October 30, 2025
Welcome Back,
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
Sustainable Investing: What’s Changing in 2025
Sustainable investing (also called “ESG” investing) has been a hot topic for years. But in 2025, things are evolving in big ways. New rules, new priorities and a shift in focus mean that if you’re invested — or thinking about investing — you might want to pay attention.
Here’s what’s going on, what’s changing, and what that could mean for you.
What we mean by “ESG”
E = Environmental: How companies handle things like climate change, pollution, resource use.
S = Social: How companies treat workers, communities, diversity & inclusion.
G = Governance: How companies are run — board structure, ethics, transparency.
Investors use ESG criteria to pick companies not only for profit potential but also for how they perform in those areas.
What’s shifting in 2025
Here are some key changes and important new trends:
More transparency & tougher reporting: Companies are being required to show more detail about their ESG activities — not just broad claims. For example, in the EU, the Corporate Sustainability Reporting Directive (CSRD) is pushing firms to disclose deeper sustainability-data (emissions, water usage, diversity, etc.).
Shift in focus from just “green” to “social + governance” too: It’s not enough to have good environmental credentials; for investors and regulators, social (worker treatment, human rights) and governance (how well companies are managed) are gaining equal weight.
Regulatory and regional divergence: Some regions push hard on ESG regulation (like EU), while others move more slowly or face backlash. This means standards and definitions differ by region.
Investment flows and strategy are adapting: While many individual investors remain interested in ESG, actual money flows are changing. For instance, a recent report shows broad interest in sustainable investing remains high (~88% globally) but there are also some fund outflows and shifts in how strategies are applied.
Why this matters for you
What does all this mean in practical terms? Here are four points:
Watch what companies claim vs. what they deliver: With more disclosure requirements, companies that simply market themselves as “green” without strong backing might get exposed. That could mean investment risks if you’re buying based on ESG branding.
Know the “S” and “G” matter now: Traditionally “E” got the most focus (climate change, emissions). But now social issues (worker treatment, diversity) and governance (board independence, ethics) are increasingly important to investors and regulators. That broadens what to watch.
Regional differences = opportunities and risks: If standards are strict in the EU but looser elsewhere, companies operating globally face complexity. That means investments in global firms may have hidden ESG risks or opportunities.
ESG doesn’t mean “no risk” or “better returns” by default: While many believe you can get strong financial returns and do good, the evolving nature of ESG means strategies are still changing. For example, funds labelled ESG may see changes in flows or strategies as regulation and investor sentiment shift.
“More than 80% of individual investors believe it is possible to achieve financial gains while focusing on positive environmental or social outcomes.” - Morgan Stanley
Quick-check list: What to keep an eye on
Does the company publish real ESG data (not just slogans)?
How well does it score in social and governance factors, not just environment?
Is the investment regionally diversified — and aware of local ESG regulation?
Are ESG-themed funds changing behaviour or flows? (See fund inflows/outflows for insight)
Do you understand what you mean by “sustainable”? (Many funds and companies define it differently.)
Final thought
Sustainable investing is going through a transformation in 2025. What used to be a trend of “green investing” is now a much deeper, more complex story involving disclosure, social values and governance standards. For a reader of The Economic Wagon, this means one thing: the landscape of responsible investing is shifting — and knowing this gives you an edge.
If you’re starting or managing investments, or just tracking what companies are doing, this shift matters. It’s not just whether something is labeled “ESG” but how it is measured, enforced and integrated into a wider strategy.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.