This week in ESG
Greenwashing fines, linking ESG to executive pay packages and a defence industry debate.
Key highlights
🪙 DWS fined $27 million for greenwashing
- DWS, the asset management arm of Deutsche Bank, has been hit with a fine by German authorities after being found guilty of misleading investors about its investment sustainability credentials. The case marks one of the most high-profile greenwashing penalties to date, sending a strong message about the importance of transparency in sustainable investing.
🔗 ESG performance now linked to executive pay – at least in the EU
- Over 80% of European companies now consider ESG metrics in executive compensation packages, according to a new report by KPMG. In contrast, only 44% of US companies are doing the same.
🔃 SEC pulls back on climate risk reporting rules
- In a major U-turn, the Securities and Exchange Commission (SEC) has abandoned plans to force companies to report on climate risks. The decision follows political pressure from the new US administration and marks a setback for climate transparency efforts in the US capital markets.
🚫 Allianz softens stance on defence in ESG funds
- European investment giant Allianz has updated its exclusionary policies to no longer prohibit military equipment, services and nuclear weapons (inside the nuclear non-proliferation treaty) within some of its “lighter green” ESG products. The move reflects growing recognition of security as a component of sustainability – especially in light of ongoing geopolitical tensions.
🌊 New oceans-based targets launched by SBTN
- Environmental standard-setters the Science Based Targets Network (SBTN) has introduced the world’s first oceans-based targets. Starting with the seafood industry, these standards aim to help companies tackle issues such as habitat loss and marine biodiversity degradation.
Chart spotlight - climate goals remain resilient
Source: PWC, PWC analysis, CPD data (2024)
The chart above - from PWC’s 2025 State of Decarbonization report - shows how companies climate ambitions have changed over the last 12 months. This is based on a survey of 6,895 companies by CDP.
Why this matters
Despite growing negative ESG sentiment - especially in light of Trump’s return to the US presidency - it’s encouraging to see global companies stay resilient in their climate ambitions.
At such a pivotal moment for our planet, it’s reassuring to see 84% of companies rejecting this back-slide to stand-by their existing climate commitments. And it’s even more positive to see 37% of companies actually increasing their ambitions!
This resilience shows that company management view reducing their carbon emissions as being consistent with driving long-term shareholder value – not in opposition to it. It’s a powerful signal that ESG is not just surviving, but maturing.
Parmenion's Passive ESG solution turns three!
March 31st marked the third anniversary of Parmenion’s Passive ESG solution. In that time, the portfolio has proven its resilience - navigating rising inflation, geopolitical volatility, and a rapidly evolving sustainability landscape, all while delivering strong performance.
To celebrate, we're embracing the power of three by inviting ESG experts to share three wishes for the future of sustainable investing. It’s a moment to reflect on progress, and to look forward with purpose.
Read more in our article: A Strong Three-Year Start
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