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Sustainable Investing and the Election

Part I of our series on the election and ordinary investors.

It is a common refrain this time of year: a laundry list of items that are “on the ballot,” beyond the decision to vote for candidates for president, Congress, and statehouses across the country. Here is another: The availability of sustainable funds, and those that use environmental, social, and governance metrics and information to guide their investment decisions, is on the ballot in November as well.

To be clear, no matter the outcome of this election, we do not believe that investor interest in sustainable funds will go away. Investor demand is high and growing, and we do not see that trend reversing. However, should President Donald Trump win re-election, the administration will advance policies that lead to slower growth in sustainable investing than we would otherwise see in a Democrat Joe Biden administration. Similarly, professional asset managers are increasingly incorporating ESG considerations into their investment decisions and will do so regardless of the outcome of the election.