This week in ESG
The US rejected the UN Sustainable Development Goals (SDGs), there’s a Scienced Based Targets Initiative (SBTi) upgrade, and China seeks to launch their first green bond.
Key highlights
🚫US rejects UN Sustainable Development Goals (SDGs)
- The Trump administration continues its anti-ESG stance, stating it “rejects and denounces” the initiative. This is because the set of 17 goals, which aim to improve sustainability globally by 2030, conflict with the administration's priorities.
📝SBTi releases new net zero standard
- The Scienced Based Targets Initiative (SBTi) has released its initial draft of its new Corporate Net Zero Standard, introducing explicit Scope 2 target-setting requirements and tightening expectations for Scope 3 emissions.
🌳China prepares to launch first green bonds
- In line with the growing trend over recent years, China has become the latest government to launch green bonds. The yuan-denominated bonds, with 3 and 5-year maturities, are due to be issued in London.
🤚UK regulators scrap stricter DE&I rules for financial services
- The FCA and PRA had launched a consultation in late 2023 aimed at improving Diversity, Equity and Inclusion (DE&I) in the financial sector, however, they've rolled back plans responding to industry concerns over regulatory burden.
✅BlackRock boosts sustainability characteristics of almost $100bn of AUM
- In line with new fund naming rules introduced by the European Security & Markets Authority (ESMA), the world’s largest asset manager has improved the sustainability characteristics of $92bn of funds to align with the standards.
Chart spotlight - solar power continues to grow
Source: Bloomberg NEF. Note: Capacity recorded is that of the solar modules
The chart above shows the forecast growth of new solar power capacity - specifically, solar photovoltaics (solar panels) - over the next decade.
Why this matters
Despite recent challenges in the ESG and climate space, the growth of renewable energy continues across the world. The data highlights the continued growth of the solar industry, especially from China. This bodes well for real world sustainability and the transition to net zero, which presents promising opportunities for ESG-focused investing over the long term.
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