Over a third of top managers focus on environmental and species diversity concerns, with their operations primarily based in Europe.
Europe continues to dominate the global sustainable finance landscape, managing around 83-84% of the world’s Environmental, Social, and Governance (ESG) assets and sustainable funds. This commitment to sustainability is evident in the EU's regulatory framework, with the Sustainable Finance Disclosure Regulation (SFDR) being actively revised to simplify and sharpen sustainability reporting.
In contrast, the United States has experienced a marked political backlash against ESG investing, particularly since the return of Donald Trump’s administration in 2025. This unfavourable environment has led to a retreat from climate alliances and a reduction in ESG focus among some leading asset managers. Regulatory rollbacks, such as the stopping of support for the Climate Disclosure rule and the reconsideration of the repeal of the Investment Duties rule, have further weakened the commitment to net zero and climate targets.
European asset managers emphasise stewardship and long-term value creation with sustainability and biodiversity as integrated pillars of their investment strategies, supported by evolving regulations and investor demands. In the U.S., the focus has shifted away from aggressive climate commitments due to political and regulatory pressures, with some leading asset managers deprioritising biodiversity and climate practices to avoid political fallout.
Despite some funding dips in climate technology equity in early 2025, Europe maintains robust policy support and is expected to recover, with increasing interest in emerging technologies like hydrogen and carbon capture. U.S. investment in climate tech has declined, particularly in more mature technologies, although investments in AI-driven climate solutions remain strong and predominantly U.S.-based.
The survey results indicate a trend towards more sustainable finance practices in Europe, with 87% of the surveyed asset managers having defined metrics and targets for climate change. In comparison, the United States has the highest percentage of investment managers with low ESG scores, with 13%. The gap between the US and Europe in sustainable finance practices is narrowing, but a significant divergence remains, especially regarding climate change and biodiversity practices among asset managers.
The survey, conducted by the consulting firm Prometeia in its fourth edition of the "Sustainable asset management survey", involved a sample of approximately 50 international asset managers, representing a total of €26 trillion in assets under management. The results suggest a need for improvement in sustainable finance practices in the United States, with only 47% of the surveyed asset managers having defined metrics and targets for biodiversity, compared to 84% for climate change.
In conclusion, Europe remains the global leader in sustainable finance focused on climate change and biodiversity, supported by robust regulations and investor engagement. The United States, however, is currently experiencing a political and regulatory headwind that has caused many asset managers to reduce their climate and sustainability commitments. However, interest in ESG continues globally, suggesting potential for future evolution in both regions.
- The commitment to sustainability and environmental science in Europe's financial sector is significantly stronger than in the United States, with European asset managers prioritizing stewardship, long-term value creation, and integrating sustainability and biodiversity into their investment strategies.
- In contrast, the political climate in the United States has led to a retreat from climate alliances, reduction in ESG focus among some leading asset managers, and regulatory rollbacks, such as the stopping of support for the Climate Disclosure rule and the reconsideration of the repeal of the Investment Duties rule.
- The survey results show a trend towards more sustainable finance practices in Europe, with a higher percentage of asset managers having defined metrics and targets for climate change and biodiversity compared to the United States, where a larger number of investment managers have low ESG scores. This gap between the US and Europe in sustainable finance practices, particularly regarding climate change and biodiversity, remains significant.
