This week in ESG
Here’s what’s been making the headlines in the world of sustainability and responsible investing this fortnight, and what advisers should know:
Key highlights for advisers
- US exits UN climate framework – the Trump administration’s move would make the US the first country ever to withdraw from the United Nations Framework Convention on Climate Change (UNFCCC). The 1992 climate treaty – with almost universal global participation – underpins both the 1997 Kyoto Protocol and 2015 Paris Agreement.
- BlackRock loses $6bn mandate over ESG concerns – Dutch pension fund PME Pensioenfonds has ended its relationship with Blackrock following an ESG-based review of all its asset managers. They found Blackrock didn’t align with their vision and principles. The decision reflects growing scrutiny from asset owners, who increasingly expect managers’ actions to match their stated principles. ESG is no longer a side consideration, it’s a core part of manager selection.
- New York tightens emissions reporting – New York has finalised a rule requiring large emitters across sectors such as power, fuel supply, waste and industrial operations to report their annual GHG emissions from 2027. This positions New York as a key pro-sustainability hub during larger federal rollbacks.
- Microsoft and Iberdrola launch new energy partnership – the two companies have signed their first European long term Power Purchase Agreements (PPAs) in Spain. Microsoft will secure 150MW of wind power to support their 100% renewable energy goal, while expanding collaboration with Iberdrola on AI capabilities across their operations. It’s a clear example of big tech driving demand for scalable clean energy.
- Meta steps into nuclear energy – Meta has signed a major agreement with TerraPower to develop up to eight advanced nuclear reactors in the US, capable of delivering up to 2.8GW of power. This marks Meta’s largest commitment to nuclear energy and should help support its growing data-centre needs.
Spotlight - green debt hits new highs
Source: Bloomberg Intelligence, as at 20th December 2025
Why this matters
Global green bond and loan issuance climbed to a record $947 billion in 2025, showing that investors continue to channel capital into climate aligned assets, despite significant political pushback in both the US and Europe. The Asia Pacific region was a major engine of growth, raising $261bn, with China alone contributing a record $138bn in green bond issuance.
What’s driving this momentum? Rising energy demand driven by AI, cooling, and electrification is reframing green investment as essential infrastructure, not a niche ESG add-on. Even as the US rolls back clean energy subsidies and Europe eases environmental rules, the widening gap between political resistance and a broader market commitment to long term decarbonisation is still firmly intact.
Looking ahead: ESG in 2026
For advisers looking to stay ahead of these trends, Julia Dreblow – member of Parmenion’s Ethical Oversight Committee and the Founding Director of SRI Services – shares her reflections on where she hopes sustainable and ethical investing can make the biggest difference. You can read the full insight here: ESG Predictions for 2026.
Want to hear more?
Join our CPD accredited Let’s Talk Markets webinar, where Senior Investment Manager Mollie Thornton will review ESG in 2025 review and discuss what it means for 2026. Join here.
You can also read Mollie's latest article Parmenion ESG solutions - 2025 review and what it means for 2026 for even more insights.
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Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
