Sustainability Shows Resilience in a Changing Climate

Sustainable investing is demonstrating its resilience to shifting political sentiment through robust demand and a rising wave of innovation-led opportunities, according to Daniel Bland, Senior Investment Manager at EQ Investors. 

“Politics has changed a huge amount in the last two to four years,” Bland told Sustainable Times’ Sustainable Startup Investment Summit. “The good news is sustainable investors don’t need to be shifted around by the moving political tides. There are still plenty of opportunities out there.”

Daniel Bland

In early October, the summit gathered a community of sustainability-minded founders and investors for an inspiring evening at London’s Plaisterers’ Hall featuring startup pitches and thought-provoking industry panels. 

The tone of political debate around sustainable investment has shifted, notably since the change of presidency in the US, encouraging a more pragmatic approach to how capital addresses environmental and social risks and opportunities. The second Trump administration has scaled back federal support for climate initiatives, with an estimated $8 billion cut in clean energy projects through the dismantling of the Inflation Reduction Act, a centrepiece of the previous government. 

Key initiatives such as the Global Change Research Program have been dismantled, while US participation in the United Nations’ Intergovernmental Panel on Climate Change (IPCC) has been withdrawn. A broad “energy emergency” declaration has also been in the US to fast-track fossil fuel extraction and related infrastructure. Meanwhile, the Environmental Protection Agency, once a leading regulatory body, has been repositioned as an economic enabler, reframing environmental safeguards as potential barriers to affordability.

Growing industries

Bland pointed to the rapid growth of artificial intelligence (AI) and data centre construction as new industries set to drive the next phase of sustainable investment. Although these sectors may not fit the traditional image of “green tech”, their expansion is creating new avenues for climate-aligned capital.

“These industries are reshaping global capital flows,” Bland explained. “Recent estimates suggest around 90% of US GDP growth this year is linked to spending on software and digital infrastructure.” In 2025 alone, AI received $192.7 billion in venture capital (VC) investment.

The rapid growth of AI and cloud computing has fuelled a surge in demand for data storage and processing and with it, a steep rise in energy and water consumption. According to the International Energy Agency, data centres already account for nearly 1% of global energy use and could double by 2026. 

Bland argued that this intersection between technology and energy offers an opportunity. “Investors can benefit by backing stable, well-capitalised companies expanding electricity-grid capacity or improving efficiency through advanced cooling and motor systems.”

Managing risk

Turning to the theme of risk - high on the agenda for many given rising uncertainty and volatility at the policy level - Bland emphasised that it remains a central consideration for any investor, sustainable or otherwise.

But he suggested there are distinctive ways for sustainability-focused investors to frame their absolute risk - the total potential for loss or volatility within a portfolio - and relative risk.

While absolute risk is typically managed through diversification and asset allocation, relative risk helps investors understand whether they are taking on more or less risk than the broader market in pursuit of returns, often measured with reference to a benchmark such as a market index.

In the context of sustainable investing, absolute risk also can be reduced through diversification, said Bland, “but we might use green, blue or social bonds” rather than or alongside traditional instruments. Relative risk, meanwhile, becomes relevant when portfolios exclude certain sectors, such as fossil fuels or tobacco, as sustainable investors often do. 

“Investors can therefore expect periods of ups and downs relative to the market,” he said, adding that portfolio companies embedding sustainability principles with strong governance and responsible practices tend to prove resilient over the longer term. In Q1 of this year sustainable investment portfolios outperformed traditional funds offering a clear indication that sustainability-focused strategies continue to present compelling opportunities for investors.

Join us at our next event.

Sustainable Times RISE Awards

6 November 2025 at 18:30 – 7 November 2025 at 01:00De Vere Grand Connaught Rooms

Register Now