Between regulatory advances, fierce criticism, and sustainable innovations, 2025 will have confirmed that ESG is as much an ideological battle as it is a major economic issue.

ESG under pressure but still unavoidable

In a gloomy global climate—with the United States withdrawing from the Paris Agreement, major financial institutions pulling out of Net Zero alliances, and several pieces of legislation related to non-financial reporting being weakened in Europe—ESG funds nevertheless continued to attract capital. In Q3 2025, Article 8 funds recorded a net inflow of €75 billion, up from €47 billion in the previous quarter (Morningstar). However, suspicions of greenwashing persist.

Europe, a pillar of confidence for sustainable investors

Despite criticism, interest in ESG remains strong. Flows are now more selective, a sign of market maturity. Europe, thanks to its clear regulatory frameworks (SFDR, Taxonomy, CSRD), appears to be a strategic refuge. Some notable examples from this year: The People's Pension (United Kingdom) transferred $25.2 billion to Amundi. AkademikerPension (Denmark) reallocated $480 million from a US manager to Europe. These moves reflect a desire to avoid US political uncertainty and take advantage of European stability, despite the debates surrounding the Omnibus project, which simplifies the non-financial reporting framework. Furthermore, within Europe, the binding target of a 90% reduction in net emissions by 2040, set in 2025, is forcing companies to move from communication to action.

Climate: a global priority, but insufficient progress

At COP30 in Belém in November 2025, the WHO president reminded us:

"A sick planet means sick people. The climate crisis is a health crisis, not in the future, but right now. It is much easier to convince people of the need to protect their own health or that of their children than to protect glaciers or ecosystems. Both are important. One is much closer to home."

Despite this awareness, the COP failed to impose a clear path away from fossil fuels, leaving COP31 (June 2026) with the task of taking up sensitive issues.

Announcements of carbon neutrality are multiplying, but results remain limited. According to the MSCI Sustainability Institute¹, 1% of listed companies generate 55% of global emissions, mainly in energy, utilities, and basic materials. Some multinationals have ambitious goals, but their operational implementation still needs to be consolidated.

However, some players are showing tangible progress, such as Ørsted, a former Danish oil giant, which has reduced its emissions by more than 80% in ten years by switching to offshore wind power.

A swan song or the dawn of victory ?

Paradoxically, the populist backlash against environmentalism could signal that ESG is gaining ground. The history of the last two centuries shows that conservative resistance often arises when victory is near.

ESG assets under management are expected to reach $3 trillion, with more selective growth than between 2020 and 2022. Investors favor funds that can demonstrate real added value, particularly through sustainable bonds. The green bond market is expected to exceed $1 trillion in annual issuance, confirming their central role in financing the transition. Finally, younger generations will continue to drive demand for financial products that are transparent and aligned with their values.

The year 2025 showed that ESG has become a permanent feature of the financial landscape, without necessarily constituting a consensus. The next steps will be marked by increased demand for verifiable data, a simplified and more precise regulatory framework, combined with an expectation of measurable results.

¹Tracking Emissions: Corporate Concentration and Climate Progress

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