Assessing the Impact of the Election Results for the Sustainable Investing Field

US SIF hosted an exclusive webinar Assessing the Impact of the Election Results for the Sustainable Investing Field following the 2024 presidential and congressional elections. Investors attending the webinar heard insights on what to expect in the policy realm in 2025 from our panelists: Congressman Seth Magaziner (RI-02), former Congressman Carlos Curbelo (FL-26), and Doug Heye, Senior Advisor at Steward Redqueen.  

Misinformation about the field of sustainable investing has been on the rise among policymakers, and investors have made significant efforts to educate legislators and dispel myths. However, a second Trump term presents regulatory uncertainty and instability for the field. Moderator Bryan McGannon, US SIF Managing Director, cited a “cautious optimism” amongst our panelists. 

Echoing US SIF CEO Maria Lettini's post-election statement, Former Congressman Curbelo said, “This election is a reminder of the fact that the sustainable investing community and the broader, clean energy community have to continue working so that under any electoral outcome our priorities can continue advancing.” 

Key Takeaways

Bipartisanship

Each of our panelists emphasized the importance of bipartisanship for the future of the sustainable investing community, citing multiple opportunities for the two parties to find common ground, especially with a slim voting majority. Opportunities for success in 2025:

• The Inflation Reduction Act (IRA)— President Biden’s key climate bill—has been under fire by Trump throughout the election. Nevertheless, bipartisan support may preserve parts of this historic investment in clean energy. In August 2024, 18 House Republicans signed a letter committing to protect IRA tax credits, such as investments in clean energy infrastructure and decarbonized industrial activity. Sixteen of these Republicans remain in Congress and will be important to future climate policymaking.  

• International Energy Policy presents a way to advance clean energy and reduce pollution while also protecting and favoring American industry. Bills to watch are the proposed Foreign Pollution Fee Act of 2023 (S.3198), a Carbon Border Adjustment Tax—a tariff based on carbon intensity—or further collaborations between conservatives and human rights advocates on China's use of forced labor. 

• Clean Energy Infrastructure offers projects that “provide jobs and real economic impact for your district,” stated Doug Heye from Steward Redqueen on the panel. These projects may facilitate collaborations between regional districts recently affected by extreme weather or those reliant on clean energy. Representatives who faced close elections this cycle will be looking to make significant progress on these issues before the midterm elections in two years. 

The Business Case

Another major theme emphasized by our panelists was doubling down on the business case for sustainable investing. “Sustainability is a business strategy,” stated Heye. “It’s not just a talking point or a box to check.” It is more vital than ever for investors to continue educating both policymakers and skeptics on the financial materiality of issues like climate risk, racial and gender equity, deforestation and biodiversity loss, indigenous peoples’ rights, and transparency around corporate political activity. 

“The most important thing that ESG [environmental, social, and governance] and impact investors can do is continue to deliver strong results for your clients and beneficiaries, so that we can show that this works. It is very important that we have the data to show ESG investing can match or exceed the performance of others,” expressed Congressman Magaziner.  

Next Steps 

Investors will need to be nimble in order to capitalize on key policy advancements for sustainable investing while also defending important investor tools and protections. The following recent successes are at high risk of being reversed or watered down under the incoming Administration:

• Securities and Exchange Commission (SEC)'s Climate Risk Disclosure Rule  

• Department of Labor (DOL)’s rule on incorporating ESG factors in ERISA plans 

• Inflation Reduction Act (IRA)’s consumer tax credits on electric vehicles (EVs) 

Former Congressman Curbelo laid out an important next step for the US SIF community. 

“I know that we’re going to face some challenges, but there will also be some great opportunities. It’s so important for our community, and I’m talking about a very broad community that cares about these issues to continue investing in building out the political center on climate and energy policy all across the spectrum.” 

US SIF members should email the Policy Team for a copy of the webinar.