The best examples of thematic investing in ESG: real-life examples investors can learn from

Real-life examples of thematic investing in ESG you can actually buy

If you want examples of thematic investing in ESG: real-life examples, the easiest place to start is with listed funds and strategies that are already gathering billions in assets. These are not theoretical models; they’re vehicles investors are using today to express specific ESG themes.

Below are some of the best-known real examples across climate, clean energy, biodiversity, water, social equity, and governance-focused strategies. I’m not endorsing or recommending any of these – think of them as live case studies that show how thematic ESG works in practice.

Climate transition: decarbonization as an investable theme

The climate transition is one of the clearest examples of thematic investing in ESG. The idea is simple: as the world moves toward net-zero emissions, capital will shift from high-carbon to low-carbon business models. Investors build portfolios around companies that stand to benefit from that shift.

One widely cited example of this approach is the family of climate-aware equity strategies built around the MSCI Climate Index series. These indices tilt toward companies with lower carbon intensity, credible emissions reduction targets, and exposure to climate solutions, and away from firms with high fossil fuel reserves or unmanaged transition risk. Institutional investors use these as core equity allocations that still track broad markets but lean into the climate theme.

On the active side, climate-transition mutual funds and SMAs often hold:

• Industrial companies that make energy-efficient equipment or grid infrastructure
• Utilities shifting aggressively from coal to renewables
• Software firms that enable energy management, carbon accounting, or climate risk analytics

The theme is not just about pure-play green stocks. It’s about identifying companies across sectors that are positioned to survive and thrive as policy, technology, and consumer behavior respond to climate change. For context on how regulators and policymakers are thinking about climate risk, the U.S. Environmental Protection Agency (EPA) provides detailed climate science and policy background at epa.gov/climate-change.

Clean energy and electrification: classic examples of thematic investing in ESG

Clean energy is probably the most recognizable ESG theme, and it provides some of the best examples of thematic investing in ESG: real-life examples you’ll find.

Exchange-traded funds (ETFs) focused on renewable energy and electrification are textbook cases. They typically concentrate on:

• Solar and wind equipment manufacturers
• Battery and energy storage companies
• Electric vehicle (EV) makers and charging networks
• Power semiconductor and grid technology firms

A typical clean energy ETF might hold a concentrated basket of 40–80 stocks that derive a large share of revenue from renewable power, energy efficiency, or electrification. That concentration cuts both ways: performance can be volatile, but the theme exposure is very clear.

Investors often use these funds as a satellite position around a diversified core portfolio. They’re not trying to replace broad equity exposure; they’re using thematic ESG sleeves to tilt toward structural growth areas tied to the energy transition.

If you want to sanity-check the macro backdrop, the U.S. Energy Information Administration (EIA) regularly publishes data and projections on renewables and energy demand at eia.gov. Those datasets are often used by managers to justify long-term clean energy themes.

Nature, biodiversity, and sustainable agriculture: newer real examples

Until a few years ago, nature and biodiversity were niche topics. That’s changing quickly, and it’s giving investors fresh examples of thematic investing in ESG: real-life examples that go beyond carbon.

Biodiversity-themed funds and strategies are starting to target companies that:

• Restore degraded land or protect natural habitats
• Provide sustainable forestry and certified wood products
• Develop precision agriculture tools that reduce fertilizer and pesticide use
• Offer nature-based solutions such as reforestation projects or wetland restoration

A biodiversity equity strategy might hold a mix of agricultural technology firms, sustainable packaging companies, and environmental services providers. The unifying idea is that ecosystem health is becoming a financial risk factor, not just an ethical concern.

On the fixed-income side, green bonds and sustainability-linked bonds are increasingly tied to nature-related outcomes. For example, a sustainability-linked bond issued by a food company might pay a higher coupon if it fails to meet deforestation or water-use targets. That structure turns biodiversity into a measurable theme inside a bond portfolio.

If you want to understand why biodiversity is moving onto investors’ radar, the United Nations and academic institutions such as the University of Cambridge provide accessible overviews of nature-related risks and policy trends. A good starting point is the UN’s resources on biodiversity and ecosystems at un.org.

Water scarcity and infrastructure: a focused ESG theme hiding in plain sight

Water is a classic example of a theme that is both environmental and economic. Water scarcity, aging infrastructure, and pollution are driving large capital needs in treatment, distribution, and monitoring.

Water-focused equity funds give clean, narrow examples of thematic investing in ESG in practice. Their portfolios often include:

• Companies that design and build water treatment plants
• Pipe and pump manufacturers for municipal and industrial systems
• Metering and sensor companies that help detect leaks and manage usage
• Testing and analytics firms that monitor water quality

This theme is attractive to some investors because water demand tends to be stable, and many water-related businesses operate in regulated or oligopolistic markets. At the same time, climate change, urbanization, and stricter environmental standards create growth tailwinds.

A water theme can live inside equities, infrastructure funds, or even municipal bonds that finance water projects. For investors looking for real examples of thematic investing in ESG that have tangible, local impact, water infrastructure is often near the top of the list.

Social themes: gender, diversity, and financial inclusion

ESG is not just about the “E.” Some of the most interesting examples of thematic investing in ESG: real-life examples are on the social side.

Gender and diversity-focused equity strategies

Gender-lens investing has moved from concept to implementation. Equity strategies that track gender or diversity indices provide a clear example of social thematic investing.

