11 November 2025

Headlines

• Sustainable and responsible investment has moved from a ‘niche practice to a systemic consideration’, though the pace and scale of change remain insufficient to meet global challenges such as climate change.
• Positive developments including enhancements to sustainability disclosures, which began in the EU, have now spread across many GSIA regions.
• Despite challenging political and economic conditions over the last two years, there are signs that a ‘sustainable economic transition is underway’.
• But the report warns: without government interventions to transform the global economy, capital will remain incentivised to exacerbate – rather than limit and respond to – climate change.

Click here to download the report

Click here to download the data annex

Overview

COP30, Brazil – The Global Sustainable Investment Alliance (GSIA)’s seventh report has found that sustainable and responsible investment is moving from a ‘niche practice to a systemic consideration’.

The biennial Global Sustainable Investment Review, published during COP30, describes how the global economic, political, and sustainability landscape has been characterised by volatility and fragmentation over the last two years. However, throughout this period of uncertainty, it points to a renewed effort to anchor finance within the transition to a net-zero economy.

Referencing the steep rise in investment allocated to the clean energy sector along with data showing the green economy is the second fastest growing industry globally, the report states: ‘There are signs that a sustainable economic transition is underway.’

The review shows that fund-level sustainability disclosures, which began in the EU, have since been adopted across many GSIA regions. It says this has reset expectations for how we define and report sustainable and responsible investment, “with an emphasis on moving the industry toward a more consistent and transparent standard of practice aligned to real-world change”.

But the report cautions that a weakening political consensus on climate policy has the capacity to undermine progress. It warns: “In the absence of government interventions to reshape the global economy onto a sustainable trajectory, capital will remain incentivised to exacerbate climate change rather than address it.”

The report also shares concerns over the “policymaker investment dilemma” whereby policymakers previously placed significant expectations on private capital to finance the transition without fully understanding the nature of investment decisions.

Data

For over a decade, the Global Sustainable Investment Review has tracked the growth in the use of responsible and sustainable investment approaches by bringing together comprehensive surveys from GSIA member organisations across major markets.

This year’s report was unable to draw on the traditional sources of data – large-scale surveys of fund managers across the world – which accounted for the vast majority of USD$124 trillion AuM covered in previous GSIR reports. To bridge this gap, we have included data from Morningstar, which limits the scope of analysis to legal fund public disclosures made by asset managers, significantly reducing the volume of assets covered (a greater than 50% reduction).

Despite these differences, there is a continuation of the trends highlighted in previous GSIR reports, including the rise of Stewardship & Engagement and increasing adoption of responsible and sustainable investment approaches, particularly in markets where regulations are more developed.

The analysis finds that the value of fund assets reporting the use of responsible or sustainable investment approaches has reached USD$16.7 trillion, increasing by nearly USD$5.5 trillion (49%) over the last two years, using the same Morningstar data approach.

James Alexander, Chair of the GSIA and CEO of the UK Sustainable Investment and Finance Association (UKSIF), said:

“This report demonstrates that the sustainable investment industry is on a rapid evolutionary trajectory, from a highly specialised field to market-wide consideration. The record growth of the green economy highlights how quickly the sustainable transition is progressing.

“But there are challenges ahead, particularly concerning the fragmented political consensus on climate policy. Governments across the world must ensure they rapidly implement the policies necessary to attract large volumes of capital into sustainable assets.

“This requires clearer policy direction and stronger collaboration with investors to maintain momentum towards a sustainable global economy.”

Aleksandra Palinska, Executive Director of Eurosif, said:

“Despite evolving regulatory frameworks and challenging market conditions, Europe has continued to demonstrate leadership in sustainable finance, maintaining its position as a major hub for sustainability-related investment. The EU’s Sustainable Finance Disclosure Regulation (SFDR) has substantially contributed to the rapid growth in assets applying responsible and sustainable investment approaches. What we are witnessing is not just an increase in assets under management, but a structural shift in how investors assess value, risk, and impacts.

As the SFDR enters its review phase, Europe has an opportunity to refine and strengthen the framework – building on its foundations to provide investors with even greater clarity and ambition. Europe’s experience demonstrates that regulation, combined with investor commitment, can mobilise capital at scale and inspire similar progress across other regions.”

Estelle Parker, Co-CEO of the Responsible Investment Association Australasia (RIAA), said:

“It’s heartening to see progress on mainstreaming responsible investment practices across markets, not just in Australia and New Zealand. Investors are increasingly taking their responsibility to understand investee companies seriously, and they’re considering a wide range of risks to investments. This all supports better long-term financial returns.

