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ESG Investors reveal their top ESG investment themes and more

Jessica Ground

18 November 2025

At a time of macroeconomic and geopolitical uncertainty, our fifth annual ESG Global Study finds that most investors remain committed to considering ESG issues in the investment process.

 

Identifying investment opportunities is one of the top drivers for ESG adoption, and energy transition is one of three investment themes where more than half of global respondents say they have strong conviction.

 

This year’s survey also shines a light on how thinking about AI-related risks and opportunities is evolving. I’ll share a bit more detail on these topics below as well as a link to the full report for those who want to go deeper and explore many other fascinating global and regional findings. 

Globally, investors favor energy transition most, while water rises to the top in North America 

Six in 10 respondents have strong conviction in investment opportunities related to energy transition. Clean water and sanitation and health and well-being are also popular, viewed by more than half of the respondents as high-conviction themes.

 

Investors in different regions have nuanced views on these themes. Investors in EMEA and APAC are more attracted to opportunities linked to energy transition than their North American peers. Respectively, 66% of EMEA respondents and 59% of APAC investors report to have strong conviction in the theme. In North America, water is the top choice, followed by energy transition. 

Share of respondents with strong conviction in the following themes

Note: The graphic shows the share of respondents with strong conviction in each investment theme. Respondents are asked to rate their conviction in each theme on a scale of 0 to 10, with 0 representing no conviction and 10 representing the strongest conviction. Strong conviction includes scores 7 to 10. 

Within the broad theme of energy transition, respondents globally are most attracted to the long-term investment opportunities presented by energy efficiency (63%) and energy infrastructure or grid modernization (61%).

 

Three-quarters of North America respondents have strong conviction in energy infrastructure or grid modernization, the highest among three regions. They also have the highest conviction in nuclear power. Survey respondents have less conviction in renewable power (55%), possibly reflecting concerns over decreasing expected return and uncertain policy.

AI’s environmental impact in sharper focus, as is its potential to drive energy transition

Compared to last year, respondents are more concerned about environmental risks associated with AI. More than 70% of respondents identify energy consumption and increased greenhouse gas emissions as the most material AI-related ESG risks over the next 2 to 3 years, up from 54% last year.

 

More than 40% of respondents see increased water consumption as the most material AI-related ESG investment risk over the next 2 to 3 years, up from 18% last year.

 

AI’s energy-intensive nature clearly has many investors worried, but more than half of the respondents are also hopeful that AI can help accelerate energy transition by fueling innovation in decarbonization solutions, which could contribute to attractive investment opportunities in transition solutions as early as in the next 2 to 3 years.

 

Regional attitudes differ here as well. North America has the highest share of respondents (62%) identifying AI’s energy consumption as a threat and the lowest share of respondents (48%) believing that AI will help with energy transition. In comparison, 60% of investors in EMEA see the rise of AI as spurring innovation benefiting energy transition. 

Top 3 AI-related ESG investment risks over 2 to 3 years

The bottom line

One of the main impressions that I take from our survey is how ESG has shown resilience amid macroeconomic and geopolitical uncertainties. Undoubtedly, many of the 1,130 institutional investors and intermediaries surveyed are recalibrating their ESG approach as the policy and regulatory landscape shifts. And yet, most of them still clearly see unearthing ESG-related opportunities and managing material ESG risks as advantageous to their investment process. 

Read the report

Interested in learning more about today’s most compelling thematic investment opportunities? Explore how Capital Group is investing for future generations

Jessica Ground is global head of ESG at Capital Group. She has 27 years of industry experience (as of 12/31/2024). She holds a bachelor's degree in history from Bristol University and is a member of the CFA Institute.

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