ESG Q&A: Navigating uncertainty and debunking myths

Political shifts and the resilience of ESG investing

ESG funds have come under pressure in the first half of 2025. The Trump administration’s rollback of climate protections and anti-DEI executive orders risks contributing to a larger ESG backlash, leading to greater uncertainty in the sector.

Despite recent outflows across the broader sector, Nuveen—TIAA’s wholly owned asset manager—has seen an increase in assets under management (AUM) across its responsible investing portfolio in 2025 and remains committed to delivering long-term resilient returns though responsible investing.

In a recent TIAA webinar, TIAA Wealth Management’s Chief Portfolio Strategist John Canally sat down with Nuveen Global Head of Responsible Investing Amy O’Brien to discuss the state of responsible investing in 2025 and some common myths. The following is an excerpt from their conversation, edited and updated for length and clarity.

CANALLY: Can you share with us TIAA’s overarching responsible investing philosophy?

O’BRIEN: I’ll quickly walk through four different points about what we at TIAA and Nuveen do to add value to our clients’ portfolios and engage with them on responsible investing topics.

At TIAA, our investment philosophy and fiduciary duty centers on delivering long-term, resilient returns. We do not sacrifice returns in exchange for responsible investing practices. It’s important to know that we’re an investment-first, investor-choice-driven organization. That means we prioritize delivering long-term resilient returns, and we consider financially relevant ESG factors because we believe it benefits our investment process.

Secondly, and consistent with that approach, we want our portfolio managers and clients to have as much information as possible to make sound investment decisions. This includes information around ESG factors as part of our investment strategy.

The third overarching philosophy is that, for decades now, and since the first shareholder proposal appeared on the ballot in the early 1970s, our approach means that TIAA and Nuveen directly engage with our portfolio companies. We believe it’s a fundamental part of our investment process and gives us valuable insights into company strategy so we can have as much information as possible.

Lastly, at the firm level, we don’t unilaterally exclude certain investments or divest from investments based on pressure or to take a stance. Since 1990, we’ve offered clients options. Our Social Choice Account was one of the first options to be offered in the United States. Instead, we offer clients the ability to opt into responsible investing-focused strategies if that’s what they choose to do.

CANALLY: Responsible investing has gained significant attention in recent years, but with that attention, we’ve had several myths that have emerged. Could you share some of those myths surrounding the responsible investing space and clarify the reality behind them?

O’BRIEN: There certainly are many headlines right now. The fact is, some of these myths have been around for quite some time. On the one hand, there are critics that might say companies are overstepping in the space, taking on their own agendas rather than investment agendas.

On the other hand, we also have critics who say we don’t go far enough. There are many problems all over the world that require the active and constructive participation of financial service companies. I think some of the myths are about the purpose of what we do, instead of the basis of our core beliefs in responsible investing I referred to above.

I think the other myth that we all have been dealing with for decades is that responsible investing is purposely “concessionary.” Being concessionary is neither the point of responsible investing nor our investing strategy. We’re not here for charity. We are an investment-first firm.

Lastly, one of the myths is also that there’s a niche investor base for responsible investing. In my almost-30-year career, I’ve seen only a growing demand by clients and investor engagement, and we’ve got a lot of data to back that up.

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For more insights on how to incorporate responsible investing into your portfolio and financial plan, talk to your TIAA Wealth Management advisor. Don’t yet have an advisor? Schedule an appointment.

Want to learn more about responsible investing? Get Amy O’Brien’s A Field Guide to Responsible Investing here.