Schedule a Free Consultation

facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
A Shift in Government Could Mean Big News for Environmentally-Focused Investors. Here's What We Mean Thumbnail

A Shift in Government Could Mean Big News for Environmentally-Focused Investors. Here's What We Mean

While President Biden has a packed agenda between combatting COVID-19, a slow-started vaccine rollout and economic instability, he has promised that from day one, he will “use the full authority of the executive branch to make progress and significantly reduce emissions.”1 While on the campaign trail, now-President Joseph R. Biden, Jr. made it clear that climate change would be a major priority once he entered office. On Jan. 27, 2021, Biden began taking executive action to address climate change.

According to a White House press release, some of these executive actions are intended to:2

  • Put the climate crisis at the center of U.S. foreign policy & national security considerations
  • Create an Office of Domestic Climate Policy in the White House
  • Stimulate clean energy industries
  • Promote conservation and reforestation
  • Develop policies and programs that help address the “disproportionate health, environmental, economic, and climate impacts on disadvantaged communities.”

During the previous administration, total assets in sustainable investing more than doubled from $8.723 trillion in 2016 to $17.081 trillion in 2020. That $17 trillion figure represents 33 percent of total invested assets – meaning a third of all assets are currently placed in sustainably-focused investments.3

With an administration focused on combatting climate change and a Democratic supermajority in Congress, should investors be more focused on ESG investing?

Recent Politics & SRI Growth

While changes were made to some climate change policies, we saw more growth in sustainable investing between 2016 and 2020 than we had seen over the previous decade.3 Why would that be?

This data may indicate that, despite government policy changes, individual investors and private companies had enough interest and dedication to ESG investing to keep the ball rolling on their own. It’s possible that the rollback of certain environmentally-focused policies even “lit a fire” under investors to help combat the potential negative climate impacts of certain federal regulations.

With a shift in administration and a Democratic-leaning Congress, we’ll have to wait and see whether investors will continue placing their money in ESG investments or funds at this continuously climbing rate. Especially, as we’ve seen just days into Biden’s presidency, the current administration has indicated their interest in promoting sustainability and combatting climate change.

What Changes Could Be Coming?

While on the campaign trail, Biden outlined his plan for a Clean Energy Revolution as well as other climate and environmental justice proposals. Cabinet members are already being sworn in who are known proponents of climate change, such as Treasury Secretary Janet Yellen, the founding member of the Climate Leadership Council and former chair of the Federal Reserve.

According to his former campaign website, Biden has plans to make a federal investment of $1.7 trillion over the next decade to boost climate change and fund environmental justice initiatives. He’s also proposed a goal to “ensure the U.S. achieves a 100% clean energy economy and net-zero emissions no later than 2050.”1 In addition to federal investment in clean energy, Biden has also proposed more transparency between public companies and their investors regarding climate change risk factors, emissions data, etc. This would provide investors with a clearer picture of a company’s focus (or lack of focus) on climate change, allowing them to make informed decisions regarding their investments.

With federal backing and support, it’s possible that sustainably-focused companies – such as those harnessing and distributing alternative energy – could grow in coming years. As an investor interested in sustainably-focused initiatives, you’ll want to work with your financial planner or investment advisor to determine what may be the right move for your portfolio in the coming months. With quick, decisive action, we could start seeing more climate-focused initiatives in the news.

Click here to schedule a call with a BWC advisor today.


  1. https://joebiden.com/climate-plan/
  2. https://www.whitehouse.gov/briefing-room/statements-releases/2021/01/27/fact-sheet-president-biden-takes-executive-actions-to-tackle-the-climate-crisis-at-home-and-abroad-create-jobs-and-restore-scientific-integrity-across-federal-government/
  3. https://www.ussif.org/blog_home.asp?Display=155


The information presented in this article is obtained from or based on sources believed to be reliable. BWC does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes or from the use of information presented in this article. The article does not purport to contain all the information that an interested party may desire and, in fact, provides only a limited view. Information presented does not constitute an offer to sell or a solicitation of an offer to buy any security.

All investments involve risk, including loss of principal invested. Past Performance does not guarantee future performance. Individual client accounts and performance vary. BWC does not provide tax advice.

About Beirne Wealth Consulting Services, LLC – www.beirnewealth.com

Beirne Wealth Consulting Services, LLC (“BWC”) is a privately owned, SEC Registered Investment Advisor with offices in Connecticut and Pennsylvania. BWC provides independent, fee-based investment management services and customized financial planning solutions. Our institutional business provides consulting expertise to defined benefit and defined contribution plans, endowments, foundations and non-profit organizations. Our private clients include high net-worth individuals and prominent families, many of whom bring complex wealth management challenges and multigenerational planning needs. For more information, please visit www.beirnewealth.com or give us a call today at 888-231-6372.

*Registration does not imply a level of skill or training.

© 2021 Beirne Wealth Consulting Services, LLC (BWC). All rights reserved. Reproduction or Use without permission is prohibited.