The latest "Sustainable Signals" report from the Morgan Stanley Institute for Sustainable Investing reveals that sustainability is still seen as a key opportunity for long-term value creation by most companies worldwide. The survey, conducted between March and April 2025, involved over 300 private and public companies across North America, Europe, and APAC.
According to the survey results, 88% of respondents consider sustainability primarily (53%) or partly (35%) as a value creation opportunity. This marks an increase from the previous year. In contrast, only 12% view it mainly as a risk management issue. Furthermore, 83% of companies believe they can measure returns on their sustainability-related investments.
"The data suggest that sustainability remains central to long-term value creation," said Jessica Alsford, Chief Sustainability Officer and Chair of the Institute for Sustainable Investing at Morgan Stanley. She added that there is an alignment between corporate strategies and sustainability priorities as companies aim to build resilient businesses.
In the past year, more than half of the surveyed companies reported operational impacts due to climate-related events, with those in APAC experiencing the highest incidence at 73%. Common issues included extreme heat and weather events like storms. These incidents led to increased costs for 54% of affected companies and worker disruptions for 40%.
Looking ahead, over two-thirds anticipate further negative impacts from climate risks within five years. However, more than 80% feel prepared to enhance resilience against such challenges.
Other findings include progress in meeting or exceeding expectations regarding sustainability practices by 65% of companies—an increase from last year—and technological advances being identified as a key enabler by one-third of global respondents.
This year's survey also expanded its reach to include responses from companies in MENA and LATAM regions. MENA had the highest percentage (86%) viewing sustainability as a value driver while LATAM showed high anticipation (88%) of climate-related business risks but continued optimism about sustainable opportunities.
Morgan Stanley launched the Sustainable Signals series in 2015 to gauge views on sustainable investing among investors and corporates globally.
For more information about Morgan Stanley's services or its Institute for Sustainable Investing, visit their respective websites provided in this release.
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