In today’s investment landscape, large institutional investors are increasingly matching capital with a clean energy future. A recent Mercer Investment study of 74 large asset owners– with more than $2 trillion in assets–found that 70% now integrate responsible investment goals into their strategies, a seven percentage jump from last year.
Despite shifting rhetoric in some corners of the market, momentum continues to build. The Mercer study underscores this powerful trend—a growing majority are not only setting clear responsible investment goals, they’re also increasing how much they allocate to those investments.
Responsible Investment Goals Now Central to Portfolio Strategy
From New York to Oregon to Ontario, asset owners– the investors that include pension funds, endowments, insurers, sovereign wealth funds, and wealth managers–are making clear that managing climate risk and seizing investment opportunities are central to long-term fiduciary duty. In 2025, that’s translating into investors pouring more capital into climate solutions at scale, reporting progress on portfolio emissions, and supporting public policies that enable a future-ready economy.
Major Pension Funds Raise Expectations for Asset Managers
Across North America, public officials and investment leaders are raising the bar for themselves– and the asset managers they do business with.
In April, New York City Comptroller Brad Lander, who oversees the city’s pension funds, laid out clear transition plan expectations for investment managers. Asset managers working with the New York City Employees Retirement System, the Teachers Retirement System, and Board of Education Retirement System must deliver credible, detailed transition plans—or he would recommend putting those managers’ investment mandates out to bid.
Highlighting the financial stakes for states and the public funds they manage, Maryland’s state comptroller released a report in April on how inaction on extreme weather issues is straining the state’s economy and budget. Economic impacts include workforce disruptions, agricultural losses, tourism declines, supply chain disruptions, infrastructure damage, and loss of essential services.
And underscoring the critical role of policy advocacy in helping asset owners meet their fiduciary duty, Oregon State Treasurer Elizabeth Steiner backed state legislation introduced in January to strengthen the Treasury’s ability to manage risks. The bill supports the Treasury’s ability to pursue the near- and long-term investment strategies needed to reduce climate-related investment risks and protect the Oregon public employee retirement fund.
Momentum is also strong north of the border. In February, a group of Canadian asset owners representing CAD 53 billion issued a call for the country’s financial institutions to stay committed to their net zero goals and to translate them into robust action plans–essential for maintaining a competitive and stable financial system.
The consequences of wavering on climate action are also becoming increasingly tangible.
European Investors Reconsider U.S. Exposure
Major European investors are reassessing their exposure to U.S. asset managers amid concerns about declining policy certainty and a perceived erosion of leadership in the clean economy. Dutch pension fund PME, which manages €57 billion, is reviewing a €5 billion mandate with BlackRock following its exit from a key responsible investing group. Meanwhile, Amundi, Europe’s largest asset manager, noted last month that clients have “massively repositioned” to avoid U.S. markets, driven by unease over inconsistent clean economy policy signals and other geopolitical concerns.
The message from institutional investors in 2025 is clear: climate strategy is foundational to fiduciary duty. As stewards of long-term capital, asset owners are not just adapting to a changing world; they’re shaping it.