Sustainability as a Core Business Opportunity: Key Insights From Morgan Stanley 2025 Survey
Overview
Morgan Stanley’s latest Sustainable Signals: Annual Global Survey of Corporates 2025 report confirms a pivotal shift in how global companies view sustainability. The findings reveal that sustainability is no longer treated as a compliance requirement or a reputational risk, it is increasingly seen as a core driver of long-term value creation.
According to the survey, 88% of large corporations (with revenues exceeding $100 million) now recognize sustainability as a value opportunity. More than half (53%) view it primarily as a value-creation lever, while 35% regard it as both a value driver and a risk mitigation strategy. Only 12% still view sustainability primarily through a risk-management lens, indicating a clear directional change in corporate strategy.
Photo from Morgan Stanley
Quantifying ROI and Financial Performance
Eighty-three percent of surveyed companies report being able to quantify the return on investment (ROI) of their sustainability initiatives in the same way they would evaluate conventional capital projects. Executives expect sustainability efforts to contribute meaningfully to the bottom line over the next five years.
Anticipated financial benefits include:
Increased profitability
Revenue growth
Lower cost of capital
Enhanced cash flow stability
These figures underscore the growing alignment between sustainability and financial performance.
Progress and Persistent Challenges
Companies still face obstacles in fully realizing the benefits of their sustainability agendas. On the progress front, 65% of companies state their sustainability strategies are meeting or exceeding expectations, which is up from 59% in the previous year.
However, the most commonly cited barriers include:
High upfront investment costs
Political and macroeconomic uncertainty
Difficulty in measuring sustainability performance
Despite these challenges, many companies are investing in resilience. More than half experienced climate-related disruptions in the past year, including extreme weather events, wildfires, and flooding. Encouragingly, over 80% of companies report being at least somewhat prepared to manage future climate-related risks.
Key Enablers of Sustainable Growth
The survey identifies several key factors enabling companies to pursue sustainability more effectively:
Technological innovation was cited by 33% of respondents as the top enabler of sustainable progress.
Economic and operating environment was highlighted by 32% of North American respondents.
Shifting customer demand is driving change for 28% of companies globally.
Why This Matters
Strategic Integration: Sustainability is becoming a fundamental component of business strategy, not a peripheral initiative.
Financial Accountability: Companies are increasingly able to measure the financial impacts of their sustainability work, lending credibility to ESG-related investment.
Resilience Planning: As climate events become more frequent, the ability to anticipate and adapt to disruptions is a growing competitive advantage.
Innovation and Market Forces: Advancements in technology and shifts in consumer expectations are accelerating the pace of sustainable transformation.
Looking Ahead
To remain competitive and resilient, companies should:
Embed ESG metrics into corporate performance frameworks and financial models
Scale up technology-driven sustainability solutions
Invest in climate risk management and scenario planning
Engage internal and external stakeholders with transparent reporting
Tailor sustainability strategies to regional and sector-specific challenges
Morgan Stanley’s 2025 corporate sustainability survey makes it clear tha companies are moving beyond rhetoric and are beginning to treat sustainability as both a financial and strategic imperative. As sustainability continues to shape global markets, organizations that align their operations, investments, and innovation efforts with long-term environmental and social value will be best positioned to lead.