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
- The planet’s warming faster than predicted - a new study published in Geophysical Research Letters shows planetary warming accelerating over the last 10 years – revealing the Earth has warmed by 0.35 degrees in the last decade. That’s significantly above the 0.2-per-decade average experienced since 1970.
- China unveils new 2030 climate goals - the world’s biggest polluter has set a cautious new target to increase the use of renewables to 25% of total power consumption by 2030, up from 15% today. It also pledged to cut emissions intensity per unit of GDP by 17%.
- Vanguard pays out for Anti-ESG lawsuit – the asset manager has agreed to pay $29.5m after a coalition of US states claimed they plotted with Blackrock to use sustainability initiatives to manipulate coal markets.
- Net Zero Asset Managers (NZAM) initiative relaunches - the coalition of asset managers relaunched with 250 members and a refreshed agenda. While still focused on decarbonisation, it now excludes any direct requirements for managers to reach net zero by 2050, following anti-ESG lobbying in the US.
- Ethnic minority board representation reaches record high – as of 2025, all but two FTSE 100 companies have at least one ethnic minority board member, with minorities now holding 20% of all listed company directorships.
Conflicts have put a spotlight on energy security
Source: BloombergNEF
Why this matters
As the ongoing US/Israeli war with Iran enters its second week, the all-important Strait of Hormuz - where 20% of global oil flows - remains effectively closed.
This puts a spotlight on countries’ energy security and the sources on energy generation they rely on.
Historically, oil price shocks such as the one triggered by Russia’s invasion of Ukraine in 2022 have spurred nations to re-evaluate their energy security and focus on building greater self-reliance. This has often led to a big jump in the use of renewables, as capacity quickly scales up to cover a slowdown in fossil fuel supplies.
The hope is that another such shock today, so soon after the previous one, could have a similarly positive impact for clean energy.
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Check out Investment Director, Meera's latest article, We need to move forward - faster.
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