Some 88% of global firms see sustainability as a way to create long-term value, a new report by the Morgan Stanley Institute for Sustainable Investing has found.
According to Morgan Stanley’s Sustainable Signals report, the majority of firms around the world continue to see sustainability as either primarily (53%) or partly (35%) a driver of long-term value creation, up three points on the previous year.
Just 12% of companies view sustainability through a risk management lens, down from 15% in 2024.
Elsewhere, the study, which surveyed more than 300 public and private companies across North America, Europe and APAC, found that most companies (83%) also say that they are able to quantify returns on their sustainability-related investments, in the same way as other initiatives.
Long-term value creation
“The data suggest that sustainability remains central to long-term value creation,” commented Jessica Alsford, chief sustainability officer and chair of the Institute for Sustainable Investing at Morgan Stanley. “Companies around the world report an alignment between corporate strategies and sustainability priorities as they seek to build resilient, future-ready businesses.”
More than half of respondents said that they experienced an impact on operations from physical climate-related events, with those in APAC (73%) citing the highest incidence.
Climate risks
Climate-related impacts cited included extreme heat (55%) and extreme weather or storms (53%), with these events most commonly involving increased costs (54%), operational interruptions (40%), and revenue losses (39%).
More than two-thirds of all respondents said that they anticipate further negative impact from climate risks, however more than two thirds feel either ‘very’ or ‘somewhat’ prepared to increase resilience.
On a regional basis, respondents in the MENA region showed the strongest belief in sustainability as a value driver (86%), and LATAM reported the highest expectations of climate-related business risks (88%) over the next five years. Read more here.
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