Sustainability Survey by Morgan Stanley Reveals Strong and Growing Interest Among Individual Investors

The latest “Sustainable Signals” report from the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Wealth Management reveals that individual investors worldwide are increasingly interested in sustainable investing, with 77% expressing this interest and 54% planning to ramp up their sustainable investments in the coming year.

Key factors driving this surge in interest over the past year include advancements in climate science and the growing recognition of the financial benefits associated with sustainable investments. A significant majority of surveyed individuals (77%) believe that companies should actively address environmental and social issues.

Despite this focus on sustainability, a noteworthy finding is that 51% of respondents would consider investing in traditional energy companies, provided they have robust transition plans in place to mitigate environmental impact and address climate change concerns.

The report underscores climate action as a primary investment theme, with 15% of investors identifying it as their top priority, followed by healthcare (13%), water solutions (11%), and the circular economy (11%).

However, certain concerns persist among investors, including a lack of transparency and trust in sustainability reporting (63%) and the potential for greenwashing (61%). Many investors also express interest in social themes but feel uncertain about where to begin.

The findings emphasize the need for guidance from investment professionals, as more than half of respondents (52%) admit to having limited knowledge about how to initiate sustainable investments, and 47% perceive a shortage of available financial products. This presents a significant opportunity for asset managers and investment platforms to assist investors in aligning their investment strategies with sustainability goals.

The Sustainable Signals series, initiated in 2015, tracks the perspectives of individual investors, institutional investors, and corporates on sustainable investing.

For further details, you can access the complete results of the Sustainable Signals survey here.

About Morgan Stanley: Morgan Stanley (NYSE: MS) is a leading global financial services firm offering a wide array of investment banking, securities, wealth management, and investment management services. With a presence in 42 countries, the firm’s employees cater to a diverse clientele, including corporations, governments, institutions, and individuals. For more information about Morgan Stanley

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