Majority of global investors believe energy transition is ’unstoppable’

In a major new survey of global investors, almost seven in 10 (69%) investors globally have said they believe the energy transition is ‘unstoppable’ despite recent policy shifts.

The PM700 report from the pension-funds owned global investment manager, IFM investors, sought the views of more than 700 senior investment professionals across 18 countries, on the latest private markets investment trends, and provides tailored insights for North America, Asia-Pacific and Europe.

This year’s research reveals that most investors worldwide don’t feel recent policy changes will prevent the energy transition. Investors see a significant upside in the shift to a low-carbon economy, with more than two-thirds (68%) of respondents drawn to energy transition-focused infrastructure funds. Alongside this, among their top three reasons for investing in — or increasing exposure to — infrastructure debt, they cite the desire to have a greater direct influence and contribution to the energy transition.

The research also found that investors now view sustainability as integral to their private market strategies, with 70 percent considering it central to their investment approach. This year’s research highlights that despite varying regulatory backdrops and risk appetites across the globe, sustainability is a key financial performance and risk management driver for investors.

More than seven in 10 (72%) investors are prioritising climate and transition risks, while more than two thirds (67%) of investors prioritise biodiversity and nature-related risks.

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

“The energy transition is reshaping the investment landscape, creating both unprecedented opportunities and new risks. Investors who can navigate this shift — by allocating capital to sustainable infrastructure, supporting decarbonisation of existing assets, and engaging actively with companies — will be best positioned to deliver long-term outcomes.”

“It’s incredibly positive to see that sustainability continues to feature heavily in investor thinking - it’s at the heart of private market strategies, with the majority of institutional investors making it central to their approach. From managing climate, biodiversity and nature-related risks to seizing opportunities in the energy transition, investors worldwide see sustainability as a key driver of long-term performance and risk management, regardless of regional differences in regulation or risk appetite."

Regional figures:

EMEA:

• 78% of respondents consider sustainability as central to their investment approach

• 74% of respondents consider climate and transitions risks across their private market investments

• 72% of respondents consider nature and biodiversity risk across their private market investments.

• 75% of respondents consider the energy transition as unstoppable despite recent policy shifts

North America:

• 58% of respondents consider sustainability as central to their investment approach

• 67% of respondents consider climate and transitions risks across private market investments

• 64% of respondents consider nature and biodiversity risk across their private market investments

• 63% of respondents consider the energy transition unstoppable despite recent policy shifts

Asia-Pacific:

• 78% of respondents consider sustainability as central to their investment approach

• 80% of respondents consider climate and transition risks across private market investments

• 66% consider nature and biodiversity risk across their private market investments

• 70% consider the energy transition as unstoppable despite recent policy shifts

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 $238 AUD billion (as at July 2025), we serve over 750 institutional investors worldwide. IFM operates from 13 offices across Australia, Europe, North America and Asia.