Morgan Stanley Sustainable Signals: Annual Global Survey of Corporates Finds Sustainability Remains Value Creation Opportunity

• 88% of companies globally see sustainability as a way to create long-term value
• High investment needs, political and macroeconomic uncertainties considered top challenges, but more than 80% of companies say they can measure ROI
• Over half of businesses reported adverse business impacts from climate events in the past year, and 80% are preparing to increase resilience in the future

The majority of companies globally continue to view sustainability as a potential value driver, according to a new "Sustainable Signals" report by the Morgan Stanley Institute for Sustainable Investing. The survey polled over 300 private and public companies across North America, Europe and APAC between March and April of this year to understand how sustainability factors into their businesses and where their organizations see the greatest opportunities and challenges.

When asked how sustainability affects long-term corporate strategy, 88% of survey respondents said it is primarily (53%) or partly (35%) a value creation opportunity, up three points from the prior year. This stands in contrast to the 12% of corporates that see sustainability primarily through a risk management lens, down from 15% in 2024. Most companies (83%) also say that they can quantify returns on their sustainability-related investments, including both new projects and risk reduction activities, just as they do for other initiatives.

"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. "Companies around the world report an alignment between corporate strategies and sustainability priorities as they seek to build resilient, future-ready businesses."

In the past year, over half of companies experienced an impact on operations from physical climate-related events, with those in APAC citing the highest incidence (73%). Of those companies affected, extreme heat (55%) and extreme weather or storms (53%) were the most common issues. These events most commonly led to increased costs (54% of those affected), worker disruption (40%) and revenue losses (39%). Looking ahead at the next five years, more than two-thirds of all respondents see further negative impact from climate risks; however, more than 80% of companies feel "very" or "somewhat prepared" to increase resilience.

Other key survey findings include:

• Progress – 65% of companies responded that they are "meeting" or "exceeding expectations" when asked to describe progress on their sustainability practices, up six points from 2024.
• Barriers – The high level of investment required and political and macroeconomic uncertainties ranked as the top barriers to delivering sustainability strategies.
• Enablers – Companies around the world (33%) view technological advances as a key enabler of a successful sustainability strategy, while a favorable economic and operating environment is the most important factor in North America (32%).

As in 2024, this year's report looks at corporate attitudes toward sustainability across geographies and industries. In addition to the regions previously surveyed, the 2025 survey polls companies in the Middle East and North Africa (MENA) and Latin America (LATAM). While not included in global totals to maintain comparability to the 2024 survey, their responses are largely on par with broader trends. MENA has the highest percentage of companies (86%) that see sustainability as a way to create value. In LATAM, more than other regions, 88% expect climate-related business risks over the next five years, but 67% still see sustainability as a value opportunity.

The Sustainable Signals series was launched in 2015 and measures the views of individual investors, institutional investors and corporates on sustainable investing. View the full results of the latest survey here.

About Morgan Stanley

Morgan Stanley (NYSE:MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

About Morgan Stanley Institute for Sustainable Investing

The Morgan Stanley Institute for Sustainable Investing (The Institute), established in 2013, aims to accelerate the growth and adoption of sustainable finance across capital markets. The Institute produces thought leadership and develops partnerships and programs to inform and empower clients, investors and the next generation of sustainability leaders. For more information about the Morgan Stanley Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

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