Nearly all (93 per cent) of UK and European institutional investors, including pension funds, have expressed significant unease over the future of sustainability practices under a Trump presidency, research from Pensions for Purpose has revealed.

The inaugural Impact Lens Survey Shorts found that while no respondents indicated that US sustainability practices “critically” shape their strategies, 83 per cent reported some level of influence, with 22 per cent citing a significant impact and 39 per cent noting a moderate impact.

In addition to this, less than a fifth (17 per cent) said that US sustainability developments have no influence on their investment decisions, which Pensions for Purpose highlighted as demonstration of a prevailing awareness of America’s role in shaping global environmental, social and governance (ESG) trends.

However, the survey also found that, despite these concerns arising from across the Atlantic, there is a growing commitment among UK and European institutional investors and asset managers to sustainable investing.

Indeed, more than half (58 per cent) of respondents said they plan to increase their impact allocations over the next 12 months, rather than decrease them or keep them at the same level, reflecting a positive commitment and optimism for the returns of these assets.

Just over two fifths (42 per cent) expect to maintain current levels, while notably, no respondents intend to decrease allocations.

The survey also found that nearly two thirds (61 per cent) of organisations have set or are planning to set specific targets for impact investments, although 39 per cent currently lack such plans, pointing to an opportunity for greater engagement and education.

Pensions for Purpose research manager, Bruna Bauer, highlighted the results of the inaugural survey as "both encouraging and eye-opening".

"The fact that 93 per cent of investors are concerned about the state of sustainability in the US, combined with the significant influence of US developments on their strategies, highlights the interconnected nature of sustainability in today’s global economy," Bauer continued.

"At the same time, that no one is planning to decrease their impact allocation over the next 12 months is interesting. There is clearly strong momentum to increase sustainability allocations, which reflects the resilience and commitment of institutional investors to driving meaningful change.”

This article originally appeared on our sister title, Pensions Age.

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