These strategies typically:

• Tilt toward companies with higher representation of women or underrepresented groups in leadership
• Consider pay equity metrics and inclusive HR policies
• Exclude firms with persistent controversies around discrimination or harassment

The thesis is that diverse leadership and inclusive cultures can support better decision-making and risk management. While the academic evidence is still evolving, several studies from universities and organizations like the World Bank and International Finance Corporation have linked diversity to aspects of corporate performance.

Financial inclusion and access to basic services

Another social theme centers on financial inclusion and access to basic services such as healthcare, education, and affordable housing.

Real-world examples include:

• Microfinance and inclusive finance funds that provide capital to institutions serving low-income borrowers
• Public equity strategies focused on digital payments, low-cost remittances, and mobile banking
• Impact-oriented real estate funds that develop or preserve affordable housing

These strategies often straddle the line between ESG integration and impact investing, but they clearly qualify as examples of thematic investing in ESG because they target a specific social outcome linked to long-term structural change.

For background on why social determinants such as housing and income matter for long-term outcomes, public health sources like the U.S. Centers for Disease Control and Prevention (CDC) offer useful context at cdc.gov/socialdeterminants.

Governance and transparency: less flashy, still thematic

Governance rarely gets the headlines that climate or clean energy do, but it can still be the anchor for a thematic ESG strategy.

A governance-focused equity fund might concentrate on companies with:

• Strong shareholder rights and independent boards
• Transparent financial reporting and low corruption risk
• Long-term incentive structures aligned with sustainable value creation

In emerging markets, governance themes are particularly salient. Some strategies explicitly seek out firms that exceed local governance standards, on the theory that better-run companies are more likely to survive political and macro shocks.

These may not be the loudest examples of thematic investing in ESG: real-life examples, but they illustrate an important point: a theme can be about process and oversight, not just products and technologies.

How investors use these examples of thematic investing in ESG in real portfolios

Seeing examples of thematic investing in ESG is helpful; the next question is how investors actually use them.

In practice, thematic ESG positions tend to play one of three roles in a portfolio:

1. Satellite growth exposures
Many investors keep a globally diversified core equity allocation, then add small satellite positions in themes like clean energy, water, or biodiversity. The goal is to capture long-term growth potential in areas they believe are underrepresented in broad indices.

2. Risk management tilts
Climate-transition strategies and low-carbon indices often serve as replacements for traditional index funds. Investors want to stay broadly invested but reduce exposure to high-carbon assets that may face regulatory or stranded-asset risk.

3. Values alignment and impact
Gender-lens, financial inclusion, and nature-focused strategies are frequently used by foundations, family offices, and mission-driven investors who want portfolios that reflect their values and contribute to measurable outcomes.

Across all three use cases, the same warning applies: a theme is a tool, not a guarantee. Even the best examples of thematic investing in ESG can underperform for long stretches if the market narrative moves against them. Concentration, valuation risk, and policy risk are all very real.

2024–2025 trends shaping the next wave of ESG thematic examples

A few developments are shaping how the next generation of examples of thematic investing in ESG: real-life examples will look:

• Regulation and disclosure: New sustainability reporting rules in the EU and proposed climate disclosure requirements in the U.S. are pushing companies to publish better data. That gives thematic managers more raw material to work with when constructing climate, nature, or social themes.
• Data quality and greenwashing risk: Investors have become far more skeptical of vague ESG labels. Thematic funds are under pressure to show clear links between their holdings and the stated theme, and to report measurable outcomes where possible.
• Cross-cutting themes: Instead of narrow silos, more strategies are blending themes – for example, climate plus biodiversity, or social inclusion plus digital infrastructure. Expect future real examples of thematic investing in ESG to be more multi-dimensional.
• Fixed income and private markets: Equity has dominated ESG thematics so far, but green bonds, sustainability-linked loans, and private market impact funds are now providing additional examples of how themes can be expressed across asset classes.

For investors, the implication is straightforward: themes are maturing. The bar is higher, but the toolkit is broader.

FAQs about examples of thematic investing in ESG

What are some common examples of thematic investing in ESG?

Common examples of thematic investing in ESG include climate-transition equity funds, clean energy and electrification ETFs, water and infrastructure strategies, biodiversity and sustainable agriculture funds, gender and diversity-lens portfolios, financial inclusion strategies, and governance-focused emerging market funds. All of these use ESG-related forces as the organizing principle for security selection.

Can you give an example of a climate-focused ESG theme in practice?

A straightforward example of a climate-focused ESG theme is a global equity fund built around a low-carbon or climate-transition index. The fund overweights companies with lower emissions intensity, credible net-zero targets, and products that support decarbonization (such as grid equipment or building efficiency technologies), while underweighting or excluding firms with large fossil fuel reserves or unmanaged transition risk.

Are thematic ESG funds more risky than traditional funds?

They can be. Most examples of thematic investing in ESG: real-life examples show higher concentration in specific sectors or technologies than broad index funds. That concentration can amplify both upside and downside. Investors should treat thematic ESG allocations as focused exposures, understand the underlying holdings, and size positions accordingly.

How do I evaluate whether a thematic ESG fund is credible?

Look for a clear link between the stated theme and the actual portfolio. Ask how the manager defines the theme, what percentage of revenue must be tied to it, how controversies are handled, and what metrics are used to track outcomes. Comparing the fund’s disclosures with independent information from sources like regulators, academic research, or international organizations can help you spot mismatches or greenwashing.

The bottom line: the best examples of thematic investing in ESG: real-life examples are not marketing slogans. They are strategies where the holdings, the data, and the long-term thesis all line up around a specific environmental, social, or governance force reshaping the economy. If you can clearly explain that link in plain language, you’re probably looking at a real theme – not just a label.