European institutional investors are intensifying their focus on sustainability and energy transition opportunities despite persistent geopolitical tensions, inflationary pressures and broader market volatility, according to new global research from IFM Investors.
The latest edition of PM700, IFM Investors’ annual survey of 700 senior investment professionals across 19 countries, shows that investors in Europe, the Middle East and Africa maintain the strongest global commitment to sustainability. Eighty‑one per cent of EMEA respondents identify the energy transition as a long‑term source of attractive private market opportunities, compared with 72 per cent globally.
The findings indicate that sustainability is becoming embedded within core investment decision‑making rather than treated as a standalone theme. Environmental and renewable energy assets rank among Europe’s most attractive private market opportunities, with 38 per cent of European investors placing them in their top three areas for future investment, compared with 30 per cent globally. Only advanced technologies ranked higher among European respondents.
The research also highlights the increasingly complex environment in which investors are operating.
- 55 per cent of European investors cite geopolitical instability as a leading portfolio risk.
- 51 per cent identify inflation as a significant concern.
- 68 per cent of EMEA investors are concentrating private market allocations closer to home, primarily in Western Europe.
Sustainability, energy security and resilience converge
PM700 shows that European investors increasingly view sustainability, energy security and long‑term resilience as interconnected priorities. Infrastructure continues to play a central role, with 63 per cent of global respondents planning to increase infrastructure equity allocations over the next three to five years. Investors are turning to infrastructure for both defensive portfolio characteristics and exposure to long‑term structural trends including the energy transition, digitalisation and artificial intelligence.
Technology and sustainability are also becoming more closely aligned.
- 71 per cent of global investors believe exposure to megatrends such as AI, digitalisation and the energy transition will be essential to achieving future return objectives.
- 61 per cent believe private markets offer superior access to those opportunities compared with public markets.
As demand for power, digital infrastructure and energy networks accelerates, sustainability considerations are expanding beyond climate to encompass a broader spectrum of long‑term risks and opportunities. These factors are expected to support value creation in infrastructure and contribute to future economic growth, competitiveness and resilience.
Commentary from IFM Investors
Maria Nazarova‑Doyle, Global Head of Sustainable Investment at IFM Investors, said the findings underscore the durability of Europe’s sustainability focus.
“The notable finding is not that European investors focus on sustainability. It is that their focus remains exceptionally strong despite ongoing geopolitical tensions, inflation concerns and broader market uncertainty.”
She added that sustainability, energy security and long‑term economic resilience are increasingly viewed as complementary objectives.
“The transition to a lower‑carbon economy continues to drive significant value creation opportunities across energy, infrastructure and private markets.”
Nazarova‑Doyle noted that sustainability has shifted from a differentiator to a baseline expectation of sound portfolio management.
“Investors are increasingly looking for managers that can demonstrate credible, measurable sustainability value creation as part of their strong investment track record.”
She emphasised the central role of infrastructure in future portfolios.
“Whether investing in renewable energy generation, electricity networks, digital infrastructure or energy security, investors increasingly recognise that many of the world’s most lucrative investment opportunities require structured long‑term stewardship to generate returns and manage systemic risks.”
About IFM Investors
IFM Investors is a global asset manager, founded and owned by pension funds, with capabilities across infrastructure equity and debt, private equity, private credit, real estate and listed equities. Its purpose is to invest, protect and grow the long‑term retirement savings of working people.
The firm manages approximately US$201.7 billion in assets (as of June 2026) and serves more than 750 institutional investors worldwide. IFM operates from 13 offices across Australia, Europe, North America and Asia.
News sourced from: https://www.ifminvestors.com
Photo by Ricardo Gomez Angel on Unsplash
—
Want to know more about decarbonization, sustainable industry trends, and the breakthroughs driving real change? Explore the complete lineup of Industry Link’s 2026 events below:
Cementitious Materials International Technical & Trade Congress – Europe
28–29 October, Brussels, Belgium
A leading EMEA gathering on cementitious materials, market trends, regulatory updates, and regional opportunities.
Women in Cement and Construction International Congress 2026 – EMEA
30 October, Brussels, Belgium
A dedicated forum advancing diversity, equity, and inclusion across the cement and construction sectors.
Sustainability Conference and Exhibition to include Industry 5.0 – Smart Solutions for Cement and Construction Conference and Exhibition 2026 in São Paulo (World Trade Center)- will convene leading voices from across the global construction, engineering, and infrastructure sectors to address the urgent challenges of decarbonization, embodied carbon reduction, and climate resilience. As the sector undergoes a massive digital shift, this event also focuses on the technologies defining the next generation of building: AI-driven operations, advanced manufacturing, robotics, and human-centric industrial transformation.
Speakers include:
Álvaro Lorenz – Global Director of Sustainability, Votorantim Cimentos
Vanessa Castro, Sustainability, Cementos Argos
Luciana Arouca – Head of Sustainability Services Brazil & LATAM, JLLAna Lúcia Grizzi – Senior Independent Consultant; Coordinator of the Sustainability and Innovation Committee, Votorantim Cimentos
Josilene T. V. Ferrer – Senior Analyst of International Cooperation and Climate Change, CETESB – Environmental Company of the State of São Paulo
Carla Leal – CDP Market Director for LATAM | Board Members
Patrícia Iglecias – Associate Professor, Faculty of Law, University of São Paulo
Juan Padial – Managing Partner, Digital Supply Chain, KPMG
Felipe Salgado – Managing Partner of Decarbonization, KPMG
Rejane Afonso – Technical and Commercial Director, Monitore
Edilson Júnior – Manager of Innovation and Industrial Technology, Cimento Nacional
Cementitious Materials International Technical & Trade Congress – MEA
8–9 December, Morocco
The premier MEA event for cementitious materials, innovation, and regional trade opportunities.
Sign up to our newsletter on industrylink.eu to receive the latest news and future events info as well as exclusive pricing. Follow our LinkedIn page for news and insights for the next events.
