Sustainable Investing Faces 2025 Headwinds and Structural Shifts

In his annual outlook, David Blood, Senior Partner at Generation Investment Management, addresses the current state of sustainable investing as the world moves through 2025. Blood examines the persistent challenges facing the energy transition, including policy uncertainty and supply chain constraints for critical minerals. He also highlights tangible progress in areas like renewable energy deployment and corporate climate governance. The letter serves as a candid assessment of the sector's evolution, balancing near-term headwinds with long-term structural shifts toward a more sustainable global economy.