Shri Krishnansen’s (member of Parmenion’s Ethical Oversight Committee) key takeaways from the SRI Services & Partners Good Money Week Event 2025
Last Thursday, I had the pleasure of attending the annual SRI Services & Partners Good Money Week event. For those in the sustainable and socially responsible investing space, this is a key event of the industry calendar - a day where fund managers, financial advisers, distributors, and regulators come together to take the pulse of our sector.
After a few challenging years of political headwinds and media backlash, I went in curious about the mood on the ground. I left feeling pragmatically optimistic.
“Happiness can be found even in the darkest of times, if one only remembers to turn on the light.” — Albus Dumbledore, Harry Potter and the Prisoner of Azkaban (Movie).
Indeed, this event turned on the light for me! For anyone feeling a bit disenfranchised, the message was clear: we’ve been here before, and the industry is maturing, not retreating. Here are my key takeaways from a packed and insightful day.
The “ESG” backlash is a rebrand, not a retreat
The elephant in the room was addressed head-on in what was, for me, the highlight of the day: a session with Solitaire Townsend, Co-Founder of Futerra. She provided a much-needed historical perspective, reminding us that the language of sustainable investing has always been cyclical. From ‘ethical’ to ‘corporate social responsibility (CSR)’ to ‘responsible investing (RI)’ to ‘socially responsible investing (SRI)’ and now ‘ESG’ - the terminology evolves.
Solitaire’s core message was one of hope. This isn't a terminal decline but a "sustainability recession." She convincingly argued that what we are seeing is part of a recurring wave. Her prediction? The current wave is unlikely to turn until early 2027, and when it does, it will almost certainly come back under a different, rebranded name.
The lesson for us as practitioners is to change how we communicate. The activist framing of the past is less effective now. Instead, we should focus on a more compassionate and commercial narrative:
- Investing in innovation and cutting waste
- Managing long-term risks and being accountable to customers
- Supporting communities and treating people fairly
Her best advice was simple. Terms like ‘ESG’ and ‘net zero’ are easily co-opted because they are opaque to the public. A better way forward? Talk about “investing in ways that are good for our children and the planet.” It’s clear, universally understood, and cuts across partisan lines - leaving less room for detraction.
Regulation is maturing: a year of SDR labels
The update from the Financial Conduct Authority (FCA), as well as a separate panel of asset managers provided welcome clarity on the Sustainability Disclosure Requirements (SDR) one year on.
The consensus was that while the process has been rigorous (David Harrison of Rathbones Asset Management mentioned 14 rounds of consultation!), it has been beneficial. Jenn-Hui Tan of Fidelity International noted that the labels have helped lift standards and reduce greenwashing.
Crucially, Louise Chender from the FCA confirmed that while the extension of SDR to portfolio management is currently paused, it has not been cancelled. The anti-greenwashing rule still applies to all products and services, meaning firms must continue to be clear, fair, and not misleading in their sustainability communications.
Advisers: the best has yet to come
For financial advisers, the most interesting update came from Julia Dreblow, founder of SRI Services, on the work of the Adviser Sustainability Group (ASG). The group is developing a toolkit to help advisers navigate sustainability conversations with their clients.
This isn't just about compliance; it's about the heart of suitability. As a member of the ASG rightly pointed out, just because a client doesn't mention their values doesn't mean they don't want them incorporated. Consumer Duty explicitly states that a customer's sustainability needs and preferences must be considered.
This initiative promises to provide pragmatic guidance, frameworks, and tools to help advisers unlock deeper client relationships. In a market where many consumers feel intimidated by investing, being able to connect on values could be the single biggest engine for growth for advisory firms, potentially unlocking an entirely new client base.
This focus on practical application was echoed in a lunchtime panel discussion with model portfolio service (MPS) managers. It was great to hear from Parmenion’s own Mollie Thornton, who reminded the audience that catering to client values is not a new phenomenon. Parmenion, for instance, has been running ethical MPS solutions for over 13 years, long before the recent regulatory spotlight and labelling regime. She highlighted how their solutions have evolved to meet a wide spectrum of investor preferences, from purely exclusionary approaches to solutions-first and engagement-led strategies across both active and passive profiles. It was a salient reminder that the tools to meet client needs are already well-established and constantly improving within the industry.
In fact, Parmenion's ESG solutions feature an extensive range of funds, both SDR-labelled and unlabelled (e.g. offshore or not seeking a label), which are carefully selected for their mandates by Parmenion and its external Ethical Oversight Committee (of which I am a member) - proving that labelling, while beneficial for the industry, was never a barrier to building holistic sustainable investing solutions that cater to a wide range of consumer values.
Secular tailwinds: sustainability is inevitable
Beyond the regulatory and communication shifts, it was the discussion of broader economic trends that provided the most compelling case for optimism.
- The AI revolution: As pointed out by Siân Jones of Sarasin & Partners, the enormous power and water demand from AI data centres makes the transition to renewable energy and efficient infrastructure an economic necessity, not just an environmental one.
- Global corporate adoption: The momentum is global. Peter Uhlenbruch from the Science Based Targets initiative (SBTi) shared that over 12,000 businesses now have science-based targets, with China being the fastest-growing country for adoption.
- Efficiency as a driver: Samuel Adams of Vert Asset Management offered a brilliant reframing: sustainability isn't a constraint; it’s a way to “do more with less”. This positions it as a driver of efficiency and innovation.
A final word: reasons to be cheerful
My overarching takeaway from the day is that our industry is at an inflection point. The 'ESG' gold rush of 2020-2022 is over, and we are now in a period of maturation. The industry infrastructure is stronger, the regulation is clearer, and the economic case is more compelling than ever.
Rather than being in a trough of decline, we are simply experiencing growing pains. The headwinds are real, but the signs of hope and the long-term opportunities are undeniable. Now is the time to refine our approach, deepen our expertise, and prepare for the next wave of growth.
Parmenion are committed to helping financial advisers and their clients navigate this evolving landscape. The dedicated Ethical Oversight Committee ensures sustainable investment solutions are robust, transparent, and aligned with the principles discussed at this event.
Curious about how values and investment can work hand in hand?
At Parmenion, we help advisers turn client priorities into practical, ethical investment strategies. Get in touch to explore how.
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