Capital Group Annual Study Highlights ESG Resilience Amid Global Uncertainty
4 NOV, 2025
By Joanna Piwko from RankiaPro Europe
The adoption of environmental, social, and governance (ESG) criteria remains strong worldwide, particularly across Europe, the Middle East, and Africa (EMEA) and the Asia-Pacific (APAC) regions. Although global ESG adoption has edged down slightly from the record highs of 2023 and 2024, it continues to be a key focus for investors, according to Capital Group’s ESG Global Study 2025.
Four Key Findings from the 2025 Study
1. ESG Proves Resilient Amid Macroeconomic and Geopolitical Challenges
Global ESG adoption stands at 87%, just below the record 90% seen in 2023–2024.
Among EMEA investors with sustainable or ESG strategies, 92% plan to maintain or increase allocations over the next year.
The top three barriers to ESG investing over the next 12–24 months are geopolitical risk (81%), global economic growth prospects (67%), and regulatory uncertainty (62%).
2. Investors Refine Their ESG Approaches Across Asset Classes
The proportion of investors applying ESG criteria to fixed income has risen from 64% in 2024 to 70% in 2025, led by EMEA (73%).
Similarly, 48% of investors now apply ESG principles to private markets, the highest level since the study began in 2021.
When comparing multi-theme versus single-theme ESG strategies, investors cite diversification (67%), efficient access to multiple ESG topics (48%), and adaptability to changing market conditions (44%) as key benefits.
Notably, 58% believe that companies with credible transition plans can outperform in the long term, and 74% emphasize that fundamental research is essential to identify such firms.
3. Energy Transition, Water, and Health Seen as Long-Term Investment Themes
Six in ten investors express strong conviction in energy transition opportunities, followed by clean water (52%) and health (51%).
EMEA investors are particularly enthusiastic, with 66% favoring energy transition themes.
The region also leads in nature-related investing, with 63% prioritizing biodiversity and environmental themes in their responsible investment policies, and two-thirds already investing or planning to invest in thematic environmental funds.
4. Environmental Impact of AI Gains Attention
Globally, 73% of investors now view AI’s energy use and greenhouse gas emissions as top ESG risks for the next 2–3 years, up sharply from 54% in 2024.
Water consumption is another growing concern — cited by 43% of investors, more than double last year’s 18%.
While 58% see AI’s high energy demand as a major challenge for the energy transition, 56% believe the technology can also drive innovation and accelerate progress toward sustainability goals.
Expert Insight
This year’s ESG Global Study highlights the enduring role of ESG considerations in the investment process, even as investors refine their approaches. Fixed income and private markets are becoming increasingly important for ESG integration. At the same time, as AI continues to surge, investors are more conscious than ever of its environmental footprint — particularly energy and water use — while exploring how AI can foster innovation and support the energy transition.
Jessica Ground, Global Head of ESG at Capital Group
