A new survey of global investors has found that almost seven in ten 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.

The research reveals that most investors worldwide don’t feel recent policy changes will prevent the energy transition and that investors see a significant upside in the shift to a low-carbon economy, with more than two-thirds (68 per cent) of respondents drawn to energy transition-focused infrastructure funds. More than seven in ten investors are now prioritising climate and transition risks, while more than two thirds of investors prioritise biodiversity and nature-related risks.

The research also found that investors now view sustainability as integral to their private market strategies, with 70 per cent 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.

Maria Nazarova-Doyle, global head of sustainable investment at IFM Investors said: “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.”

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