Trump’s return to Davos relegates sustainability to a side event

In 2019, Greta Thunberg gave her famous “Our House Is On Fire” speech at the World Economic Forum in Davos. The speech came as climate change discourse became mainstream among the business elite. In the years that followed, sustainability topped the agenda at pretyy much every business event the world over.

Seven years on, the mood in Davos has changed. Sustainability and diversity have taken a back seat, AI and growth top the agenda, and there’s a new star of the show – US President Donald Trump.

Despite sparking tariff disputes, rolling back climate pledges, and this month making headlines renewed threats to invade Greenland, the World Economic Forum has rolled out the red carpet for Trump, who is attending with the largest US delegation ever sent to the event.

Sustainability takes a back seat

Economic confrontation between nations is the number one near‑term concern among more than 1,300 economic experts surveyed worldwide, according to the WEF's annual Global Risks Perception Survey released last week.

In that ranking, perceived risks from extreme weather over the next two years dropped from second to fourth place, while pollution moved from sixth to ninth. Anxiety over critical changes to Earth systems and biodiversity loss also slipped several positions.

However, when asked about their sharpest concerns over a longer, 10‑year period, respondents still placed environmental issues among the top three risks – a distinction many venture capital investors may be watching closely, given that impact bets often play out over decades, not years.

What Davos could mean for impact investing

Trump’s reelection in early 2025, and the ensuing tariff pressures and geopolitical tensions, pushed sustainability further down the agenda, which had ripple effects across the world of venture capital.

Some traditional climate or impact funds rebranded, while others redirected capital toward AI and defence technologies, often under the broader banner of “resilience.”

As Trump travels to Davos, security and defence appear set to cement themselves among the priorities of both policymakers and investors. Technologies currently in political favour – such as AI and energy solutions for data centres – are likely to benefit, while other sectors may receive less attention.

Current geopolitical and economic climate is likely to influence how capital is deployed now, how venture capitalists pitch to their limited partners, and which kinds of solutions receive the most attention and investment. And if the mood in Davos is any guide, 2026 may be another year where AI, resilience, and security top the agenda, leaving sustainability framed as “tomorrow’s problem.”