Pierre Bi: «Sustainability Is No Longer Sexy»
Sustainable investing is facing intense political pressure. What was once seen as forward-looking is now labeled «woke capitalism» — with far-reaching consequences. «But it is precisely in times of disillusionment that truly resilient strategies reveal their substance,» writes Pierre Bi, founder of the cleantech startup Enshift, in his contribution to finews.first.
In this section, authors comment on economic and financial topics.
Since President Trump’s re-election, a tectonic shift has taken place in the financial markets. ESG – environmental, social, governance – the former buzzword of the investment world, is now suddenly treated like a relic from another era. What was once a guaranteed magnet for capital inflows and applause is now dismissed as «woke capitalism» – a slur in the new economic and political reality of the US.
The effects of this shift are clearly noticeable. Banks that just a few years ago proudly committed themselves to sustainable investment frameworks are now quietly pulling back. Engagements are being frozen, green funds liquidated or relabeled. Behind closed doors, people are openly questioning whether ESG is still worth it – not only economically, but reputationally. The fear of getting caught in the political crossfire is paralyzing entire boards.
«Working in the sustainability sector feels like being the remnant of a failed revolution.»
Even icons like Elon Musk, who once set out on a mission to free the world from fossil energy, barely speak out against the openly anti-sustainability agenda coming from Washington. The subdued tones we hear from him on the climate crisis speak volumes.
Former Flagbearers Have Turned Into Causes for Concern
In this atmosphere, working in the sustainability sector feels like being the remnant of a failed revolution. Conditions have toughened – and they’re likely to get even harsher over the next three years. The first tremors are signaling an economic downturn in the sector: Northvolt, once a beacon of hope for Europe's battery industry, is teetering on the edge. At Climeworks, the flagship startup of the carbon-capture movement, mass layoffs are looming. The once-green narrative is under economic pressure – and has lost its emotional appeal.
«Some green technologies are on the verge of economic superiority – not in spite of, but because of the energy crisis.»
And yet, it would be a mistake to be discouraged by these headwinds. Because it is precisely in times of disillusionment that true substance reveals itself. Some green technologies are on the verge of economic superiority – not in spite of, but because of the global energy crisis. The solar and wind boom, coupled with advances in storage technology, is beginning to outshine fossil fuels.
Moreover, new megatrends like artificial intelligence are closely linked to ESG – albeit indirectly. The data centers of the future will require enormous amounts of electricity, making the expansion of cheap renewable energy sources not just an environmental issue, but a competitive advantage. Here, sustainability becomes an economic necessity, not a moral gesture.
«The ESG bubble may have burst – but underneath it, a solid foundation is finally emerging.»
And Trumpism doesn’t reign everywhere. Europe, many Asian countries, and especially some emerging economies are continuing their ESG agendas with consistency. Public acceptance is also growing. The pioneering work of the past decade has left a lasting mark.
The Path Ahead Will be Rough
The conclusion is clear: the ESG bubble may have burst – but underneath it, a solid foundation is finally emerging. The path ahead will be rough, clear-eyed, and tough. But it’s in precisely such times that the companies destined to make history are born. Those who don’t give up now, but instead adapt their strategy to the new reality, aren’t building on sand – they’re building on rock.
Pierre Bi is Founder and CEO of Enshift, a Cleantech-Startup from Baar.
