While investors increasingly recognise climate change as a financial risk, there are significant gaps in action and consistency, shows new report.
Despite 75 per cent of investors incorporating climate risks into their strategies, many lack credible transition plans and interim targets.
Regional disparities and regulatory uncertainties further hinder global climate finance mobilisation.
As the 30th Conference of Parties to the United Nations Framework Convention on Climate Change (COP30) nears, analysis of 220 major investors has shown growing climate awareness and board oversight — but warns of uneven ambition, limited transition plans and regional disparities.
Climate change and environmental risks have moved from moral to material concerns for global investors, according to a new report that assesses how the world’s largest asset owners and fund managers are responding to the climate crisis.
The Global State of Investor Climate Action 2025, released on November 6, 2025 by the founding partners of the Investor Agenda, found that investors now widely view climate risk as a financial risk — with three-quarters incorporating it into governance, risk management and investment strategies.
The report showed growing awareness but uneven execution, with many firms lacking credible interim targets, comprehensive transition plans and consistent disclosure standards.
“Investors are acting on climate risks because they’re real and already material to financial returns,” said Rebecca Mikula-Wright, chief executive of the Asia Investor Group on Climate Change. “But to meet development and climate goals, governments must accelerate big investments into clean energy, resilient infrastructure and next-generation climate solutions — especially in Asia Pacific.”
Climate risks are mainstreamed, but consistency is lacking: Some 75 per cent of investors assess climate-related financial risks and opportunities within their portfolios. The same proportion report board-level oversight of climate strategies, underscoring how sustainability has become embedded in corporate governance.
Transition planning is underway but incomplete: Roughly 65 per cent track and disclose at least one portfolio emissions metric, and 56 per cent publish transition plans or elements thereof. Yet only 51 per cent have adopted net-zero targets for 2050, revealing a shortfall in credible interim milestones and alignment with science-based pathways.
Investment in climate solutions remains limited: Although 70 per cent of investors have made climate-aligned investments, only 30 per cent have committed to scaling up such investments. The report attributes this to regulatory uncertainty, limited green investment pipelines, and insufficient data on emerging markets — especially in Asia and Africa.
Engagement on climate is increasing: Nearly 73 per cent of investors engage with investee companies on climate issues, while 43 per cent are actively engaging governments and regulators on policy. This marks a shift toward systemic influence — but participation remains uneven across regions, with European and Australian investors leading in advocacy and disclosure.
Nature and just transition enter the investor mainstream: The study reveals a growing interest in integrating biodiversity and social equity into climate action. 60 per cent of investors now include nature-related disclosures, while 36 per cent publicly report on just transition considerations such as community resilience, worker retraining, and equitable access to clean energy.
Despite the encouraging trend, the report warned that regional disparities in ambition and transparency could hinder global climate finance mobilisation.
Investors in Europe and Oceania are setting stronger interim targets and using standardised disclosure frameworks, while parts of Asia and North America trail behind due to policy uncertainty and fragmented reporting norms.
“While progress is tangible, the gaps in participation and credibility could slow the global transition,” the report noted, adding that alignment among investors, governments, and regulators is essential to prevent “green finance fragmentation”.
With COP30 in Belem, Brazil just days away, the Investor Agenda urges governments to send clear signals to the financial sector on fossil fuel phase-down, adaptation finance and policy predictability.
“Negotiators at COP30 have a unique opportunity to show markets they’re serious,” said Mikula-Wright. “The stronger the policy signal, the greater the investor confidence to accelerate sustainable development.”
The Investor Agenda’s partners have developed tools such as the Investor Climate Action Plans Expectations Ladder and the Global Investor Statement to Governments on the Climate Crisis, calling for stronger global cooperation and clearer accountability standards.
As trillions of dollars in capital remain poised for deployment, the report concluded that bridging the gap between investor awareness and tangible transition action will determine whether the financial system can truly support a Net Zero and nature-positive economy.
“Climate and environmental risks are no longer abstract — they are shaping investment decisions today,” the report stated. “What happens next will depend on whether ambition turns into measurable action.”