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
London hits legal NO₂ pollution levels for the first time – London’s Ultra Low Emission Zone (Ulez) - which levies daily charges for more polluting vehicles - has helped bring nitrogen dioxide (NO₂) levels down to the legal limit for the first time since the rules were introduced in 2010. A sign that sustained policy can deliver measurable environmental impact.
TotalEnergies found guilty of greenwashing – A French court ruled that TotalEnergies misled consumers with deceptive sustainability claims about its carbon neutrality aims and energy transition goals. The company must now remove these statements from its website or face daily fines.
ESG ratings under FCA oversight by 2028 – The UK has confirmed that ESG ratings companies will need FCA authorisation within the next three years, with new standards for transparency, governance, and conflicts of interest. This could help bring much needed consistency and confidence to how sustainability credentials are assessed.
Net Zero Asset Managers (NZAM) returns – The NZAM coalition is back in action after a pause following political pressure and some high-profile US exits. The refreshed approach no longer mandates 2050 net zero targets, instead participating asset managers are free to set their own climate targets.
Clean energy to create 400,000 UK jobs – The UK’s decarbonisation plan is set to provide a huge employment boost. By 2030 it could create 400,000 new roles across renewable energy installation, managing smart grids, and decarbonising more traditional industries.
Chart spotlight - banks earn more from green financing than fossil fuels
Source: Bloomberg: 2025 data to 24th October
Why this matters
Green financing continues to become an ever-larger share of banking activity – and in 2025, the gap with fossil fuels has widened noticeably. It’s a striking reminder that political headwinds in the US don’t necessarily control markets. A fact that can also be seen in the performance numbers for clean energy stocks year-to-date, which have substantially outperformed.
As green industries continue to expand to meet the planet’s climate goals, the need for financing will only accelerate. And with the balance of earnings tipping away from fossil fuels and into greener industries, we may see the banking sector becoming much more supportive of decarbonisation.
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.
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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.
