2025 has so far seen a significant shift in the political backdrop for ESG and sustainable investing. While some financial institutions pull back from climate initiatives amid increasing political opposition, a rollback on DEI programmes emphasises the need for diversity, equity and inclusion to evolve beyond good intentions. The UK and US have refused to sign a declaration on “inclusive and sustainable” artificial intelligence (AI) following the landmark AI Safety Summit, and the EU’s Omnibus proposal to reduce the scope of regional sustainability reporting has been criticised as a deregulation setback.