This week in ESG
Net Zero group departures, US offshore drilling bans, and wind becomes the UK's largest power source.
Key highlights
🏦 All major US banks leave Net Zero Banking Alliance (NZBA) – Wells Fargo, Bank of America, Citigroup, Morgan Stanley, and JPMorgan have all left NZBA – the UN-backed organisation focused on steering bank financing activity towards net zero. This happened over the last month following US political pressure.
⛔ Blackrock exits Net Zero Asset Managers – the world’s largest asset manager left the industry’s equivalent of NZBA. The decision was made after facing criticism of its climate policies from Republican lawmakers in the US.
💳 Californian oil companies earn carbon credits – some inefficient oil companies are building solar panels to earn carbon credits from the state. A number of these companies have used credits to help subsidise, and expand, their oil production operations.
🌊 Biden bans offshore drilling across large areas of US Ocean – weeks before Trump assumes the US presidency, Biden has banned offshore drilling. The ban spans across numerous locations to protect vast coastal areas surrounding the US. The nature of the ban could make it difficult for Trump to undo.
Chart spotlight - wind becomes UK's largest power source
Source: Bloomberg; NESO, January 2025
The chart shows the composition of UK electricity power generation over time. This includes energy storage and electricity imports.
Why this matters?
It’s great to see wind power take the lead over gas, becoming the UK's largest energy source in 2024 – providing 29% of the country's electricity. This marks the first time a renewable source has reached the top spot. This is an encouraging start for the UK’s new government, with plans to triple offshore capacity, to help cut emissions, and lower bills.
However, due to the unpredictable nature of wind generation, gas plants will be required as back-up over at least the shorter term. And despite the renewables surge, the UK still remains considerably short of its goal to be completely powered by clean-energy by 2030.
What's coming up in 2025?
Senior Investment Manager, Mollie Thornton, takes us through the standout moments and key achievements for 2024, and shares why we're feeling positive about 2025...
Read the full update in our 2024 ethical review and 2025 outlook.
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.
