So far, 2025 is starting with a distinctly anti-sustainable mood. Donald Trump is about to re-enter the White House and has threatened to roll back the Inflation Reduction Act that spurred huge investment in clean energy.
US banks and investment managers keen to curry favour with the new administration — or at least avoid being targeted — are ditching net zero alliances. While the political mood in the UK and Europe remains supportive of sustainable investment, trust among the public is low and concerns over greenwashing are still high.
Yet money continues to flow into sustainable funds, with a further global net inflow of $10.4bn in the third quarter of 2024, according to data from Morningstar. And the sector is reshaping itself: regulation is clamping down on greenwashing and funds are being forced to explain more clearly to investors what they are trying to achieve.