Impact Investing

December 26, 2025

Trends Report on Sustainable Investing finds assets holding amid headwinds

2025 US SIF Trends Report

Sustainable assets account for 11% of total market AUM; climate and client customization drive activity, while themes like artificial intelligence (AI), biodiversity, and Indigenous People’s rights gather steam.

Trends Report HIGHLIGHTS

• US SIF analysis records the US market size as $61.7 trillion, of which $6.6 trillion (versus $6.5 trillion in 2024) were identified or marketed as sustainable or ESG investments.

• 53% of individuals expect the sustainable investment market to grow over the next year, compared to 73% in 2024.

• Political pushback has moderated, not reversed, ESG activity with nearly half (46%) reporting no impact to how their organization approached sustainability, while 29% said they now focus explicitly on demonstrable financial materiality; one in four have stopped using the ESG acronym.

• Investors are currently prioritizing the areas of the economy with high emissions and investing in the transition including energy, innovation, and transport (with 86%, 76% and 72% invested respectively).

• When it comes to strategies, ESG integration remains the mainstream default with 77% using this approach.

• Looking ahead, impact investing showed the strongest growth runway with 46% saying they expect their organization to increase its impact investing activities over the next three years, followed by sustainability-themed investing (43%) and ESG integration (38%).

On its 30th anniversary in December, the US SIF Foundation’s flagship report, US Sustainable Investing Trends 2025/2026, takes the pulse of the US sustainable investing market and finds that assets have remained steady, even amid political pushback.

Using Securities and Exchange Commission filings, US SIF places the overall US market size at $61.7 trillion, with $6.6 trillion marketed specifically as “sustainable” or “environmental, social and governance” (ESG) investments – a modest increase from $6.5 trillion in 2024, reflecting stable investor commitment. Sustainable assets represent 11% of the overall market size, versus 12% last year, a marginal decline likely due to the increase in the overall value of the market in 2024.

Sixty nine percent of the US market AUM, or $42.7 trillion, was covered by an active stewardship policy.

Launched in 1995, the Trends report has provided the foundational data needed to understand the evolving sustainable investing market for three decades. In partnership with SDGlabs.ai, US SIF reviewed SEC disclosure Forms ADV and 13F, public websites and reporting, and 270 survey responses to create the definitive baseline of the US sustainable investment market.

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Political impact on Sustainable Investing Activity

The evolving dynamics of US politics are shaping investor sentiment and approaches to sustainability in noticeable, if uneven, ways. Rather than a wholesale pullback, the current moment is characterized by adjustment: investors are holding to their sustainability commitments while recalibrating terminology, stewardship practices, and disclosure framing to fit shifting legal and political conditions.

When asked whether certain events or issues affected their decision to increase sustainable investments in 2025 and beyond, 62% said the political environment had no effect on their decision, while 22% said they would increase investments.

“What we’re witnessing is that there has not been a retreat from sustainable investing,” said Maria Lettini, CEO of US SIF. “Over three decades, we’ve seen this industry evolve from a niche concept to mainstream investment approach. The shifts we’re seeing reflect a pragmatic adaptation to the current environment while maintaining focus on the long-term drivers of value and changing market risks and opportunities.”

Climate change (52%), client-driven customized investing (41%), and severity and frequency of catastrophic climate events (38%) were the top issues driving an increase in sustainable investment activities. Loss of biodiversity (34%) and food insecurity (24%) rounded out the top five.

Notably, 23% of respondents indicated that AI was positively affecting their decision on whether to increase sustainable investments in 2025 and beyond. Heightened attention to Indigenous Peoples’ rights (with 16% increasing and 81% maintaining activity) and migration (11% increasing and 87% maintaining) underscores growing focus on social issues at the nexus of major sectoral trends in the extractive industries, the energy transition, infrastructure, and related sectors.

Industry Comments

“The 2025/2026 Trends report underscores that investors remain focused on material sustainability risks and opportunities that affect business resilience and promote value creation over the long term. While approaches to these issues continue to evolve, enhanced corporate disclosure remains essential for investors to mitigate risks and capitalize on opportunities, such as those presented by climate change and emerging artificial intelligence (AI) technologies.”

– Amy D. Augustine, Director of ESG Investing, Boston Trust Walden

“At a time when the broad expectation was that sustainable investing assets would contract, this year’s Trends report shows that the industry is staying the course and committed to providing long-term value. This aligns with Calvert’s time-tested responsible investment philosophy.”

– Anthony Eames, Managing Director, Responsible Investment Strategy, Calvert Research and Management

“The continued strength in sustainable investing AUM demonstrates that ESG integration has become a fundamental part of investment strategy, not a passing trend. At G&A, we’ve tracked thousands of companies increasingly adopting sustainability reporting and disclosure practices in response to investor demand. This alignment between investor capital allocation and corporate transparency is strengthening markets, improving corporate resilience, and creating long-term value for all stakeholders and the broader economy.”

– Louis Coppola, CEO & Co-Founder, G&A Institute

“That this report found that 69% of the entire US market is covered under a stewardship policy underscores the importance of this approach in driving value. Whether through proxy voting, direct engagement or other stewardship strategies, global companies can expect to hear from the investment community about issues that affect corporate resilience.”

– Lisa Hayles, Director of Sustainability and Stakeholder Engagement, Trillium Asset Management

2025 Trends Report Sponsors

• Boston Trust Walden • Calvert Research and Management • ClearBridge Investments • Domini Impact Investments • G&A Institute • The Sustainability Group at Loring, Wolcott & Coolidge • Trillium Asset Management

ABOUT US SIF

The Sustainable Investment Forum is the preeminent voice advancing sustainable investing. Members, who represent $5 trillion in assets under management or advisement, support US SIF’s mission to rapidly shift investment practices toward sustainability, focusing on long-term investment, the generation of positive social and environmental impacts and supporting the shift toward a more resilient and equitable planet and society. US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investing.