“Despite challenging political and economic conditions in some markets, this report shows the economic transition is happening. Just not fast enough to mitigate the worst impacts of climate change. To do that, we need government intervention to make sure the policy settings are right.”

Maria Lettini, CEO of the US Sustainable Investment Forum (US SIF), said:

“This year’s Global Sustainable Investment Review shows that sustainable investment is still a systemic consideration shaping markets worldwide. Yet the report is also a clear reminder that policy ambition and investor action must move in tandem.

“To achieve a just and lasting transition, governments must create the enabling conditions that direct capital toward real-world impact, strengthening disclosure standards, ensuring regulatory consistency, and fostering trust across borders.

“As COP30 gets underway, it is a pivotal moment to deepen this global collaboration and ensure that the transition to sustainability becomes both irreversible and inclusive.”

The Japan Sustainable Investment Forum (JSIF) said:

“As practice deepens and diversifies, the challenge to capture the state of sustainable investment practices at a global level admittedly becomes greater. It is important to be transparent about these challenges, but also to work together to find the right creative solution.

“This year’s Global Sustainable Investment Review highlights these complexities and offers valuable insights into regional differences in policy and practice. We hope the report sparks meaningful discussion and helps us shape a more sustainable future together.”

Referring to fund assets reporting the use of responsible or sustainable investment approaches, Hortense Bioy, Head of sustainable investing research at Morningstar, said:

“The global growth of nearly 50% in the adoption of sustainable investment approaches over the past two years is striking, underscoring the continued mainstreaming of environmental and social considerations in investment processes. This trend is most pronounced in regions where regulation has enhanced transparency, notably Europe, Australia and Canada.

It’s also important to highlight the pivotal role of corporate engagement and stewardship in sustainable investing. These practices consistently emerge as the preferred tools for investors seeking to incorporate sustainability issues in their decisions and influence corporate behavior.”

Click here to download the report

Click here to download the data annex

Notes to Editors

The Morningstar universe is limited to collective investment funds run by Asset Managers, representing 30% of the investable market. Morningstar rely on publicly disclosed fund documentation i.e. legal filings, to measure the use of responsible and sustainable investment approaches. Historically the GSIR has relied upon self-disclosed investor practices gathered through surveys undertaken by GSIA members.

The previous report (GSIR 2022) research universe included asset managers (both funds and segregated mandates) and asset owners, representing 58% of the investable market. The 50% reduction in scope of assets considered within the analysis is due to the exclusion of asset owner directly managed assets and segregated mandates run by asset managers, which were captured in previous GSIR reports, via GSIA member surveys.

About the Global Sustainable Investment Alliance

The Global Sustainable Investment Alliance (GSIA) is an international collaboration of membership based sustainable investment organisations around the world. Its members are:

• European Sustainable Investment Forum (Eurosif)

• UK Sustainable Investment and Finance Association (UKSIF)

• US Sustainable Investment Forum (US SIF)

• Japan Sustainable Investment Forum (JSIF)

• The Responsible Investment Association Canada (RIA Canada)

• The Responsible Investment Association Australasia (RIAA)

• The Dutch Association of Investors for Sustainable Development (VBDO)

GSIA aims to unlock the power of the worldwide financial services industry to drive leadership, achieve a substantial impact on key global challenges, and accelerate the transition to a sustainable future.

The secretariat of GSIA is hosted by UKSIF, and the GSIA Chair is the UKSIF Chief Executive, James Alexander. For more information, visit https://www.gsi-alliance.org/.

About A Future Worth Living In

A Future Worth Living In (AFWLI Ltd) provides advisory, consultancy, and research services to financial institutions seeking to better understand their role in addressing the climate crisis and navigate the changing world. We undertake research on behalf of clients and conduct our own research into areas related to the transition to a sustainable future. Additionally, we devise, develop, and deliver tailored learning and development curricula for clients seeking to embed meaningful change work within their organisations.

We were commissioned by the UK Sustainable Investment & Finance Association (UKSIF), as the host of the GSIA secretariat, to produce the last two Global Sustainable Investment Review reports (the GSIR 2022 and GSIR 2024).

For more information, visit www.afutureworthlivingin.com.

About Morningstar, Inc.

Morningstar UK Limited is a subsidiary of Morningstar, Inc. (“the company”), a leading provider of independent investment insights in North America, Europe, Australia, Asia, and Africa. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately US$352 billion in assets under management and advisement as of June 30, 2025. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X @Morningstar Inc.