Interest in sustainable investing among individual investors remains near record highs, but actual portfolio exposure edged lower in 2026 as return expectations, greenwashing concerns and performance dispersion continue to shape allocation decisions.

Despite heightened market volatility and ongoing debates around greenwashing, individual investors remain strongly committed to sustainable investing, according to a report released by the Morgan Stanley Institute for Sustainable Investing. Globally, 92% of individual investors say they are ‘very’ or ‘somewhat’ interested in sustainable investing, up four percentage points from 2025 The report, Sustainable Signals: Individual Investors 2026, h owever, also reveal a gr