Individual investors globally surveyed for Morgan Stanley Sustainable Signals 2026 edition; Two-thirds see opportunities in private markets
Sustainable Signals INDIVIDUAL INVESTORS 2026
Key takeaways for 2026 We surveyed 2,250 individual investors globally to understand their current thoughts around sustainable investing. Allocation to sustainable investments is slightly down, although sentiment remains positive Headline numbers around interest in sustainable investing remain at very high levels, at 92% of global respondents, up four points from 2025. The average portfolio allocation to sustainable investments is 31% this year, slightly down from 33%, demonstrating that there can be a disconnect between expressed views and behavior. Investor expectations about returns drive portfolio allocations Over 80% say financial returns are a key driver of their interest in sustainable investing, and expectations about returns continue to drive allocation plans. This year, 64% say they plan to increase their sustainable investment exposure, citing confidence in financial performance. Another 28% expect to maintain allocations, often due to diversification, while 5% plan to reduce exposure, most commonly citing disappointing returns. Thematic interests span a broad range of topics, while greenwashing remains a key barrier A quarter say that their top thematic goal is to advance a combination of environmental and social objectives in their portfolio, followed by 15% naming each of financial inclusion and health and wellness as their top priority. While almost a third say greenwashing is a very significant concern, more than three-quarters see sustainable investment options as a differentiator when selecting a financial advisor. Two-thirds see greater opportunities for sustainable or impact investments in private markets Globally, 40% of investors have private market assets in their portfolios today and a further 34% would like to in future. Most see greater opportunities for sustainable or impact investments in private markets compared to public markets. Those with most exposure to sustainable investments are more likely to have private market investments today (55%), driven by the ability to invest in innovation as well as for portfolio diversification. MORGAN STANLEY INSTITUTE FOR SUSTAINABLE INVESTING | 2026 | SUSTAINABLE SIGNALS: INDIVIDUAL INVESTORS 2026 2 SENTIMENT & ALLOCATIONS RETURN EXPECTATIONS & ALLOCATION DECISIONS THEMES & PRIORITIES PRIVATE MARKETS MENA SAMPLE DESIGN
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