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
Trump reignites climate controversy – speaking at the UN, President Trump called climate change the ‘greatest con job in the world’. Despite overwhelming evidence, he dismissed the science and predictions on climate change and warned that green policies harm economic growth.
UK investors double down on ESG – the latest ESG Attitudes Tracker (400 investors 200 intermediaries) shows an improvement in sentiment towards ESG investing. Interestingly, Trump’s anti-ESG stance appears to have had the opposite effect – prompting more UK investors to engage with responsible investing themes.
Net Zero Banking Alliance (NZBA) disbands – formed in 2021 to help banks transition to net zero and set financed emissions targets, the NZBA has now officially ceased operations following a string of high-profile exits. The move highlights ongoing challenges in coordinating global climate commitments across the finance sector.
China steps up its climate ambition – China has announced new 2035 targets: reducing its greenhouse gas emissions by 7-10% from peak levels, expanding wind and solar capacity to more than six times 2020 levels, raising the share of non-fossil fuels in energy consumption to over 30%, and boosting forest stock to more than 24bn cubic metres.
China’s clean energy exports hit new record – China continues to dominate in many areas of renewable energy, with exports of EVs, solar panels, batteries and related technologies hitting a record $20bn in August. Despite being a large emitter in absolute terms, China’s clean energy expansion shows no sign of slowing.
Chart spotlight - China profits from clean energy exports
Source: DOE, EIA, China GACC, Ember & Bloomberg calculations (Data through 2025 to July)
Why this matters
While some countries, such as the US, are pushing back from climate goals, others – notably China and the EU – are accelerating investment in renewables. The data highlights that sustainability isn’t just an environmental imperative, but it can also be economically advantageous too.
China’s record-breaking clean energy exports show that backing green technology can deliver strong commercial returns alongside environmental progress. And as AI-driven demand for electricity grows, the structural case for renewable and low-carbon energy investment only strengthens.
Good Money Week - insights for advisers
Wondering how ESG trends translate into actionable insight? These two articles dig into what Goodstock 2025 taught us – and what it means for your client conversations:
- Good Money Week: why stewardship matters more in 2025 – exploring how stewardship is evolving in the ESG era
- Six things I learnt from Goodstock 2025 – Cleona Lira's lessons and key takeaways from ESG thought leaders
These are must-reads if you want to sharpen your ESG narrative and deepen your engagement with clients.
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.
