The 30th anniversary of the 2025 US SIF Trends Report arrives at a pivotal and unique moment for sustainable investing in the United States. The past year has seen extraordinary volatility in policy, regulatory, and market landscapes. Despite political retrenchment, deregulatory headwinds, and heightened scrutiny of sustainable investing approaches, investors continue to demonstrate a deep and resilient commitment to strategies linking financial performance with long-term value creation and risk management.
Investors are navigating an inflection point. The US administration has implemented cuts to the Inflation Reduction Act’s clean energy tax credits, while the proposed elimination of the Environmental Protection Agency’s (EPA) Endangerment Finding and Greenhouse Gas (GHG) Reporting Program threatens the foundational data needed to assess climate-related financial risk. Yet states like California are advancing climate disclosure frameworks that could become de facto national standards.
Shareholder dynamics are also in flux. The US Securities and Exchange Commission’s (SEC) revised interpretations under Rule 14a-8 have led to fewer environmental and social proposals reaching ballots. Environmental, social and governance (ESG) practices also continue to be a political flashpoint at the state level, with legislatures seeking to restrict its use in investment decisions. Meanwhile, proxy advisory firms face new disclosure mandates and litigation.
Still, client demand tells a consistent story: investors want sustainable options that align with their values and financial objectives, including 99% of Gen Z and 97% of Millennials. For them, sustainable investing is not a niche – it’s the standard. And global institutional investors continue to demand credible, data-driven approaches that price in climate risk, measure social impact, and address governance integrity.
Opportunities are expanding across private markets, where capital is flowing toward the energy transition, community development, and inclusive economic growth. Investors are targeting solutions to systemic risks – from climate impacts and biodiversity loss to governance concerns over data privacy and AI. Even as federal support for community-finance programs ebbs, innovative partnerships between private capital and mission-driven enterprises are filling critical gaps.
This is the first year our findings are released annually, not biennially. In a time of disruptive change, we felt it important to take the pulse of the industry. With decades of impactful history behind it and a foundation built on uncovering opportunities for returns and impact, sustainable investing has matured beyond political cycles. However, the regulatory playing field is evolving even as sustainability factors grow ever more material to financial outcomes.
US SIF and our members remain steadfast in our mission to align our financial systems with long-term resilience. Through our research, partnerships and education, we will continue to defend the freedom to invest and to demonstrate that sustainability and fiduciary duty are inseparable pillars of sound investment practice.
