NEW YORK–(BUSINESS WIRE<\/a>)– \nWhen asked how sustainability impacts their long-term corporate strategies, 62% now see it as both a value creation and risk management exercise compared to 35% in 2025. Simultaneously, there has been a 31 point decrease in companies viewing sustainability primarily as a value creation opportunity (22% in 2026 versus 53% in 2025).<\/p>\n \nThe external environment poses a greater challenge to corporate sustainability in 2026, with 36% citing macroeconomic uncertainty as a top barrier, up from 15% in 2025. High levels of investment required (39%) and lack of data (30%) rank as the other top barriers. External factors also top the list of reasons why companies are pursuing sustainability strategies, with regulatory compliance and investor expectations both cited as stronger motivators (49% versus 23%, and 42% versus 21%). Value creation remains the other top reason.<\/p>\n \n\u201cOur Sustainable Signals survey shows that corporates around the world continue to see the value of sustainability, but their motivations and concerns have shifted amid a complex operating environment,\u201d said Jessica Alsford, Chief Sustainability Officer and Chair of the Institute for Sustainable Investing at Morgan Stanley. \u201cSustainability is becoming more integrated into core business strategies as macroeconomic uncertainty, rising costs, and regulatory and investor expectations increasingly shape decision-making.\u201d<\/p>\n \nAdditional survey findings include:<\/p>\n \nThe 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, including regional findings, here<\/a>.<\/p>\n About Morgan Stanley About Morgan Stanley Institute for Sustainable Investing Disclosures<\/b><\/p>\n \nThis material was published in May 2026 and has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Morgan Stanley Research Department and is not a Research Report as defined under FINRA regulations. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.<\/p>\n \nMorgan Stanley Smith Barney LLC and Morgan Stanley & Co. 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Certain statements herein may be \u201cforward-looking statements\u201d within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or statements of current conditions, but instead are based on management\u2019s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond our control. In addition, this report contains statements based on hypothetical scenarios and assumptions, which may not occur or differ significantly from actual events, and these statements should not necessarily be viewed as being representative of current or actual risk or forecasts of expected risk. Actual results and financial conditions may differ materially from those included in these statements due to a variety of factors. Any forward-looking statements made by or on behalf of Morgan Stanley speak only as to the date they are made, and Morgan Stanley does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.<\/p>\n \nCertain portfolios may include investment holdings deemed Environmental, Social and Governance (\u201cESG\u201d) investments. For reference, environmental (\u201cE\u201d) factors can include, but are not limited to, climate change, pollution, waste, and how an issuer protects and\/ or conserves natural resources. Social (\u201cS\u201d) factors can include, but not are not limited to, how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance (\u201cG\u201d) factors can include, but are not limited to, how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. You should carefully review an investment product\u2019s prospectus or other offering documents, disclosures and\/or marketing material to learn more about how it incorporates ESG factors into its investment strategy.<\/p>\n \nESG investments may also be referred to as Sustainable investments, impact aware investments, socially responsible investments or diversity, equity, and inclusion (\u201cDEI\u201d) investments. It is important to understand there are inconsistent ESG definitions and criteria within the industry, as well as multiple ESG ratings providers that provide ESG ratings of the same subject companies and\/or securities that vary among the providers. This is due to a current lack of consistent global reporting and auditing standards as well as differences in definitions, methodologies, processes, data sources and subjectivity among ESG rating providers when determining a rating. Certain issuers of investments including, but not limited to, separately managed accounts (SMAs), mutual funds and exchange traded-funds (ETFs) may have differing and inconsistent views concerning ESG criteria where the ESG claims made in offering documents or other literature may overstate ESG impact. Further, socially responsible norms vary by region, and an issuer\u2019s ESG practices or Morgan Stanley\u2019s assessment of an issuer\u2019s ESG practices can change over time.<\/p>\n \nPortfolios that include investment holdings deemed ESG investments or that employ ESG screening criteria as part of an overall strategy may experience performance that is lower or higher than a portfolio not employing such practices. Portfolios with ESG restrictions and strategies as well as ESG investments may not be able to take advantage of the same opportunities or market trends as portfolios where ESG criteria is not applied. There is no assurance that an ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or a dependable measure of future results. For risks related to a specific fund, please refer to the fund\u2019s prospectus or summary prospectus.<\/p>\n \nInvestment managers can have different approaches to ESG and can offer strategies that differ from the strategies offered by other investment managers with respect to the same theme or topic. Additionally, when evaluating investments, an investment manager is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could cause the manager to incorrectly assess an investment\u2019s ESG characteristics or performance. Such data or information may be obtained through voluntary or third-party reporting. Morgan Stanley does not verify that such information and data is accurate and makes no representation or warranty as to its accuracy, timeliness, or completeness when evaluating an issuer. This can cause Morgan Stanley to incorrectly assess an issuer\u2019s business practices with respect to its ESG practices. As a result, it is difficult to compare ESG investment products.<\/p>\n \nThe appropriateness of a particular ESG investment or strategy will depend on an investor\u2019s individual circumstances and objectives. Principal value and return of an investment will fluctuate with changes in market conditions.<\/p>\n \n\u00a9 2026 Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC. Members SIPC. All rights reserved.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260508123262\/en\/<\/a><\/span><\/p>\n
\nGlobally, over 90% of sustainability leaders say their companies continue to execute on their sustainability strategies yet fewer believe they are meeting or exceeding expectations than in 2025, according to a new \u201cSustainable Signals\u201d report by the Morgan Stanley Institute for Sustainable Investing<\/a>. Nearly half (47%) now see room for improvement on progress \u2014 up more than 10 points from the 2025 and 2024 surveys. The survey polled 300 sustainability decision-makers at private and public companies across North America, Europe and Asia Pacific between March and April 2026 to understand how sustainability factors into their business and where they see the greatest opportunities and challenges.<\/p>\n\n
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<\/b>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\u2019s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com<\/a>.<\/p>\n
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<\/b>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<\/a>.<\/p>\n<\/p>\n