We are feeling genuinely hopeful this month. Corporate Q2 earnings season has wrapped and as companies turn toward 2027 budget planning, we are hearing more clients talk about dedicating real resources to sustainability next year. This matches what the market is telling us — for the first time since 2022, U.S. sustainable fund flows turned positive, a clear sign of renewed confidence in sustainable investing. After a few difficult years, there are real signs of momentum building again.
As always, there are a lot of other happenings in the governance and sustainability space. Below is a snapshot of the issues currently top of mind for our team.
If I can answer any specific questions, please do not hesitate to reach out. I would love to hear from you.
— Chad
Our Latest Insights
Check out some of our latest thoughts on today's biggest sustainability issues.
U.S. Sustainable Funds Are Growing Again for the First Time Since 2022
U.S. sustainable funds just posted their first positive quarter since early 2022, pulling in nearly $3 billion in net inflows and pushing total assets to a record $398 billion. That ends fourteen straight quarters of outflows, worth noting for any issuer that assumed sustainability-linked capital had dried up.
But it's important to note that access to that capital is getting more selective, not less. Inflows are concentrated in passive strategies and skewed toward energy transition infrastructure rather than general ESG-labeled products, meaning that companies with a generic sustainability story are likely to find this capital harder to reach than companies with a sharper angle .
Read on for what is driving the shift and what it means for how you position your company to investors this fall.
U.S. Clean Energy Investment Is on Pace for a Record Year
While this month's lead story is about capital returning to sustainable funds, here is a companion data point: U.S. clean energy investment is on track to hit a record $180 billion in 2026, according to a new mid-year report from finance technology firm Crux. This is happening despite the phase-out of federal wind and solar tax credits.
A few numbers worth knowing:
2026 is on pace to set a new record of $180 billon, with the U.S. clean energy capital expenditures reaching $74 billion in the first half of the year.
Developers safe-harbored 170 gigawatts of clean energy capacity ahead of a July 4 deadline to lock in access to expiring investment and production tax credits, a sign of how much was already committed before the incentive landscape shifted.
U.S. battery storage capacity has grown roughly 70% annually for three straight years, reaching 52 gigawatts, with 8.3 gigawatts added in the first half of 2026 alone.
THE BOTTOM LINE
The common assumption is that clean energy investment rises and falls with government incentives. This year suggests otherwise. Even as federal tax credits for wind and solar phase out, developers and investors are continuing to build, pushing capital expenditures toward a record year on the strength of market demand alone. This is a meaningful data point for the broader sustainability conversation: innovation and investment in the energy transition are not dependent on policy support to continue. It demonstrates that clean energy investments have evolved from policy-dependent plays into fundamentals-driven assets capable of delivering resilient long-term returns.
Want to discuss what this kind of durable, incentive-independent momentum means for your company's sustainability investment case heading into 2027 budgeting? Contact our team.
Source: Crux, "State of Clean Energy Finance: 2026 Mid-Year Market Intelligence Report," via E&E News/POLITICO (August 18, 2026).
Some of the news that we're monitoring on behalf of our clients:
Tracking New York's Climate Ambition and Corporate Disclosure Laws
July 23, 2026 |ESG DIVE New York's State Senate passed its own version of SB 253, the Climate Corporate Data Accountability Act, in February 2026, and disclosure requirements are advancing even as the state's broader emissions targets are renegotiated elsewhere. If it clears the Assembly and receives Governor Hochul's signature, New York would become the second state requiring large companies to disclose full-scope emissions, a meaningful expansion of mandatory climate disclosure regardless of developments at the federal level.
Almost All Top US Companies Had Board Diversity Rules. Now Most Are Gone
August 14, 2026 |Bloomberg A sharp, data-driven look at the retreat from board diversity criteria. 61 S&P 100 companies, including Apple, Alphabet, Amazon, Starbucks, and Wells Fargo, have dropped explicit diversity provisions for new directors since 2023. A useful governance counterpoint to this month's more upbeat sustainability data, and a reminder that not every governance trend is moving in the same direction.
M&A and AI Shape Shareholder Activism in 2026
July 28, 2026 | Business Wire New data from Diligent Market Intelligence's Proxy Season Review shows proxy contests are down sharply in 2026, but activism itself is not fading. Activists are winning nearly all contested board seats through negotiated settlements instead, and increasingly using M&A demands as their tool of choice. A useful read on how shareholder pressure is changing shape rather than disappearing.
Google Expands U.S. Water Replenishment Investments With $60 Million Commitment
August 21, 2026 | ESG Today A reminder that corporate sustainability capital expenditure has not stalled even as ESG reporting politics stay contentious. Google's latest water investment spans five new projects focused on conservation and watershed restoration.
Meet me at New York Climate Week in September 2026?
Chad will be attending New York Climate Week, taking place September 20-27 in New York, NY. If you are in NY and attending any of the events, let’s connect!
📍Sunday, September 20, 2026 - Sunday, September 27, 2026
📫 Email chad.spitler@thirdeconomy.com to schedule time
Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.
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