in artificial intelligence and data centres. Renewable energy will also provide greater energy security for emerging markets.
A May survey of 1,765 individual investors worldwide from conducted by Morgan Stanley finds more than half of respondents plan to increase their sustainable investment allocations in the next year, while only 3 per cent globally plan to decrease.
The survey reports that investors believe that sustainable investments offer “comparable or better returns to traditional options”, a sentiment particularly strong in Asia-Pacific.
The research reveals clean energy solutions are top investment priority with over 80 per cent of investors viewing energy transition as an opportunity to generate returns.
Iggo says: “Alongside the need for greater power generation – much of which will come from renewables – there are also new investments going into the energy grid and power transmission, that will benefit all industries and consumers – and the new US administration will not derail that.”
