The Capital Group ESG Global Study 2025 reveals that whilst global adoption of environmental, social, and governance (ESG) strategies has slightly declined from its peak, it remains robust, particularly in the Asia-Pacific (APAC) region. The study, which surveyed 1,130 global investors, highlights that 97% of existing APAC investors plan to maintain or increase their ESG allocations in the next year.
Globally, ESG adoption stands at 87%, a slight decrease from the 90% recorded in 2023 and 2024. Despite this, APAC leads in engagement with asset managers on nature-related issues, with 71% of respondents involved. Additionally, 68% of APAC investors have invested or plan to invest in thematic funds addressing nature-related issues.
The study also notes a significant increase in ESG approaches within private markets, with 48% of global respondents now applying these strategies—the highest since the study’s inception in 2021. Key investment themes identified include energy transition, clean water, and health, with six in 10 investors expressing strong conviction in these areas.
Artificial intelligence (AI) has emerged as a focal point, with 73% of investors identifying its energy consumption and greenhouse gas emissions as top ESG risks. Despite these concerns, 56% believe AI could drive innovation in energy transition.
Jessica Ground, Global Head of ESG at Capital Group, stated, “This year’s ESG Global Study highlights the enduring role of ESG in the investment process as investors continue to evolve their approach.”
