Holding the line 

In an age of ‘greenhushing‘, conviction has become a quiet mark of leadership. Across global markets, a growing number of investors have been diluting their commitments to sustainability, fearful of being caught in the political crossfire. Yet for those investing across decades, particularly in long-dated real assets, staying the course on sustainability is not a statement of ideology, but of investment discipline. 

Sustainable finance is not in retreat. It is entering a moment of clarity. The recent backlash against ESG has stripped away some of the performative gloss, forcing investors to confront a fundamental truth: sustainability within finance is only meaningful when it drives outcomes that endure. The investors best placed to succeed over the next decade will be those who have always treated sustainability not as a communication campaign, but as a compass. 

From optics to outcomes 

In many ways, the market needed this recalibration. At the zenith of ESG, the market was crowded with labels, ratings and virtue signalling – often resulting in a gamification that too often obscured the link between sustainability and financial performance. When an electric vehicle manufacturer – regardless of thin disclosures and social & governance issues – could score lower than a major oil producer, the logic of the system was clearly strained. 

The backlash has been bruising, but it has also created space for a more grounded conversation. Investors are moving away from a tick-box mindset and back toward first principles: how do sustainable investments affect long-term returns, risk resilience and the stability of the societies we invest in? This shift from optics to outcomes is the hallmark of maturity. 

It also marks a subtle but important transition from virtue to value. Climate risk, biodiversity loss and social inequality are no longer moral questions sitting at the edge of finance; they are core to how value will be created and preserved. Recognising their materiality is not a matter of ideology, but of fiduciary duty. 

Conviction in an age of fragmentation 

The paradox of today’s sustainability landscape is that it has never been more visible, nor more divided. Regulations, taxonomies and disclosure standards differ sharply between jurisdictions, and political rhetoric oscillates between ambition and backlash. Amid this fragmentation, consistency becomes a strategic advantage. 

For investors managing closed-ended strategies and real assets, this is especially true, as their time horizons extend well beyond electoral cycles or news headlines. But staying the course is not about moral constancy; it’s about financial alignment. The best investors understand that the same principles which make a business resilient – resource efficiency, community trust, climate readiness – are those that underpin financial resilience too. 

Long-termism is a test of conviction. The temptation to flinch when the political winds shift is understandable, but it is precisely in moments of uncertainty and discomfort that leadership is always most visible. Those who hold their nerve now will be best positioned when the next cycle of capital flows back toward those secular macro trends which are – and will continue to – reshape our world. 

Beyond labels, toward lasting value 

As the conversation matures, the language of sustainable finance must evolve too. Transition capital is not about ticking ESG boxes or chasing ratings; it is about aligning investment strategies with the structural forces shaping the next half-century. Climate risk, nature restoration, demographic change and technological adaptation are not side themes, but material drivers of market performance. 

Investors who recognise this will understand that sustainability is no longer niche but a foundation for future growth. The question is not whether to engage, but how to do so with conviction, coherence, credibility and patience. 

Leadership through calm consistency 

If the past few years were defined by mainstream fanfare, the next few years – I hope – will be shaped by a quieter, more diligent focus on the work that needs to be done. The sustainable investors who endure and thrive will be those who have always understood that success in our industry will only ever be measured by investment returns and that conviction, rarely conformity, is what generates alpha.  

Investors who recognise this and undertake the hard, often unseen work of deep fundamental research and embedding sustainability within core investment decisioning, will deserve the rewards when they inevitably come.  

Because in the end, conviction compounds.