Sustainable Investing and ESG Factors in 2025: Navigating a Shifting Landscape
This is part one of a multi-part series exploring the State of Impact Investing in 2025.
In 2025, ESG factors and sustainable investing are facing unprecedented headwinds—and new opportunities. From regulatory rollbacks in the US to shifting rhetoric and resilient investor demand, values-aligned investors must navigate a fractured, politically charged terrain.
Attacks on Environmental, Social, and Governance (ESG) investing, Diversity, Equity & Inclusion (DEI) and climate solutions initiatives and regulations like the Inflation Reduction Act and the Greenhouse Gas Reduction Fund will continue to reverberate through the industry for the foreseeable future. In this piece, I will share some of the areas where we are seeing significant changes that values-aligned investors may wish to pay close attention to as we move into the second half of 2025.