2026 Market View: Impact

Dec 04, 2025

My-Linh Ngo, Senior Director & Impact-Aligned Strategist, and Tom Moulds, Managing Director and Senior Portfolio Manager, summarise the market in 2025 for impact investing, and give their thoughts for 2026.

  • 2025 proved a strong year for sustainable investing, with robust demand for ESG products in Europe and globally, particularly among younger investors, despite perceptions of volatility.
  • Fixed income as a whole benefited from higher yields, spread tightening, and credit demand, driven by sectors aligned with sustainability and improving quality in green, social, and sustainability bonds.
  • Macro challenges shifted government focus to short-term priorities like security, slowing sustainability progress, though renewable energy milestones and policy advancements for nature highlighted ongoing opportunities.
  • The 2026 outlook anticipates continued tailwinds for fixed income and sustainable investments, supported by attractive yields, potential rate cuts, and sector innovations, with expectations for broader government engagement on sustainability issues.


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