Sustainable investing in 2025: five themes to watch

After a year dominated by elections, 2025 will be framed by the aftershocks. Tackling climate impact, the raft of new regulations, and evolution in defence spending are among the priority topics that will influence sustainable investing in the coming year.

Key takeaways

Record hot temperatures and devastating storms will add urgency to the push for clear and credible climate transition plans.
The burden of a raft of – mostly European – regulation coming into force in 2025 will test the continent’s appetite for transition.
Under the Paris Agreement nations have already committed to climate goals over the next decade, but challenges will come to the fore around ambition and implementation.
Ongoing conflicts and possible changes in priorities for the US will drive a realignment of how to finance the global defence sector responsibly.
The global labour market is changing with both risks and opportunities – a different approach to the modern workforce will be required.