Some asset managers don't find environmental sustainability, equity and inclusion a problematic idea when it comes to investing.
Despite political rhetoric against ESG and other topics, multifamily office firm LNW hasn't "seen any kind of degradation in commitment or interest" on the part of its managers, Justina Lai, chief impact officer for LNW, said in an interview.
Instead, it has witnessed a shift in how managers communicate their practices. "It isn't a retreat, it's been a recalibration," Lai says.
It's a trend that some have referred to as "green-hushing," where ESG and impact practices are played down or adjusted to avoid scrutiny. "Most managers continue to uphold core ESG practices, reflecting a deep and enduring belief in their long-term financial relevance," Seattle-based LNW wrote in a report.
LNW surveys its asset managers annually to learn how they integrate ESG, and climate risks and opportunities, into their investing practices. Some managers invest specifically to create positive environmental or societal change, alongside market-rate returns, while others are traditional asset managers focused on generating financial returns within their asset categories.
Take climate change. Investors recognize that "physical and transition risks are real and are impacting investment outcomes and returns," Lai says. "Rather than talking about climate policy, instead we're now talking about energy security, energy affordability, and the recognition that renewable energy is actually the cheapest form of energy out there."
Incoming data from LNW's yet-to-be published survey of its managers indicates "measurable improvement, despite the noise or rhetoric," she says. One area affected by politics, however, is diversity, equity and inclusion, which has "flatlined" as an objective among managers. While they may have removed DEI from their policies, these managers still focus on inclusivity and culture. "In terms of what they're actually doing, it hasn't really changed," Lai says.
Many investors care about the impact their capital is having in addition to earning financial returns. At LNW's practice, assets dedicated to impact strategies -- which are designed specifically to create positive environmental or social change -- rose to nearly $3.5 billion at the end of June from about $2.5 billion at the end of 2024, Lai says.
In the U.S. overall, assets dedicated broadly to sustainable investing, including impact as well as the integration of environmental, social, and governance considerations into investment decisions, held steady last year, rising slightly to $6.6 trillion from $6.5 trillion a year earlier, according to the U.S. Sustainable Investment Forum's annual report. U.S. SIF notes that the figures represent a marginal decline because markets overall rose significantly in 2025, however.
Consistent with LNW's research, U.S. SIF said in its December 2025 trends report that a majority of managers that responded to their survey "reported that most external events -- ranging from climate and regulatory shifts to political dynamics -- had no adverse effect on their sustainable investment activity."
Globally, sustainable investing trends are stronger. Assets dedicated to impact investments specifically have risen at a compound annual growth rate of 21% over the past six years, according to an October report by the Global Impact Investing Network.
In the past year, assets under management for impact gained 11%, the report said, "despite global headwinds." The report was based on data from 429 institutional investors in 54 countries.
At the GIIN, wealthy families and ultrawealthy individuals across the world have shown increasing interest in impact investing in the past few years, CEO Amit Bouri said in an interview.
"The big evolution that we're seeing is families and family offices want to be much more strategic about their approach to impact investing," Bouri says. These families "want professionalized, sophisticated approaches," drawing on tools and training the GIIN has developed over the years for pension funds, insurers, and global asset managers.
"They want a better future for their children, and given concerns about what's happening from a social standpoint and an environmental standpoint, there's a lot of interest in investing in a better world and that's leading them to impact investing," Bouri says.
It includes channeling capital into clean energy solutions, affordable and green housing, nature-based solutions, and investments that support the oceans and sustainable agriculture. Because impact investments are aimed at creating positive results for communities worldwide, they "tend to have resonance across the political spectrum in the U.S. and abroad," Bouri says.
At Relevance Ventures founded by brothers Cameron and Dean Newton -- members of the Patawomeck Tribe of Virginia -- making an impact goes without saying. The firm invests in early-growth companies creating technology and services that can improve the health of underserved communities, particularly Native American communities. But Dean Newton said the "investing" piece is of primary importance.
The goal is "to make money for our limited partners," he said in an interview. "You really can't have meaningful, lasting impact if you lose money."
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