Given President Trump’s lack of interest in—if not disdain for—environmental regulations, coupled with his campaign remarks that global warming is a hoax invented by China, it might seem that shorting the notion of ESG investing might be a good bet. But not so fast, say the folks at index provider MSCI, whose MSCI ESG Research unit is the largest global provider of ESG data and indexes.

In recent years ESG, or environmental, social and corporate governance investing, has gone from being shunted to the kids’ table to having a prominent place at the table with investors of all stripes—particularly among large institutions. Slowly, it’s trickling down to retail investors and, as a result, to the financial advisors who serve them. The ascendency of Donald Trump to the White House might appear to throw a monkey wrench into the ESG machinery, but MSCI says it ultimately shouldn’t matter who is president.

“Focusing on policy shifts alone would be shortsighted,” says MSCI ESG Research in a recent report entitled, “ESG Trends 2017: A Fundamental Rethink?” Cautioning investors not to “over-react to spasms in the Twittersphere,” the report notes that deeper technological, socio-demographic and energy trends are reshuffling the social order and the investment landscape.

Granted, MSCI has some skin in the game and has a reason to defend and promote its ESG-related point of view. But it’s not alone in expressing the viewpoint that sustainability matters. Increasingly, corporations are keying in on this and talking about how to make their operations more sustainable, which feeds into the ESG theme. The MSCI report posits that physical risk, not regulatory risk, is the exposure that companies might need to worry about. And that can apply to investors, too.

One of the major physical risks pertains to water usage, which for companies can mean how much they need and where they get it. To apply that to the level of investor porfolios, the MSCI report points to two exchange-traded funds: the PowerShares High Yield Equity Dividend Achievers Portfolio (PEY) and the iShares Core High Dividend ETF (HDV).

The holdings in these funds demand on average roughly 48,000 cubic meters of water per dollar of sales to operate, ranking both in the top 10% of all funds in MSCI’s coverage as of June 30, 2016. But according to MSCI, the two funds face very different levels of water security.

The share of corporate assets located in regions with high water stress accounted for 39% of total fund assets in the PEY fund, versus a 62% allocation to high-risk regions for HDV, which MSCI says reflects that fund’s weighting on companies such as Xcel Energy, Alliant Energy and WEC Energy Group—all more heavily dependent on water than their peers and all of which operate primarily in drought-prone states such as Texas, Wisconsin and Colorado.

How much difference has that made regarding investment performance? Hard to say, at least for now. Through February 9, the PEY fund had annualized gains of 5.32% since its December 2004 inception, while the HDV fund’s annualized gains since its March 2011 launch was 12.10%.

Granted, HDV wasn’t around for the financial crisis. But MSCI’s point is that climate change is real—regardless of whether it’s man-made, a natural cycle or a combination thereof—and Earth is getting warmer and drier, so pressures from a scarce water supply could negatively impact certain companies more than others.

Water is just one example of a physical risk. Ultimately, says MSCI, building portfolios—both at the institutional and retail levels—to account for those risks could potentially boost long-term investment performance.