Renewed Resolve: Investors Gather at FORUM 2025 to Shape What’s Next

Every summer, US SIF brings together leaders in sustainable investing working across the capital markets to drive a more sustainable economy. This year’s event, FORUM 2025, came at a critical time for the industry when the push-pull over sustainable investing and broader systemic economic and social issues are playing out at the federal, state and local levels – in the markets and on our streets.  

That is why it was so important – and such a strong signal – that over 300 of you showed up in Washington D.C. to debate, learn, network and together consider ways to continue to drive impact and returns.  

Here’s a look at what we learned, and what's ahead:

Climate risk is financial risk – adaptation is key 

For decades, sustainable investors have positioned climate risk as financial risk with attention focused on creating low-carbon portfolios. The focus on reducing greenhouse gas emissions rightly targeted a key driver of a warming climate. But as the realities of climate change begin to affect our physical reality in undeniable ways – heat domes, deadly floods – investors are increasingly considering the financial material risks posed by stranded assets, like uninsurable towns, or whole swaths of areas that have not invested in climate resilience.  

A number of panels focused on exactly this risk and provided a look into the ways policymakers, local leaders and investors are addressing resilience and adaptation.  

We heard from Jane Gilbert, Chief Heat Officer for Miami-Dade County – the first person in the world to hold that title – about the health and economic impacts of extreme heat. By mid-century, more than 60% of Americans are projected to face dangerous heat waves with temperatures exceeding 100 degrees for at least three days each year, while some areas in the South could experience stretches of over 70 consecutive days above 100 degrees. The decrease in productivity due to extreme heat could cost the US over $500B by 2050. 

For physical climate risk, location matters. Investors now have access to granular data, down to the rooftop level, to help assess and manage the physical risks of climate change.  Separately, investors can engage companies to better address physical climate risk by asking the right questions. Are companies going beyond overall carbon reduction plans and looking at location-based climate resiliency initiatives? Are they paying attention to physical risks that are too often overlooked, like heat risk?   

The energy transition is here to stay 

This month, Congress passed H.R. 1, a massive tax and spending bill that rolls back and deprioritizes clean energy tax credits, especially for solar and wind. But even the so-called One Big Beautiful Bill made way for certain sources of zero-carbon energy and climate tech, like geothermal and hydropower.  

A lack of federal support will undoubtedly slow the rollout of renewables, but the US needs energy now – and a lot of it. US electricity demand is skyrocketing. According to Brattle Group, energy use in the US will grow by over 50% by 2035 driven by the rise of data centers, reshoring and increased electrification. Renewables are already rising to meet the moment. Solar, batteries and wind are expected to make up over 90% of new additions to the energy grid this year.  

Meanwhile the cost of developing renewable energy has become cost competitive compared to fossil fuels.

The interest in renewables goes beyond climate. Renewables are increasingly being seen as a key energy security, independence and AI dominance. Hyperscalers’ need for readily deployable sources of energy and price stability means they are increasingly turning to renewables to power their data centers.  

Investors are not shying away. According to the international energy agency, $3.3 trillion will funnel into energy globally this year, with twice as much money going into clean energy than fossil fuels.  

Investors will continue to engage the companies they own  

Crackdowns on proxy advisors, shareholder rights and heightened restrictions on sustainability disclosures are undermining investors’ ability to effectively manage financial risk. Proxy advisors play a crucial role in helping institutional investors analyze the breadth and complexity of issues that are material to financial performance and risk management.  

Creating inclusive capital – Sustainable Indigenous Finance Initiative 

We were extremely proud to hold a soft launch of our new Sustainable Indigenous Finance Initiative. Working together with our partners ImpactArc and First Peoples Worldwide, this initiative reimagines how capital markets engage with Indigenous Peoples, aligning investment practices with Indigenous priorities while creating long-term value.  

Across three events during FORUM, attendees learned how working in partnership with Indigenous Peoples unlocks opportunities for industry, investors, and communities.