Despite the recent global political backlash toward sustainability and net-zero initiatives, 60% of global institutional and wholesale investors expect to increase allocations to investments which actively combat climate change over the next three years, according to new research conducted by Robeco.
The firm’s Global Climate Investing Survey found that almost three-fifths (59%) believe demand for climate mitigation solutions will remain strong irrespective of political sentiment.
Positive sentiment toward climate-centric investments comes despite growing investor concerns about government policy. Only 19% expect an orderly climate transition to take place, with 47% expecting ‘too-little, too-late’.
Some 44% think the goal of limiting global warming to well below 2°C is unachievable, while government policy uncertainty is rated as the biggest obstacle when considering climate mitigation solutions (cited by 45%). Yet 94% of respondents with a net-zero goal state they will stay the course irrespective of government policy.
Most investors believe physical climate risks will continue to affect physical asset prices, with two-thirds (66%) expecting a moderate or significant impact over the next five years. At the same time, energy security and the drive to build domestic renewable capacity are becoming increasingly important geopolitical and macroeconomic forces: a majority of investors say the conflict in the Middle East will either moderately (60%) or significantly (15%) accelerate the transition to renewable energy.
Lucian Peppelenbos, climate and biodiversity strategist at Robeco, commented: “Our 2026 study illustrates what we call the new reality of climate investing. While investors remain committed to their net-zero goals, there is a growing realism that the transition is driven by hard economics and hard geopolitics. The drive for energy security is benefiting investments in areas such as renewables, battery storage and grids. The new climate reality is also a realization that physical risks are here now, not in a distant future. We believe this will increasingly drive investor sentiment in the next few years.”
This year’s study found that investors are getting to grips with the trade-offs involved in decarbonising portfolios: investment performance is still the biggest challenge overall (50%) but it has fallen sharply from 2025 (67%). Data quality has also reduced as a challenge (34% vs 48% last year), although balancing targets with impact (41%) and dealing with complex asset classes (37%) remain high up on the agenda.
Peppelenbos concluded: “Climate investing is becoming more sophisticated with more forward-looking data rather than carbon emissions only, and more integrated with financial performance. As investment engineers, we continue to innovate with data and research so that we can support our clients.”
