Morningstar Investor Pulse Survey 2026: What’s Shaping Sustainable Investing?

At this year’s PRI in Person event in Amsterdam, Morningstar Sustainalytics surveyed investment professionals to understand which sustainability issues, risks, and opportunities are most prevalent, both now and throughout 2027.

The survey captured responses from a cross-section of the investment community, with asset managers and asset owners each representing around one-third of respondents. The majority of participants worked in investment-focused roles, with respondents including portfolio managers, ESG managers, sustainability leads, and heads of responsible investment.

Geopolitics and Climate Are Top of Mind

When asked which sustainability-related issue will have the greatest impact on investment decisions through 2027, geopolitical instability emerged as the leading response, selected by 30% of participants. This was closely followed by physical climate risk at 25%.

This suggests that investors are increasingly balancing long-term sustainability challenges with a rapidly changing geopolitical environment. While climate-related considerations remain central to investment decision-making — which correlates with findings from Morningstar’s Asset Owner Perspectives Survey — broader concerns around market stability, trade dynamics, and global uncertainty are also commanding significant attention.

Figure 1. Which Sustainability-Related Issue Will Have the Greatest Impact on Investment Decisions Through 2027?

_{Source: Morningstar Sustainalytics survey.}

Investors Continue to Focus on Measuring Impact

More than half of respondents (55%) suggested that measuring real-world impact was the most significant challenge facing sustainable investors today — a clear frontrunner. Demonstrating financial value (25%) was voted as the second biggest challenge, while navigating regulatory change (10%) came third.

These findings suggest that the industry is increasingly focused on how investors can better quantify outcomes and demonstrate the connection between sustainability considerations and long-term investment performance.

Figure 2. What is the Biggest Challenge Facing Sustainable Investors Today?

_{Source: Morningstar Sustainalytics survey.}

Physical Climate Risks Remain Underestimated

Despite respondents understanding the impact that physical climate risk will have on investment decisions, they still believe that this is the sustainability risk most underestimated by markets. This risk came in first place, as voted on by 30% of investors, followed closely by biodiversity loss, and social and human rights risk, both of which received 25% of the vote.

This aligns with two other notable results from the survey: nearly half of respondents (45%) said the most important question investors need to answer before 2027 is, “How resilient is my portfolio to physical climate impacts?”

Similarly, when asked which sustainability question they would most like answered with complete confidence tomorrow, the most common response was the desire to understand the financial impact of physical climate risk (40%).

Taken together, these responses suggest that while climate risk is widely acknowledged, investors continue to seek greater clarity around its financial implications and portfolio-level consequences.

Opportunity Exists Across Multiple Themes

In terms of investment opportunities over the next three years, responses were fairly evenly distributed. The area of clean energy and electrification was considered the greatest opportunity by 30% of respondents, closely followed by climate adaptation and resilience (25%), and AI-enabled sustainability innovation (25%).

Figure 3. Where Do You See the Greatest Investment Opportunity Over the Next Three Years?

_{Source: Morningstar Sustainalytics survey.}

These results suggest that investor attention is no longer solely focused on mitigation and transition themes. Instead, respondents identified opportunities across resilience, technological innovation, and the practical solutions needed to address evolving sustainability challenges.

A Snapshot of Investor Thinking

The findings from our pulse survey at PRI in Person reveal an investment community that is looking beyond traditional sustainability debates and focusing on implementation, resilience, and measurable outcomes.

While concerns around geopolitical instability are growing, physical climate risk remains a defining issue for investors. At the same time, the industry's ongoing challenge is not simply managing sustainability risks, but understanding their real-world impact and translating them into long-term investment value.

As investors look toward 2027, the survey suggests that the intersection of resilience, opportunity, and accountability will remain at the heart of sustainable investing conversations.