- 53% of investors report deals in the Energy & Environment infrastructure sector have collapsed due to sustainability risks in the past three years
- 73% of investors say sustainability risks influence their investment decisions, second only to geopolitical risk (75%)
- Resource management (57%) regulatory compliance (49%) and climate change mitigation (41%) are the top sustainability concerns impacting deals
London, 9 December 2025 – More than half (53%) of investors have had an Energy and Environment infrastructure deal fall through in the past three years as a result of sustainability risk, according to S-RM’s 2025 Investor Sentiment Report: Forces of Change. This was the highest reported cause of deal failure in the sector, followed by geopolitical (40%) and sanctions (36%) risk.
The report, which surveyed 150 global investors across infrastructure sub-sectors, revealed that although sustainability concerns were the leading cause of deal failure, geopolitical and political risk (75%) plays the biggest role in deal-making decisions in the Energy and Environment sector. Sustainability risks were cited as the second most influential driver, reported by 73% of respondents, followed by regulatory instability (72%) and cyber security (66%).
In comparison to other infrastructure sectors, cyber security – the top risk overall across infrastructure deals (67%) – was less of a concern in Energy and Environment deals, cited by just 33% of investors.
Top sustainability risks affecting Energy and Environment deals
Investors identified several specific sustainability factors that have impacted their investment activity:
| Sustainability risk factor | Total |
| Resource management (including materials, water, waste, and pollution) | 57% |
| Environmental compliance and regulatory adherence | 49% |
| Climate change adaptation and mitigation | 41% |
| Energy use and efficiency | 37% |
| Biodiversity and other environmental impacts | 27% |
Balancing risk and opportunity
Despite these risks, investor sentiment toward the sector remains strong. Three-quarters (75%) rate Energy and Environment infrastructure as an attractive investment opportunity over the next 5-10 years, higher than Social infrastructure (71%) and Transport and Logistics (67%), though slightly below Digital and Telecoms (79%).
Looking ahead, investors expect sustainability risks to remain significant. Over the next three years, 37% anticipate these risks will increase, while 35% expect them to remain the same, signalling a continued focus on sustainability factors during due diligence and deal execution.
Ian Massey, Head of Corporate Intelligence, EMEA at S-RM, said:
Investors in Energy and Environment infrastructure are navigating a sector where sustainability risks are central to deal success. Resource management, regulatory compliance, and climate resilience are increasingly shaping whether deals go ahead, reflecting a broader shift toward responsible and resilient infrastructure investing.”
While sustainability risks can derail deals, they also highlight areas where foresight and strategic planning can create competitive advantage. Investors who integrate sustainability considerations early in the deal process are better positioned to protect value and capitalise on opportunities in a sector that remains highly attractive over the long term. With momentum building going into 2026, from clearer policy direction to accelerating climate innovation, the outlook is increasingly positive for investors ready to back sustainable, high-growth infrastructure.”
The full report, 2025 Investor Sentiment Report | Forces of Change: How deal teams can thrive in an age of instability, is available to download here: https://www.s-rminform.com/investor-sentiment-report-2025
About S-RM
S-RM is a global corporate intelligence and cyber security consultancy. Founded in 2005, they have 400+ experts and advisors across nine international offices, and advise companies ranging from blue-chip corporates to large financial institutions, and beyond.
Methodology
In August 2025, S-RM conducted a global survey of 150 investors across emerging and developed markets in the infrastructure sector, including its four strategically important sub-sectors: transport and logistics, energy and environment, digital and telecoms, and social infrastructure.
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