This week in ESG
Here’s what’s been making the headlines in the world of sustainability and responsible investing.
Key highlights for advisers
❎ Blackrock loses €14.5bn over ESG stewardship – Dutch pension giant PFZW sacked BlackRock after deciding it’s voting and engagement on sustainability issues didn’t meet their standards. A clear sign that asset owners are getting more selective about who manages their money.
📉 Carbon storage potential slashed by 90% – a new study in Nature suggests that the amount of carbon the world can safely store is only 10% of original estimates, casting doubt on our ability to limit warming through carbon capture and storage practices.
💰 Tesla proposes $1trn pay package for Musk – Telsa’s board is proposing a huge incentive package for CEO – and richest person in the world – Elon Musk, worth up to $1trn if certain ambitious milestones are reached over the next decade.
⏸️ Net Zero Banking Alliance hits pause – the UN-backed coalition of banks committed to Net Zero lending has paused activities while it restructures operations. This follows a complete exodus of US banks last year and several European banks more recently.
🍃 Ørsted fights back in offshore wind row – the Danish offshore wind giant, along with two US states, is suing the US government after Trump issued a politically motivated stop-work order on an almost-complete wind farm. Thousands of jobs are reportedly at risk.
Chart spotlight - hottest summer ever
Source: The Guardian; Met Office
Why this matters
The Met Office has confirmed that Summer 2025 was the UK’s hottest ever, with average temperatures (June-August mean) reaching 16.1C – beating the previous 2018 record. Four separate heatwaves pushed temperatures to unprecedented levels.
In a natural climate, a summer this hot could be expected once in every 340 years. With climate change, scientists now say it’s likely to happen once every five years.
This is a clear signal of the pace of climate change – and a call to action for businesses, policymakers, and investors to accelerate the transition to a more sustainable future.
Adviser key takeaway
Use this as a conversation starter with clients who care about sustainability. It highlights why climate risk matters to long-term portfolios – and why ESG considerations aren’t just a ‘nice-to-have’ but a vital part of risk management.
Join us at Goodstock
Goodstock is coming to Bristol! We're delighted to be sponsoring this brilliant conference for financial professionals determined to invest for good. We'll be hosting the night before drinks too. Book your place now and we'll see you there.
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.
