Stephan Langen: I give up!

Stephan Langen: I give up!

February 11, 2025

Energy Transition Impact investing
Stephan Langen (foto archief ASN Impact Investors)

This column was originally written in Dutch. This is an English translation.

By Stephan Langen, Head of Portfolio Management at ASN Impact Investors

In recent weeks, there seems to be no end to bad news for those pursuing a more sustainable world. US President Donald Trump taking a barrage of baffling measures. The European Commission shelving the Green Deal. How do we keep our spirits up?

Almost every day, Trump issues presidential decrees that bring an unprecedented conservatism back into the US government, at the expense of human rights and the climate.

Sustainability rules watered down

But don't forget that Europe is also working on weakening sustainability regulations. Conservative forces are trying to postpone the sustainable reporting obligations for companies under the CSDR. This trend was confirmed by the European Commission's new strategic agenda: growth and competitiveness are paramount in exchange for fewer (green) regulations and more room for companies.

Investors in sustainable funds

The tide has turned, and the financial sector has been feeling the consequences for some time now. Throughout 2024, there was an outflow in Europe from so-called Article 9 funds, funds that pursue specific sustainable goals and fall under the ‘greenest’ category of the SFDR.

In the US, we have seen investors distance themselves from sustainable objectives before. We frown when large asset managers do this, as a large portion of Dutch pension capital is invested by these parties, in many cases including stewardship.

Positive signals

In short, there is a lot going on that does not make a sustainable heart sing with joy, but we are keeping up our spirits. In my village, the streets are open because the electricity grid is being adapted to the next phase of the energy transition.

Every week I am approached by passionate initiators with investment propositions in the field of biodiversity. We receive responses from clients who understand that the performance of truly sustainable portfolios can suffer in the short term, but that we must persevere.

Focus on what you can influence

What really cheers me up again is focusing on everything I can influence. I cannot influence Donald Trump and his first buddy Elon Musk (who can?!), so it is a waste of energy to get worked up about what he says and does. This headwind in Europe, temporary or not, is a fact.

I therefore prefer to choose to focus on the choices we can make in the financial sector with like-minded colleagues and partners who share a sustainable vision. We are in charge of investment policy, we are on the investment committees. We can determine where the managed money goes. This also makes us a force to be reckoned with.

Taking responsibility together

This power comes with great responsibility. Let's tackle it together. It may be a bit of an uphill battle at the moment, but nobody said that what works best in the long term would be easy in the short term. I am convinced that the undercurrents in society in general and the financial sector in particular will be stronger than the politicised headwinds. So keep your chin up, hold your head high and never give up!

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