75% of investors now factor climate risk into financial decision-making.
UNEP warns global efforts fall short to meet 1.5 degrees Celsius climate target.
IMF urges stronger carbon pricing and policy alignment for green investment.
Investors now widely view climate risk as a financial risk, 75% of investors are already incorporating climate-related risks in their governance, risk management and investment strategies, according to the Global State of Investor Climate Action 2025 report.
“Investors are acting on climate risks because they’re real and already material to financial returns,” said Rebecca Mikula-Wright, chief executive of the Asia Investor Group on Climate Change.
Mikula further added that governments must accelerate big investments into clean energy, resilient infrastructure and next-generation climate solutions to meet development and climate goals—especially in Asia Pacific.
The report further revealed several key findings. It stated that climate risks are mainstreamed, with about 75% of investors assessing climate-related financial risks and opportunities within their portfolios. Transition planning is underway but remains incomplete—while 65% track and disclose at least one portfolio emissions metric and 56% publish transition plans, only 51% have adopted net-zero targets for 2050. Investment in climate solutions is still limited, with 70% making climate-aligned investments but just 30% committing to scale them up.
In addition, the report stated that engagement on climate is also growing, as about 73% of investors engage with investee companies on climate issues, with companies and 43% actively engaging governments and regulations on policy. The study also notes that nature and just transition considerations are entering the investor mainstream, with 60% including nature-related disclosures and 36% reporting on social equity.
Need for Stronger Action
The UN Environment Programme’s Emissions Gap Report 2025 cautioned that current global efforts remain insufficient to close the gap between climate pledges and actual emission reductions. It emphasises how the 1.5 degrees Celsius target will become unachievable without increased investment in low-carbon technologies, adaptation and renewable energy.
This result supports the Global State of Investor Climate Action 2025 report's concerns that private finance is important but cannot function alone. In order to encourage significant green investment, the International Monetary Fund (IMF) recently emphasised the importance of transparent carbon pricing and consistent policy frameworks. When taken as a whole, these reports underscore how important it is to match investor aspirations with public policy to translate climate risk awareness into real global impact.
