Displaying items by tag: esg

Faith-based investing is gaining momentum as an alternative to ESG, with Christian financial firm GuideStone noting a surge in demand over the past three years. Will Lofland, GuideStone’s Head of Investments Distribution, explained that many investors began seeking values-aligned strategies during the COVID era, when intentional living and faith-driven financial decisions gained traction. 

Unlike ESG, which often emphasizes broad social agendas, faith-based investing focuses on applying Christian principles to business practices, from employee treatment to product integrity. 

Younger investors have been early adopters, but GuideStone reports growing interest among baby boomers, who hold a significant share of wealth. Lofland stressed that faith-based investing is not about driving social change but encouraging companies to concentrate on core business excellence while adhering to ethical standards. 

Finsum: With rising interest across generations, the strategy is emerging as a powerful opportunity for advisor when pitching clients in the broader investment landscape.

Private equity firms are increasingly exploring thematic investing as a pathway for growth, blending financial returns with measurable social and environmental impact. Summa Equity has pioneered this approach through a “theory of change” framework, focusing on themes like resource efficiency and tech-enabled transformation. 

By investing across interconnected industries, the firm aims to tackle systemic challenges such as decarbonization while generating attractive long-term returns. This model contrasts with traditional ESG investing by emphasizing measurable outputs—like emissions reductions or improved quality of life—rather than compliance-based inputs. 

 “Brown-to-green” strategies, which transform undervalued, high-emitting businesses into sustainable leaders, can unlock massive value while addressing climate goals. 

Finsum: While many large PE firms have been slow to adopt this cross-sector strategy, thematic investing’s potential to deliver both impact and superior returns suggests it could reshape the industry’s future.

Despite political pushback and policy rollbacks, most large U.S. companies have maintained or even increased their sustainability investments in 2025, according to a survey by EcoVadis. 

Nearly half of executives said spending remains steady, while about a third reported higher investments paired with reduced public promotion — a trend dubbed “greenhushing.” The findings suggest that firms increasingly view supply chain sustainability as a strategic advantage, with many citing its role in attracting customers and maintaining operational stability. 

Only a small share have cut back, underscoring a belief among corporate leaders that sustainability supports long-term growth, even if it’s less publicly advertised. Concerns remain over regulatory rollbacks, with nearly half of C-suite leaders warning they could increase supply chain disruptions. 

Finsum: The data points to a quieter but still committed corporate approach to sustainability in the face of shifting political and regulatory landscapes.

Despite recent political pushback, institutional support for ESG (environmental, social, and governance) investing remains strong, with many large investors continuing to prioritize sustainability. 

This is good news for ESG-focused ETFs like the Invesco ESG Nasdaq 100 ETF (QQMG) and the ESG Nasdaq Next Gen 100 ETF (QQJG), which could see more adoption as political resistance fades. A 2025 BNP Paribas survey found that 87% of institutional investors have not altered their ESG goals, and 84% expect sustainability progress to continue or accelerate through 2030. 

Furthermore, 85% of respondents said they now integrate sustainability criteria into their investment processes. However, challenges persist, including concerns about ESG data reliability, greenwashing, and balancing short-term performance with long-term sustainability. 

Finsum: ETFs that aim to address those concerns by tracking transparent, sustainability-aligned indexes with performance in line with their non-ESG benchmarks.

Although the Trump administration is rolling back some environmental regulations and cutting incentives for renewable energy development, many sustainability-focused investments remain commercially viable. 

Deregulatory moves and proposed tariff increases may challenge clean energy supply chains and weaken enforcement of environmental protections. However, the economics of renewables like wind and solar continue to improve, with costs often rivaling those of fossil fuels in parts of the U.S. Demand for energy is also rising due to technologies like AI, reinforcing the need for diverse and resilient power sources. 

UBS maintains that a diversified, global approach to ESG investing can continue delivering competitive returns even in a less supportive political environment.

Despite shifting U.S. policy, sectors such as infrastructure, energy efficiency, and materials still present strong opportunities for sustainable investors.