ESG: Who's winning the net zero race?

• The UK swelters through record June temperatures – the UK recorded its hottest June temperatures for three consecutive days, peaking at over 37.3°C. The extreme heat led to school closures and placed significant pressure on health services. It's another reminder that the physical impacts of climate change are becoming more frequent, with growing implications for economies, infrastructure and long-term investment risks.
      
• UK cracks down on supply-chain deforestation – the UK government plans to introduce mandatory due diligence rules for companies sourcing commodities like soy, palm oil, cocoa, and rubber. Businesses will need to make sure their supply chains aren’t linked to illegal deforestation. This brings UK expectations closer to the EU Deforestation Regulation (EUDR).
  
  
• Iberdrola launches mega green bond issuance – Spanish utility provider Iberdrola has successfully raised €1.5 billion through an oversubscribed green bond issuance. The proceeds will fund investment in electricity grid infrastructure and renewable energy investments, supporting the company’s energy transition strategy and sustainable financing goals.
  
  
• Court orders TotalEnergies to address customer emissions - a Paris court has ordered TotalEnergies to strengthen its climate transition strategy by addressing Scope 3 emissions. These are the emissions created when customers use the company’s fossil fuel products. The ruling reflects increasing legal and regulatory scrutiny of transition plans and reinforces expectations that businesses consider emissions across their entire value chain, not just their own operations.

Who's leading the race?

Why this matters

The chart shows that the UK has been one of the most successful major economies in reducing greenhouse gas emissions since the 1990s. At the same time, it has developed industries that support the transition to a lower-carbon economy, suggesting that decarbonisation and economic growth can go hand in hand.

However, growing political and financial pressure to soften climate and fossil fuel policies could make it harder for the UK to maintain its world-leading position on the path to net zero.

With so much political uncertainty continuing to surround Keir Starmer’s future as Prime Minister, it’s vital that any change in political leadership doesn’t derail progress. Whatever the outcome, remaining committed to the country’s decarbonisation goals and efforts will be key to supporting investment, providing policy certainty, and  reducing the worst impacts of climate change.

Our latest Climate-Related Financial Disclosures report explores how climate change could shape the future, and how we’re strengthening resilience across Parmenion.

Read the report

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