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
- EU approves €5bn offshore wind project - the European Commission has approved a €5bn package for Denmark to build a series of offshore wind farms, expected to power as much as 25% of the country’s total electricity production - and a major step in Europe’s energy transition.
- TotalEnergies flags 1.5°C net zero planning ‘unfeasible’ - TotalEnergies has said it cannot align to EU net zero targets because limiting global warming to 1.5°C is now seen as unachievable at the current pace of the energy transition. While the company will keep its goal of operational carbon neutrality by 2050, it says its wider climate ambitions will be reassessed to reflect real world constraints.
- New York plans to delay climate targets - the state governor is looking to delay New York’s goal to reduce emissions by 40% by 2030, citing excessive costs and federal push-back. Instead, new regulations will be put in place targeting a 2040 reduction. The state’s 2050 net zero goal will remain unchanged.
- US works with Amazon to recover critical minerals from waste - The US Department of Energy (DOE) has partnered with Amazon to develop ways to recover critical materials from textile and technology waste. The collaboration will attempt to produce graphite from discarded clothing and recover other minerals from end-of-life IT equipment, helping to strengthen U.S. supply chains and reduce reliance on imports.
Spotlight: global coal consumption
Source: Bloomberg Energy Institute. Note: One exajoule of electricity is roughly enough to power Australia, Italy or Taiwan for a year.
Why this matters
While China is often highlighted for their rapid expansion of renewable energy, it remains – alongside India – one of the world’s largest consumers of coal. Despite significant investment in renewables, coal continues to play a central role in meeting energy demand, particularly amid geopolitical tensions and disrupted oil and gas supplies.
This highlights a key tension in the global energy transition: progress in renewables doesn't necessarily translate into an immediate decline in fossil fuel use. Continued reliance on coal risks creating offsetting emissions gains, with implications for climate targets, air quality, and long-term policy direction.
For advisers, this reinforces the importance of taking a balanced, global view of transition risk - recognising that the path to net zero is likely to be uneven, with regional dependencies on high-carbon energy persisting for longer than some may have expected.
Read more from our investment team
Our investment team this week assessed how markets are reacting to heightened geopolitical uncertainty following the latest remarks from the US administration, and what this means for advisers navigating volatility across growth, inflation and cross‑asset dynamics.
You can read the full Weekly Market Update here: Markets on edge as Trump weighs in | Parmenion
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.
