US Sustainable Investing Trends 2024/2025 - Executive Summary
Your essential guide to the future of Sustainable Investing.
The US SIF Trends Report 2024/2025, celebrating its 15th edition, delivers unparalleled insights into the rapidly evolving landscape of sustainable investing in the United States. As the premier source for data and analysis in the field, this report provides a comprehensive understanding of the trends driving $52.5 trillion in US assets under management (AUM), including $6.5 trillion explicitly marketed as ESG or sustainability-focused investments.
To learn more about the survey and report, you can access our Methodology.
Key Findings and Takeaways
The Market is Poised for Growth
73% of survey respondents expect the sustainable investment market to grow significantly in the next 1-2 years, driven by client demand, regulatory evolution, and advances in data analytics. This is still the case, despite political headwinds and regulatory scrutiny.
Impact investing and sustainability-themed investing are set to expand, with 36% of respondents prioritizing these strategies.
Stewardship Takes Center Stage
79% of US market assets ($41.5 trillion) are now covered by stewardship policies, though further research is needed to assess their active implementation and impact.
Shareholder advocacy and corporate engagement are pivotal strategies for fostering ESG alignment and risk mitigation.
Focus on Climate and Clean Energy
Climate change remains the dominant theme, with a strong emphasis on clean energy transitions, carbon reduction, and nature restoration.
Investment strategies are increasingly aligned with the Sustainable Development Goals (SDGs), addressing both short-term and long-term societal priorities. Climate Action (SDG 13) and Affordable Clean Energy (SDG 7) dominate current and future focus areas.
Strategic Shifts in Investment Approaches
ESG integration (81%) and exclusionary screening (75%) are the most commonly used strategies. Survey responses indicate that 62% use 5 or more negative screens.
Fossil fuel exclusions are now the leading negative screen (68%). There is growing momentum for transparency, regulatory compliance, and harmonization of reporting standards.
Challenges and Opportunities Ahead
Political challenges, such as anti-ESG rhetoric and greenwashing concerns, continue to shape the narrative. Our survey shows that although these present challenges, they also highlight the need for improved communication and education about the value of sustainable investing.
The industry’s focus on improving data quality, AI-driven analytics, and impact measurement offers a path to overcome these challenges. The sector is seeing rising interest in AI and data analytics (65%), impact investing (58%), and the diversification of ESG-focused asset classes such as private equity and thematic bonds.
A New Benchmark for Sustainable Investing
Improved Methodology
Eliminates double counting, providing distinct measurements for Sustainable AUM and Stewardship AUM.
Data-Driven Insights
Based on over 265 survey responses, supplemented by AI-enhanced data collection and robust desk research.
Interactive Tools
Offers online visualizations and enriched reference materials for deeper engagement with findings.
Methodology and Survey document
To learn more about the survey and report, you can access our Methodology.
Why This Report Matters
Actionable Data
Insights into market trends, investor strategies, and emerging opportunities.
Strategic Guidance
Tools to navigate regulatory complexities and capitalize on ESG and sustainability themes.
Future-Focused Recommendations
Pathways to drive both financial performance and societal impact.
Catalyzing Impact: The Role of CDFIs in Sustainable Investing
Community Development Finance Institutions (CDFIs) are emerging as key players in advancing economic equity and environmental sustainability. These specialized institutions direct capital to underserved communities, creating opportunities for small businesses, affordable housing, and community infrastructure.
Key Highlights:
Explosive Growth: The assets managed by CDFIs have surged by 615% since 2014, reaching $458 billion in 2023. This expansion reflects increased demand for responsible investing and support for community-focused solutions.
Expanding Capabilities: CDFIs now invest across diverse asset classes, including microfinance, renewable energy, and affordable housing, enhancing their impact and reach.
Addressing Inequity: By combating financial exclusion, predatory lending, and economic disparities, CDFIs are instrumental in fostering social equity and financial inclusion.
This sector demonstrates the transformative potential of targeted capital allocation, aligning with broader sustainable investment goals. The growing relevance of CDFIs underscores their critical role in shaping a more equitable and resilient future.
Stay tuned for the US SIF Special Focus Report on CDFIs, to be released in 2025, offering deeper insights into the impact of these institutions and their expanding role in the sustainable investment landscape.
States and Territories with Certified CDFI Headquarters
Words from our CEO
For three decades, we have been in the privileged position of working with the US sustainable investing (SI) community to explore the trends shaping the way investors address environmental, social and governance (ESG) issues.
Now on our 15th edition of this biennial survey, we track the evolution of a practice that has moved from a niche approach focusing on values-driven decision-making in its infancy, to a rigorous field centered on financial risks and opportunities.
Today, we are on the cusp of yet another evolution. In the two years since we last published, SI became the target of political culture wars, anti-ESG legislation was introduced in multiple states (largely unsuccessfully), and ESG-marketed funds came under scrutiny for potential greenwashing.
The attention on sustainable investment is a natural outcome for an industry that has grown in both size and influence over the past 30 years. Rather than a roadblock, this is an opportunity to continue to refine the way we address the systemic issues shaping everything from the global economy to our day-to-day lives
Maria Lettini CEO, US SIF
Get the Full Picture
Access the full report for a comprehensive breakdown of sustainable investment strategies, exclusive survey findings, and expert insights to navigate the challenges and opportunities in the years ahead.
