With Earth Day this week, many of us are thinking more critically about our personal impact on the planet. But with rising costs, volatile markets, and greenwashing concerns, a growing question is echoing across investor circles:

Is green investing still worth it?

The short answer? Yes—but it’s evolving.

1. The “Green Hype” Isn’t Gone—It’s Just Maturing

A few years ago, green investing was the buzz. Anything labeled ESG (Environmental, Social, and Governance) seemed to attract capital. But fast forward to 2025, and the conversation is a bit more nuanced.

Investors are no longer throwing money at “green” funds just because they sound eco-friendly. They’re asking harder questions:

• Is this investment actually reducing emissions?
• Is this company being transparent about its supply chain?
• Am I getting both a return and an impact?

Green investing hasn’t faded—it’s just growing up. Now, it’s less about buzzwords and more about measurable outcomes.

Investor takeaway: Look for funds or companies with clear sustainability metrics (like carbon reduction targets, water conservation practices, or circular economy initiatives). Ask your advisor what ESG means to them—it’s not always defined the same way.

2. Performance Isn’t the Problem—Clarity Is

There’s a misconception that green investments underperform. In truth, ESG funds have held their own—especially those that are well-diversified and avoid hype-driven sectors. What’s changing is how we evaluate them.

We’re now looking at long-term resilience:

• How does this company adapt to stricter regulations?
• Is it positioned to survive climate-related disruptions?

Investors are beginning to see that sustainability isn’t just a moral decision—it’s a risk management strategy.

Investor takeaway: Don’t compare ESG to traditional benchmarks without considering risk. Think of green investing as long-term insurance against climate risk, regulatory shocks, and shifting consumer values.

3. Regulation Is Catching Up (Finally)

One of the biggest concerns with green investing? Greenwashing. But that’s beginning to change.

In Canada, the Office of the Superintendent of Financial Institutions (OSFI) has issued new guidelines requiring financial institutions to disclose climate-related financial risks. Globally, frameworks like the International Sustainability Standards Board (ISSB) are pushing for more accountability and transparency.

This means investors will have more clarity than ever before—and fewer empty promises.

Investor takeaway: Look for companies that disclose climate risks in line with these new standards. If you’re investing through funds, check how they screen their holdings.

5.Action Over Perfection

If Earth Day has you reflecting on how to make a difference, remember: you don’t have to go all in on green investing to do good.

Even small shifts—like allocating a portion of your portfolio to sustainable ETFs or reviewing your mutual funds for ESG screening—can make a meaningful impact over time.

Investor takeaway: Start small. Talk to your advisor about integrating ESG principles into your plan without overhauling your entire strategy. Progress beats perfection.

Final Thoughts

In 2025, green investing is still relevant—but it’s smarter, deeper, and more intentional. Earth Day is a reminder that where we put our money reflects what we value. Whether you’re investing for your future, your kids’ future, or the planet’s, this is a conversation worth having.

Ready to explore how green investing fits into your financial plan? Let’s talk.