ESG highlights for financial advisers
- US climate reporting rules face potential rollback – the Securities and Exchange Commission (SEC) has indicated it plans to rescind its 2024 climate disclosure requirements, adding further uncertainty around the future of ESG regulation and mandatory corporate climate reporting. Any changes are likely to take time, meaning companies must continue to comply with existing climate-risk disclosure requirements for now.
- Germany commits €5bn to industrial decarbonisation – Germany is deploying up to €5bn through its Contracts for Difference scheme to help energy-intensive industries reduce emissions. The funding is designed to bridge the cost gap between conventional and low-carbon production methods, encouraging greater investment in cleaner technologies.
- India considers $1bn boost for electric commercial vehicles – India is considering a $1bn incentive programme to accelerate private-sector adoption of electric buses and trucks. The proposal targets the country’s largely diesel-dependent commercial fleet, with the aim of reducing fuel imports, strengthening energy security and cutting urban emissions.
- New Zealand to ban climate lawsuits – New Zealand plans to amend its climate laws to block civil lawsuits against companies for emissions-related damage. The government says the change is intended to provide greater regulatory certainty for businesses, shifting climate accountability away from the courts and back into formal policy frameworks.
How will your allocation to sustainable investments change over the next 12 months?
Source: Morgan Stanley, Sustainable Signals 2026
Why this matters
A new Morgan Stanley Sustainable Signals report, surveying 2,250 individual investors globally, highlights growing momentum behind sustainable investing. 64% of respondents plan to increase their allocation over the next year, driven largely by expectations of stronger returns and improved understanding of the investment-style. By contrast, only 5% plan to reduce exposure, citing weaker recent performance and concerns around data quality and reporting standards.
The report also points to rising overall engagement and higher allocations compared with last year, signalling sustained interest in the space. This is a really positive indicator for the industry and shows a real desire from retail investors to keep supporting sustainability in ever higher degrees.
Ambition into action
At Parmenion, this same theme of progress and accountability runs through our 2025 Annual Report, where we set our Net Zero journey (page 28) in more detail.
Through our partnership with carbon accounting provider Normative, we refined how we measure and reduce emissions in 2025, building on progress made in 2024 and strengthening the foundations for 2026.
Read the full report to explore how ambition is being translated into action across our business.
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.
