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
- UK commits £15bn to cleaner, warmer homes – the government has unveiled its £15bn 'Warm Homes Plan', aiming to upgrade up to five million homes with solar panels, heat pumps and better insulation by 2030. Alongside emissions reductions, the plan is designed to lift around one million people out of fuel poverty.
- Science based targets hit a milestone – more than 10,000 companies now have climate targets aligned with the Science Based Targets initiative. Over 2,800 of these were validated in 2025 alone, meaning targets now cover more than 40% of global market value. A sign that climate commitments are moving further into the mainstream.
- Mexico sets a new benchmark for sustainable bonds – Mexico has issued a record €4.75bn of ESG-labelled bonds, the largest ever from a Latin American country. Proceeds will fund projects linked to reducing inequality, improving health and wellbeing, and expanding access to quality education.
- Record breaking offshore wind auction in the UK – the UK has completed Europe’s largest offshore wind auction to date, securing contracts for 8.4GW of new capacity, enough to power more than 12 million homes. German firm RWE emerged as the biggest winner, taking 6.9GW of the total.
- Microsoft targets greener data centres – Microsoft has pledged that new data centres will not push up local electricity prices and will minimise water use. Plans include fully funding their power needs, supporting grid upgrades, improving efficiency, and replenishing more water than they consume.
Spotlight - clean energy dominates new investment
Source: World Energy Investment 2025, International Energy Agency
Why this matters
Global energy investment continued to rise in 2025, driven partly by national energy security concerns. Fossil fuel importing countries increasingly looked to local clean energy to reduce reliance on external suppliers. As a result, fossil fuel investment fell for the first time since 2020.
The shift is striking. For every $1 invested in fossil fuels in 2025, more than $2 went into clean energy. As the chart highlights, China remains the clear leader in total clean energy investment, outspending all other regions. Encouragingly, the EU continues to show transition leadership, with fossil fuels accounting for only a small share of overall energy investment.
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.
For a closer look at how this translates into our proposition, Senior Investment Manager Mollie also reflects on the past year and what lies ahead in Parmenion ESG solutions - 2025 review and what it means for 2026 for even more insights.
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity.
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.
