European investors lead global momentum on sustainability and the energy transition amid global uncertainty

European investors are doubling down on sustainability and energy transition investment opportunities despite geopolitical turmoil, inflation and market uncertainty, according to new global research from IFM Investors. 

PM700, IFM Investors’ annual barometer which surveys 700 senior investment professionals from some of the world’s largest institutional investors across 19 countries, found EMEA investors continue with the strongest focus on sustainability globally with 81 per cent identifying the energy transition as a long-term source of attractive private market opportunities compared to 72 per cent globally. 

The findings suggest sustainability is increasingly embedded in investment decision making processes rather than being a standalone investment theme. 

Environmental and renewable energy ranked among Europe’s top private markets opportunity, with 38 per cent of European investors identifying it as top three area for future investment compared to 30 per cent globally. Advanced technologies was the only sector ranked higher by European respondents. 

The research comes as investors increasingly balance sustainability ambitions alongside a more uncertain global environment:  

• More than half of European investors - 55 per cent - cite geopolitical instability as a leading risk to their portfolios  

• 51 per cent cite inflation as a significant concern. 

• More than two-thirds - 68 per cent - of EMEA investors are focusing private markets allocations closer to home in Western Europe. 

Sustainability, energy security and resilience becoming increasingly interconnected 

PM700 suggests European investors increasingly view sustainability, energy security and long-term resilience as complementary investment opportunities for their portfolios. 

The survey found infrastructure continues to play a central role in that regard, with 63 per cent of investors globally planning to increase infrastructure equity allocations over the next three to five years. The study found investors are increasingly looking to infrastructure to provide both resilient portfolio characteristics and exposure to long-term structural trends such as the energy transition, digitalisation and artificial intelligence. 

Technology and sustainability are also becoming more closely linked. 

• More than seven in ten investors globally (71 per cent) believe exposure to long-term megatrends such as artificial intelligence, digitalisation and the energy transition will be essential to achieving future return objectives. 

• A further 61 per cent believe private markets provide a better way to access those opportunities than public markets. 

As demand for power, digital infrastructure and energy networks grows, sustainability considerations are extending beyond climate to include a broader spectrum of long-term risks and opportunities to support value creation in infrastructure, which is in turn expected to fuel future economic growth, competitiveness and resilience.  

Quotes attributable to Maria Nazarova-Doyle, Global Head of Sustainable Investment at IFM Investors:  

"The notable finding is not that European investors focus on sustainability. It is that their focus remains exceptionally strong despite ongoing geopolitical tensions, inflation concerns and broader market uncertainty." 

"European investors increasingly view sustainability, energy security and long-term economic resilience as complementary rather than competing objectives. The transition to a lower-carbon economy continues to drive significant value creation opportunities across energy, infrastructure and private markets. 

"What PM700 suggests is that sustainability has moved from being a differentiator to becoming a baseline expectation of sound portfolio management. Investors are increasingly looking for managers that can demonstrate credible, measurable sustainability value creation as part of their strong investment track record. 

"Infrastructure can play a critical role in portfolios over the next decade and beyond. Whether investing in renewable energy generation, electricity networks, digital infrastructure or energy security, investors increasingly recognise that many of the world's most lucrative investment opportunities require structured long-term stewardship to generate returns and manage systemic risks." 

About IFM Investors 

IFM Investors is a global asset manager, founded and owned by pension funds, with capabilities in infrastructure equity and debt, private equity, private credit, real estate and listed equities. Our purpose is to invest, protect and grow the long-term retirement savings of working people. 

With assets under management of approximately US$201.7bn (as of June 2026) we serve over 750 institutional investors worldwide. IFM operates from 13 offices across Australia, Europe, North America and Asia. 

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