Climate change is becoming a more significant consideration for investors, with a large majority expecting physical climate risks to affect asset prices over the coming decade.

According to the 2026 Global Climate Investing Survey, 82% of investors expect physical climate risks to have a moderate or significant impact on asset prices over the next 10 years, including 46% who anticipate a significant impact. Over the next five years, 66% expect physical climate risks to affect asset prices.

The survey, conducted among 300 institutional and wholesale investors across Europe, North America, Asia-Pacific and South Africa, represents more than $35 trillion in assets under management. The findings indicate that investors are increasingly assessing climate change as a financial and portfolio risk rather than solely as a sustainability issue.

Physical climate risks are also expected to influence investment decisions more broadly. The survey found that 63% of investors expect these risks to affect strategic asset allocation over the next five years, while 57% anticipate an impact on asset manager selection and 59% on stock picking.

Climate change has also regained importance as an investment-policy priority. 47% of respondents said climate change is significant or central to their investment policy, up from 46% in the previous year. This marks the first increase in this measure since 2022.

At the same time, investor interest in climate-focused opportunities remains relatively strong. 60% of respondents expect to increase allocations to investments that actively address climate change over the next three years, while 59% believe demand for climate mitigation solutions will remain strong regardless of political sentiment.

The findings highlight a growing recognition that physical climate impacts can translate into financial consequences through asset values, investment strategies and capital allocation. As climate-related risks become more visible, investors are increasingly considering them as part of long-term financial decision-making.