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 wind energy ban overturned – a U.S. federal court has struck down Trump’s executive order blocking permits for onshore and offshore wind energy, instead siding with a coalition of 18 state attorney generals who argued it exceeded presidential authority and threatened clean energy expansion.
- FCA to regulate ESG ratings providers – the FCA has proposed new rules to regulate ESG ratings providers to improve transparency, reliability and clarity. Rules will cover governance, and conflict of interest management. The industry consultation on the changes remains open until March 2026.
- Adds banned for greenwashing – the UK’s Advertising Standards Authority has banned ads from Nike, Superdry, and Lacoste on the grounds they could be misleading, after all three used the word ‘sustainable’ to describe their products without substantiation.
- EU simplifies sustainability reporting – EU lawmakers have agreed to simplify and significantly roll back their corporate sustainability requirements. This includes raising the minimum employee and turnover thresholds required to stay in-scope, exempting large parts of the market.
- Green skills in high demand – new analysis from LinkedIn shows the growth in roles requiring green skills (e.g. sustainable finance, ecosystem management, waste prevention) continues to outstrip the number of workers demonstrating such skills – making sustainability a key area to watch.
Spotlight - green outperformance
Source: Bloomberg
Why this matters
After a tough couple of years, clean energy stocks have seen a huge comeback in 2025 – outperforming not just their fossil fuel equivalents, but big tech and AI indices too.
Green energy stocks have really benefitted from a combination of lower interest rates, increasing power demand from AI data centres, and a wider push towards renewables as many countries look to decarbonise their economies. Year-to-date, to 11th December, this has led to the Bloomberg Clean Energy Transition index rising over 44%, compared to 24% for the Mag 7 and just 11% for the Global Oil Index.
Yet despite this strong rally, average clean energy valuations are still trading below their longer term averages, suggesting this green rally could have further to go.
Best ESG Provider 2025
We’re delighted to share that Parmenion Investment Management has been named Best ESG Provider at this year’s Moneyfacts Group Awards.
A huge thank you to everyone who voted and continues to support our journey in making responsible investing simpler, smarter, and more accessible for advisers and their clients.
As this is our final ESG update of 2025, we look forward to bringing you more insights, trends, and opportunities in 2026 – keep your eyes peeled for our 2026 ESG predictions.
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.
