Demand for impact investing will grow rapidly over the next three years, according to an annual survey which shows limited reduction in the US market for sustainable investments despite an adverse political environment.
The 30th US SIF Foundation sustainable investing trends report found that 46% of respondents expect their organisations to increase impact investing activities, with sustainability-themed investing (43%) and ESG integration (38%) also expected to rise.
Around 60% of respondents current deploy impact investing strategies, said the report, adding that the expected increase reflected a “focus on outcomes and positive impact alongside investment returns”. The 2025 survey was based on responses from 270 institutions, of which the majority (59%) were asset managers.
The report also estimated that around 11% of the US market was invested in sustainable or ESG investment strategies in 2025 – representing US$6.6 trillion – based on an analysis of filings with the US Securities and Exchange Commission. Although this was a slightly higher amount than the US$6.5 trillion reported in 2024, it represents a slight contraction in sustainably managed assets due to an increase overall market size in the past 12 months (to US$61.7 trillion).
Approximately US$42.7 trillion (69%) of US assets under management were covered by a stewardship policy, according to publicly available investor information and disclosures.
US SIF, the US Sustainable Investment Forum, said political pushback had moderated, not reversed ESG activity, with nearly half of respondents (46%) reporting no impact to their own organisation’s approached sustainable investment.
However, 29% said they now focus explicitly on demonstrable financial materiality; one in four have stopped using the ESG acronym. The survey also found an increase in the number of firms emphasising their commitment to fiduciary duty.
US asset managers offering sustainable investment strategies have faced increasing legal and political pressure in recent years, including court cases brought against managers in Republican-run states and federal investigations into collaborative initiatives.
“The shifts we’re seeing reflect a pragmatic adaptation to the current environment while maintaining focus on the long-term drivers of value and changing market risks and opportunities,” said Maria Lettini, CEO of US SIF.
