Reading between the data: what’s shaping responsible investment in 2026?

Responsible investment and sustainability are often discussed in terms of policies and reporting. But the most relevant question is also the most practical: does responsible investment make institutional investors stronger, more resilient and better positioned for long‑term performance?

The data is clear that it does.

Responsible investment is simply good investment

As we open the 2026 PRI reporting window, it's a timely opportunity to step back and look at the data from the 2025 cycle – which shows how senior leaders are now framing responsible investment as a core business capability. Against a backdrop of accelerating climate instability and growing transition risk, responsible investment is increasingly being used to sharpen decision‑making, strengthen governance and support sustainable value creation. Put simply, responsible investment is simply good investment.

One of the clearest shifts we see in senior leadership statements from PRI signatories is the language of business value. Sustainability factors are no longer considered solely from a reputational standpoint. In fact, over 40% of PRI signatories go so far as to use responsible investment KPIs to evaluate the performance of their executives. This makes sense. Investment portfolios are built on the corporates they invest in – and where corporate entities are impacted by extreme weather and climate transition risks, the financial materiality of those sustainability issues is clear to see. This also works in the other direction – investors with data-driven approaches to climate resilience have found opportunities not only to protect existing value, but to create measurable new value as well.

Sustainability is integral to fiduciary duty

It’s therefore no surprise that 74% of reporting PRI signatories now explicitly connect their sustainability strategies with fiduciary duty. Integration of sustainability factors is increasingly understood as part of core investment excellence, much like credit analysis, scenario testing or stress modelling. Sustainability risks are information, and incomplete information is bad for business.

While regulatory and market contexts differ, the underlying business logic is consistent.

In Europe, regulation often provides the starting framework, but leading firms are using it as a lever to improve internal coherence and decision quality, rather than simply as a compliance burden. In the Americas, senior leaders tend to emphasise financial materiality, client outcomes and long‑term performance – the framing is about business performance, rather than a political stance. Across Asia, responsible investment is increasingly linked to growth, infrastructure investment and long‑term economic resilience. The focus is pragmatic, forward‑looking and closely tied to business expansion.

Different paths and different risk appetites, but a shared conclusion: integrating material sustainability factors supports better business outcomes.

Investing wisely in times of geopolitical volatility

Geopolitical tensions and ongoing conflicts have undoubtedly made the operating environment more complex. Some markets present difficult trade‑offs, and investors face real constraints. Acknowledging these realities is important. However, geopolitical instability has not weakened the case for investing responsibly – if anything, it has strengthened it. The ongoing Middle East conflict has restricted the flow of oil from the region, reinforcing the need for European energy security and therefore the case for renewables.

Responsible investment, at its core, is about ensuring that investment decisions are based on complete and decision‑useful information – particularly when uncertainty is high.

PRI signatories can access detailed 2025 reporting insights via MyPRI, supporting deeper analysis of peers, practices and trends – and I’m looking forward to digging into the data we collect in 2026.

We’ll continue this discussion at FundForum 2026, where the focus – as always – will be on how investment businesses can navigate complexity and emerge stronger for the long term.