60% of institutional investors and managers believe the UK government is on track to meet its ambitious goal of reducing emissions by 68% by 2030, according to a recent survey conducted by Pensions for Purpose. The poll results were conducted among asset owners and managers representing over $11 trillion of assets under management, with UK pension funds accounting for $438 billion.
Charlotte O’Leary, Chief Executive Officer of Pensions for Purpose said: “It’s clear industry leaders believe in the potential for real progress. However, the 40% who voiced concerns remind us there is still significant work to be done to overcome challenges like economic pressures and implementation hurdles. Collaboration between investors, businesses and policymakers will be needed to ensure we meet these targets and also drive the broader transformation toward sustainable finance. The growing interest in impact investing and place-based opportunities highlights the industry’s commitment to creating financial returns and meaningful, lasting positive impact.”
The wider survey results reflect optimism and caution, offering a glimpse into the opportunities and challenges facing the industry.
Confidence in Impact
There is strong confidence within the industry that impact investing will see significant growth in the next decade. Currently accounting for just 1% of total AUM in the UK, impact investing is expected to expand significantly. A large portion of attendees shared this optimism, with 45% predicting it will account for 3-5% of AUM by 2030. Meanwhile, 35% foresaw an even larger increase, anticipating that impact investing could rise to 5-10% of AUM, and 20% of participants believed growth could reach as high as 10-15%.
Charlotte O’Leary continued: “This widespread belief that impact investing will move from niche to mainstream reflects the increasing demand for investments that align with environmental and social goals. The diversity of opinions also highlights the dynamic nature of the sector, with different regions and sectors likely to experience varying levels of adoption and integration.”
Place-based investments grow in momentum
One of the most exciting trends to emerge from the survey was the increasing interest in place-based investments, which focus on addressing local economic and social challenges. Investors indicated a strong shift toward this approach, with 30% of participants considering place-based investments in the next year. Additionally, 25% of attendees reported they have already allocated funds to such opportunities, while 20% said their organisations currently offer place-based investment solutions. This growing momentum reflects a broader industry trend toward investments which generate financial returns while delivering measurable impact at the community level.
Infrastructure and nature-based solutions lead preferences
When asked about the most attractive sectors for place-based investments, infrastructure emerged as the top choice, selected by 35% of respondents. This reflects the importance of infrastructure in community development, offering long-term impact and stable financial returns.
Nature-based solutions, chosen by 30%, also gained strong support, highlighting the rising interest in investments that promote biodiversity and combat climate change. Meanwhile, 25% of participants identified real estate as an area of interest, particularly in sustainable and affordable housing solutions.
These preferences demonstrate the industry’s holistic approach to community development, with investors seeking to address social challenges like housing, while also focusing on environmental issues such as reforestation and ecosystem restoration.
The Symposium culminated in the Pensions for Purpose Annual Awards, which recognise the outstanding contributions of organisations and individuals committed to aligning financial returns with real-world impact. The winners and runners up of each category were as follows:
Content Awards
- Best Strategy Award: Winner: Newcore Capital Management,
Highly Commended: Isio, LCP, Big Issue Invest - Best Climate Action Award: Winner: Ninety One
- Best Biodiversity Impact Award: Winner: Franklin Templeton
- Best Place-Based Impact Award: Winners: Octopus Investments and The Good Economy
- Best Impact Report Award: Winner: WHEB,
Highly Commended: Montanaro Asset Management, Ninety One
Pension Fund Awards
- Best Biodiversity Statement: Winner: Wiltshire Pension Fund, Highly Commended: Environment Agency Pension Fund
- Best Climate Change Policy Award: Winner: Border to Coast Pensions Partnership, Highly Commended: Wiltshire Pension Fund
- Best Place-Based Award: Winner: Greater Manchester Pension Fund
- Impact Principles Adopter Award: Winner: Surrey Pension Fund,
Highly Commended: Smart Pensions - Outstanding Community Member Award: Winner: Jupiter Asset Management, Highly Commended: WHEB, LCP
Charlotte O’ Leary commented: “These awards highlight the incredible work being done to integrate financial returns with positive impact. This year’s winners have shown leadership in areas such as climate action, biodiversity and place-based investments. Their efforts are pushing the boundaries of responsible investment and setting new standards for the industry. Congratulations to all the winners and highly commended entries for driving positive change in sustainable finance.
“Further, our Outstanding Community Member Award winner went to Jupiter Asset Management, recognised for their contribution to important DE&I research within the UK pensions community. This research shows asset owners have made significant progress in embedding DE&I within their organisations, the next frontier is ensuring these principles extend meaningfully into portfolio companies. Like climate action, success in DE&I requires both commitment and practical implementation across the investment chain.”
