Sustainability Signals: How Companies are Integrating Long-Term Value Strategies in 2025

Morgan Stanley’s latest report, entitled “Sustainable Signals: Corporates 2025,” unveils substantial trends and insights into the manner in which companies on a global scale are incorporating sustainability into their long-term strategies. The report is based on a survey conducted in March and April 2025, involving over 300 companies worldwide, both public and private, with revenues exceeding $100 million.

A salient finding is that 88% of companies regard sustainability as a potential driver of long-term value, representing an increase of three percentage points from 2024. This underscores a mounting cognisance of the strategic significance of sustainability in cultivating resilient and future-oriented enterprises.

A survey of companies reveals that the majority of them are able to measure returns on investment (ROI) for sustainability-related projects. The capacity to quantify the merits of sustainability initiatives is imperative for substantiating ongoing investment and exemplifying the substantial value these projects confer to the organisation.

The report also indicates that over half of the companies have experienced physical climate-related impacts in the past year. In response to this initiative, 80% of the companies have indicated their willingness to enhance their resilience measures. This proactive approach emphasises the significance of sustainability in mitigating the risks associated with climate change.

The perception of sustainability’s value is subject to variation across different regions and industries. A substantial increase in perceived value creation was reported by North American and European companies, with a nine-point and ten-point rise respectively from 2024. Conversely, companies in the Asia-Pacific region have adopted a more risk-based approach to sustainability.

Industries such as utilities, consumer staples, real estate, materials, and financials are more inclined to view sustainability as a value creation opportunity. Conversely, sectors such as information technology, industrials, energy, and communications services are more likely to regard sustainability as a tool for both value creation and risk management.

Sustainability as a key component of long-term strategies

The “Sustainable Signals” report, published by Morgan Stanley’s Institute for Sustainable Investing, offers a comprehensive overview of the increasing recognition among companies of sustainability as a fundamental element of their long-term strategic planning. The capacity to evaluate return on investment (ROI), the emphasis on resilience, and the regional and industry-specific insights all point to a future in which sustainability is intrinsic to corporate success.