

Hortense Bioy, Morningstar Head of Research, on Sustainable Investing Under Trump 2.0
Feb 20, 2025
Hortense Bioy, Head of Sustainable Investing Research at Morningstar, dives into the evolving landscape of sustainable investing. She discusses how investment flows have shifted in recent years and what the suspension of net zero initiatives means for investors. Bioy highlights the challenges posed by greenwashing and the need for greater transparency in the industry. Additionally, she delves into the contrasting sustainability regulations between Europe and the U.S., emphasizing the implications for future investment strategies.
AI Snips
Chapters
Transcript
Episode notes
2025 Sustainable Investing Themes
- Three key 2025 sustainable investing themes are ESG regulations, AI, and energy transition.
- ESG regulations will test Europe's commitment while AI raises environmental and social concerns.
Changes in ESG Asset Flows
- Europe continues leading sustainable inflows, but 2024 inflows disappointed compared to prior years.
- Major reclassification and fund renaming efforts are reshaping the ESG fund landscape.
US ESG Outflows Explained
- US ESG outflows reflect political backlash and underperformance of ESG funds.
- Sector biases and high interest rates have hurt thematic ESG funds like clean energy.