These policy shifts are already reshaping financial priorities. Our blog, The Challenges of ESG Post-Trump explored how Donald Trump’s policies are impacting ESG initiatives in the United States. ESG has become a politically charged term, prompting many companies to reframe their sustainability efforts under less controversial labels like risk management or innovation. Meanwhile, recent regulatory changes by the U.S. Securities and Exchange Commission have made it harder for investors to influence corporate behaviour through shareholder resolutions, creating a more challenging environment for sustainable investing.

Despite this shift, global momentum for ESG remains strong, particularly in Europe, where firms continue to prioritise climate commitments. Many businesses are increasingly relying on technology—such as satellite data and AI—to drive emissions reduction.

While the political climate may have changed, climate risk is still recognised as financial risk, and investors are adapting with new tools and strategies to promote sustainable progress.