ESG highlights for financial advisers
UK launches £2bn Clean Energy Wealth Fund - The UK has launched a new £2bn Energy Wealth Fund, using tax revenues from North Sea oil and gas production to invest in renewable and low-carbon energy infrastructure, aiming to support the net-zero transition and strengthen energy security.
US proposes weakening methane rules for oil and gas producers - The US Environmental Protection Agency (EPA) has proposed rolling back methane emissions rules for the oil and gas sector, arguing the changes could reduce costs and boost domestic energy production. Critics argue the move could undermine efforts to tackle methane, one of the most powerful greenhouse gases.
Iberdrola raises $1.6bn through new green bond issuance - Spanish energy company Iberdrola has raised $1.6bn through a green bond issuance in the US, with proceeds earmarked for electricity networks, including transmission and energy facilities, highlighting continued strong investor demand as the sector regains its popularity.
EU rules out new climate finance commitments ahead of COP31 – The EU has ruled out making new climate finance pledges at this year’s COP31 climate change conference, (primarily used to support developing nations) arguing the focus should be on cutting emissions and delivering on existing funding promises. The move highlights the growing tensions between developed and developing nations over who should fund the climate transition.
Spotlight: sustainable investment continues to rise
Source: Morgan Stanley Sustainable Signals 2026.
Why this matters
A new global investor survey from Morgan Stanley shows that more than 80% of asset owners and asset managers expect to increase allocations to sustainable strategies over the next two years.
That’s a really encouraging outcome given the sectors’ recent difficulties. However, while this is an overall increase compared to last year, only a small minority now anticipate significant increases of more than 10%. At the same time, less than 1% plan to decrease their exposure.
While the top reason cited for increasing sustainable investments was more growth opportunities, respondents also viewed the rising materiality of sustainability-related risks as a key factor. The survey also shows that European investors remain the most optimistic, while investors in North America and APAC are more likely to maintain current allocation levels.
The sustainable investing story isn't going away. While enthusiasm has cooled from previous highs, investors continue to see sustainability as both a growth opportunity and a way to manage long-term risks. The fact that so few plan to reduce allocations suggests confidence in the theme remains strong.
Parmenion Investment Management wins Best ESG Provider 2026 for the second year running
We’ve been committed to sustainable investing since 2012, with a well-established, multi-award-winning ethical proposition. Our ESG Growth range offers four distinct ESG styles, helping advisers match investments more closely with their clients’ individual views and beliefs while accessing a broad cross-section of the investible universe.
Read more here: Best ESG Provider for the second year running
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