In today's rapidly evolving financial world, aligning wealth with personal beliefs is no longer a niche trend but a powerful movement reshaping portfolios.
More investors are seeking ways to integrate social and environmental values into their financial strategies, driven by a desire for positive impact.
This shift reflects a broader awakening where money serves not just as a tool for growth, but as a force for good in society.
Sustainable investing has grown into a formidable market, with assets reaching impressive scales that underscore its mainstream adoption.
In 2025, sustainable assets totaled $6.6 trillion, accounting for 11% of the global $62 trillion in assets under management.
This growth is supported by a steady increase in sustainable fund assets, which climbed to $3.7 trillion, reflecting a rise of around 4%.
The green bonds market has expanded dramatically, growing from €30 billion a decade ago to €1.9 trillion today.
These figures highlight the robust foundation upon which values-based wealth planning is built.
Values-based investing, often referred to as ESG or sustainable investing, is becoming a core component of financial decision-making.
Individuals are increasingly focusing on companies that demonstrate ethical practices and positive societal contributions.
This trend is not limited to retail investors; institutional players like pension funds and insurers are scaling their commitments.
Despite some headwinds, ESG portfolios saw a rebound with $4.9 billion in net inflows globally in Q2 2025, driven largely by European investors.
Key areas of focus for investors include:
The sustainable investing space faces obstacles, including a decline in the use of the ESG term among less committed funds.
One in four sustainable investment managers has stopped using the ESG acronym, reflecting broader political and regulatory pressures.
New sustainable fund launches have dried up, with only 26 in Q3 2025, down from 92 in Q2 and 200 in Q4 2022.
Of these launches, 20 were in Europe, highlighting regional disparities in commitment.
Regulatory evolution, such as EU rules requiring funds with environmental names to exclude fossil fuels, adds complexity but also clarity.
Wealth planning is evolving to incorporate social and environmental values, particularly in retirement and legacy strategies.
In 2026, more people are increasing retirement savings goals to account for longer lifespans and philanthropic aspirations.
Planning for higher healthcare costs is essential, with investors exploring tools like health savings accounts and long-term care insurance.
Portfolio strategies are adapting to include values integration, with investors adopting diverse approaches to balance risk and impact.
Climate-related strategies are expected to remain central in 2026, offering pathways to both financial returns and environmental benefits.
Green bonds finance projects like renewable energy and green buildings, providing transparency and impact reporting.
Decarbonization efforts are moving from pledges to action, with frameworks like the Net Zero Investment Framework guiding reductions.
Climate and nature solutions target companies delivering measurable environmental outcomes, such as in clean energy or sustainable agriculture.
Emerging themes like labor-aware investing reward companies that prioritize fair labor practices, positioning it as a key focus for 2026.
Sustainable investing trends vary significantly across regions, influenced by cultural, political, and economic factors.
Europe continues to lead, with sustainability seen as a strategic imperative rather than a passing trend.
In Asia Pacific, 80% of asset owners expect growth in sustainable funds over the next two years, supported by record sustainable debt issuance.
The United States faces pushback against ESG, creating a more cautious environment but not halting progress entirely.
Technology is reshaping wealth management, with AI and unified data systems enhancing advice and client experiences.
Private markets and alternatives are becoming integral, with 90% of advisors already allocating to them and 88% planning increases.
Client expectations are shifting toward seamless digital journeys and access to private markets, especially among affluent investors.
This broader context emphasizes the need for adaptive strategies that blend values with innovation.
Embracing social and environmental values in wealth plans requires continuous learning and adaptation to market dynamics.
By leveraging these strategies, investors can build resilient portfolios that not only grow wealth but also contribute to a better world.
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