This week in ESG
Here’s your round-up of ESG news – from Net Zero exits and greenwashing fines to new green regulations.
Key highlights
🎯 More banks leave the Net Zero Banking Alliance – after a full US exodus, and HSBC’s departure last month, UBS and Barclays have now exited the UN-backed climate financing coalition. Both say they’ll work towards similar climate goals independently.
⚡ US - South Korea energy deal sparks fossil fuel concerns – a new tariff agreement includes a commitment for South Korea to purchase $100bn of energy from the US – likely a large amount of crude oil and Liquefied Natural Gas (LNG). Such a commitment could slow down the country’s renewable energy ambitions.
🌳 China commits to new green finance taxonomy – from October, the new wide-ranging classification system for bonds and loans will help determine which activities can receive green funding.
🚫 Shein fined €1m for greenwashing – the fine, issued in Italy, was charged for misleading clients with its environmental claims and promotions of clothing. This was hot on the heels of a €40m fine issued in July in France for displaying misleading communications on price and product environmental impact.
📉 Orsted shares plummet – the market questioned the offshore wind leader’s outlook after it was forced into a share sale – following spiralling costs and continued tough operating conditions in the US. Orsted’s focus on wind leaves it trailing more diversified renewable competitors and those focused on other areas of the market, like electricity grids.
Chart spotlight - US sustainability carries-on quietly
Source: EcoVardis, 2025
Why this matters
The chart above is taken from The 2025 US Business Sustainability Landscape Outlook, an EcoVardis report which surveyed 400 US company executives about their outlook for sustainability in the country.
The chart reveals a striking trend: since the start of 2025, 87% of companies surveyed have maintained or increased their investment in sustainability. Despite the US administration’s tough anti-ESG stance, rather than cut back, most companies have simply turned down the volume. The work continues, just with less fanfare, as companies quietly push ahead on their sustainability goals.
It’s a reminder that, even in challenging policy environments, sustainability can press on. After a turbulent period for ethical investing, the first half of 2025 has offered reasons for renewed optimism. In our article Mid-year momentum: ESG investing in 2025 we take a closer look at performance so far, and the reasons we’re optimistic about what’s ahead.
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