Climate Change Increases as a Strategic Priority for Investors for First Time in 3 Years

Climate change has increased as a priority for investors for the first time since political backlash picked up steam in 2023, with more than eight out of ten of investors globally saying that they expect physical climate risks to impact asset prices over the next ten years, according to a new survey released by international asset manager Robeco.

The survey also found that the vast majority of investors with net zero goals in place remain committed to their target despite reduced government support for the goal, and that most investors expect to increase allocations to investments focused on combatting climate change over the next three years.

For the report, Robeco surveyed 300 institutional and wholesale investors across Europe, North America, Asia-Pacific, and South Africa, with assets under management ranging from less that $1 billion to more than $1 trillion, and representing over $35 trillion in AUM overall.

The survey found that investors appear increasingly aware of the effects of climate change on their portfolios, with 66% expecting physical climate risks to have a significant or moderate impact on asset prices over the next 5 years, rising to 82% over the next ten years – including 46% expecting a “significant” impact.

Similarly, 63% expect physical climate risks to impact strategic asset allocation over the next 5 years, with 57% also anticipating an impact on asset manager selection, and 59% on stock picking.

Alongside the awareness of climate risks, investor prioritization of climate change has stabilized after several years of decline, with 47% of investors reporting that climate change is significant or central to their investment policy, up from 46% last year.

The result marks the first increase since the importance of climate change to investment policy peaked at 75% in 2022. Notably, the growth was led by an increase among North America investors, which led the decline, and still trail the rest of the world at 27%. Investors indicated that they expect the growing prioritization of climate change to continue, with 62% expecting it to be significant or central to investment policy within the next two years.

Lucian Peppelenbos, Climate and Biodiversity Strategist at Robeco, said:

“The increasingly alarming physical effects of global warming, such as the wildfires that forced over a quarter of a million people to evacuate in Europe, are certainly focusing minds. In one of the most striking results of the 2026 survey, a majority of investors say those effects will have a significant impact on asset prices and strategic asset allocation over the coming years. Climate has moved from a stated ambition to a pricing question, and a pricing question cannot be set aside when the mood turns.”

While investors remain focused on climate change, the report found that they also appear pragmatic about progress towards global climate goals, with only 19% expecting an orderly climate transition to take place over the next decade, and 44% viewing the Paris Agreement 2°C target on limiting global warming as unachievable.

Despite their outlook on climate progress, however, the survey found that investors are largely sticking with their climate goals, and anticipating increases in their allocations to climate solutions. Among those surveyed, 22% of investors said that they have made a public commitment to the goal of net zero GHG emissions by 2050, compared with 23% last year, while 14% report being in the process of making a public commitment, unchanged from 2025, and 31% are investigating making a commitment, up from 26% last year.

Among those with a commitment in place, the survey found that 64% reported that the slowdown in government support globally for net zero has not changed their goal or investment approach, while 31% say they remain committed but are reconsidering their investment approach, and only 4% report reconsidering their net zero commitment.

Notably, nearly two thirds (63%) of investors agreed that they expect the backlash against net zero to reduce over time, as the risks of climate change become more significant and material for investors and governments, according to the report.

The report also found that 42% of investors plan to increase allocations to investments or funds with the aim of actively combating climate change over the next year, rising to 60% of investors over the next three years. Additionally, 72% of investors reported that their organizations have either set a quantitative target for allocations to climate solutions or outlined a general aim to invest more in climate solutions, increasing from 64% last year.

Investor plans to increase investment in climate solutions come as they expect opportunities to continue to grow, according to the survey, with 71% of respondents agreeing that the transition to renewable energy will continue to happen regardless of the backlash to net zero, and nearly half anticipating that others’ reduced climate commitments will increase investment opportunities around the transition to renewable energy.

Peppelenbos said:

“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.”

Click here to access the survey.