This week in ESG
Sustainability Disclosure requirements (SDR) put on hold, Bank of England (BoE) tightens climate risk rules, and Canada elects pro-sustainability Prime Minister Mark Carney.
Key highlights
⏸️ SDR rules delayed for portfolio management
- The Financial Conduct Authority (FCA) has paused the roll-out of new SDR rules for Model Portfolio Services (MPS). The delay reflects a shift in regulatory priorities.
🏦 Royal Bank of Canada (RBC) drops $500bn sustainable finance target
- Following changes to Canada’s greenwashing regulations, RBC dropped its target to invest $500bn in sustainable finance, admitting it may not be able to adequately track progress towards this goal.
👣 Bank of England (BoE) requires greater climate-consideration
- The BoE is asking banks and insurers to step up their climate risk approach. Firms now must enhance scenario analysis and build more climate-related risk-metrics.
✅ Goldman Sachs shareholders overwhelmingly support DEI initiatives
- Despite two anti-DEI proposals seeking to end diversity-focused hiring practices and focus on policy risks, 98% of Goldman Sachs shareholders voted in favour of maintaining diversity, equity, and inclusion strategies.
🏆 Canada elects pro-sustainability Prime Minister
- Canada has elected Mark Carney as PM. The former Bank of England governor also served as head of the Glasgow Financial Alliance of Net Zero, and the United Nations Special Envoy on Climate Action and Finance – his win signals stronger political support for sustainable investing.
Chart spotlight - a decoupling of revenue from emissions

Source: MSCI Sustainability Institute, as at 31st March 2025
The charts tracks year-on-year changes (%) in listed company revenue compared to their carbon emissions from 2015 to 2023, split into developed and emerging markets.
Why this matters
To achieve global climate goals without stalling economic growth, one critical shift needs to happen: we must decouple corporate revenue growth from carbon emissions. In simple terms, companies must grow without growing their carbon footprint.
The good news from the charts is that this trend began over a decade ago in developed markets and is continuing to accelerate today. From 2015 to2023 listed company revenues rose 50% – while emissions fell nearly 25%. That’s a powerful indicator that sustainable growth is not just possible, but already underway.
In emerging markets, the picture is more complex. Emissions have continued to grow in the same upward direction as revenue, with revenues more than doubling over the same period, while emissions also increased by 65%. As these economies continue their rapid development seeking to catch up with developed markets, emissions are naturally higher – but there’s reason for optimism. Over the last few years, the gap between the two has grown wider – with emissions falling year-on-year since 2020.
This decoupling is a crucial step towards the planet meeting its climate goals and the trend must keep increasing going forward.
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