Beyond immediate concerns about the economy and markets, Impact investors are also confronting uncertainty in everything from shareholder advocacy to sustainable infrastructure financing. Yet amidst this turbulence, we continue to believe that the movement.
By Roraj Pradhananga, CIO, Veris Wealth Partners
Since the start of the second Trump administration, we have seen a series of rapid policy shifts (and reversals) and executive actions reverberate through the economy, the regulatory landscape, and the impact investing sector. From rollbacks of climate commitments and Environmental, Social, and Governance (ESG) disclosure rules to executive orders targeting diversity, equity, and inclusion (DEI) initiatives, many of which are being challenged in the courts, these changes are nevertheless reshaping how investors engage with risk, opportunity, and mission.
We’ve seen extreme volatility across equity, bond, and currency markets,1 fueled by policy uncertainty, imposed (and threatened) tariffs, high-level disruptions at federal agencies, and concern from the business community about inflation, recession risks, and regulatory rollbacks. Analysts have warned about the potential for recession2 and stagflation3 despite a relatively strong economy today. In response to concerns about rising debt levels, Moody’s downgraded the US government’s credit rating From AAA to AA1 and changed the outlook to stable from negative.4
Beyond immediate concerns about the economy and markets, Impact investors are also confronting uncertainty in everything from shareholder advocacy to sustainable infrastructure financing. Yet amidst this turbulence, we continue to believe that the movement for values- and mission-aligned investing remains strong—and resilient.
Rather than retreating, many investors are doubling down on their climate, equity, and social impact goals. Some are adjusting the language they use—substituting “sustainable” or “resilient investing” for ESG—but the underlying principles remain intact. Sustainable and impact investing isn’t going away. It’s evolving to meet the moment.
To help impact investors better understand the state of the impact investing field today, I plan to write a series of posts that dive deeper into some of the areas that are shaping the present and future of the impact investing industry. Through this series, we will explore how policy decisions are affecting:
We’ll also examine how investors—especially those aligned with justice, sustainability, and long-term value creation—are adapting, innovating, and finding new ways to lead. From state-level policy responses to shifts in shareholder tactics, we’ll highlight the creative strategies emerging in a challenging environment.
I believe that the need for sustainable and impact investing has never been more urgent. The next three and a half years will present challenges for this movement—but there is also the potential to reveal its power.
Read part two: Navigating the Shifting Sustainable Investing Landscape in 2025.
Read part three: Shareholder Advocacy Engagement Under Pressure
Roraj Pradhananga is the Chief Investment Officer at Veris Wealth Partners. Roraj is a Certified Investment Management Analyst (CIMA®) and Certified Public Accountant (CPA) with over 18 years of experience across the financial services industry. Bio.
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