Can sustainable investing survive Trump 2.0?

illuminem summarizes for you the essential news of the day. Read the full piece on the Australian Financial Review or enjoy below:

🗞️ Driving the news: Sustainable investing faces political headwinds as Donald Trump prepares to re-enter the White House in 2025
• His administration may dismantle the Inflation Reduction Act, a key driver of clean energy investments, prompting U.S. financial institutions to distance themselves from net-zero commitments
• Despite stronger support in Europe and the UK, public trust in ESG investing is faltering due to persistent concerns over greenwashing

🔭 The context: The Inflation Reduction Act catalyzed a wave of clean energy initiatives, but its potential rollback threatens to stall progress
• ESG-focused investors and firms, wary of regulatory and reputational risks, are adapting to avoid scrutiny under the new U.S. administration
• Meanwhile, skepticism about the true impact of ESG funds continues to grow globally

🌍 Why it matters for the planet: The evolving political and public sentiment risks derailing momentum in addressing climate change through sustainable finance
• If the U.S. scales back its commitment to ESG goals, the global fight against climate change could lose a key contributor, while undermining trust in the financial sector’s role in sustainability

⏭️ What's next: ESG investing may shift toward greater transparency and stricter criteria to address greenwashing concerns
• Internationally, the EU and UK could play a pivotal role in maintaining global ESG momentum
• Companies and financial institutions may also recalibrate their strategies to navigate the new political landscape

💬 One quote: “US banks and investment managers keen to curry favour with the new administration... are ditching net zero alliances.” – Alice Ross, Financial Times

📈 One stat: Trust in ESG funds remains low, with surveys showing widespread concerns about greenwashing despite increased global interest in sustainable investing

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