This week in ESG
Here’s what’s been making the headlines in the world of sustainability and responsible investing this fortnight, and what advisers should know:
Key highlights for advisers
🌊 UN ratifies landmark ocean life treaty - 60 countries have agreed to a UN treaty to protect life in the 60% of oceans that lie beyond national borders. This agreement creates marine protection areas, requires impact studies for potentially harmful activities, and encourages international collaboration on marine research. A significant step forward for ocean conservation.
⚡ US rolls back emissions reporting requirements – the Environmental Protection Agency (EPA) will no longer require high-emitting facilities to report on carbon output. While this reduces administrative burdens for companies, it also removes a key source of transparency for investors tracking environmental impact.
💥 EU issues €17.5bn in sustainability funding – the European Investment Bank (EIB) will fund energy efficiency and decarbonisation projects, supporting over 350,000 small and medium-sized businesses over the next three years. A major boost for Europe’s green transition and business resilience.
✅ Half of companies moving away from unsustainable suppliers – a Bain survey of CEOs reveals that 49% plan to drop suppliers that don’t meet set sustainability standards, over the next three years.
🔎 Texas investigates ESG proxy-voting adviser firms – Texas regulators have launched an investigation into Glass Lewis and ISS, proxy advisory firms who offer voting recommendations and support for asset managers. Authorities allege these firms misled investors into voting for pro-sustainability and Diversity, Equity and Inclusion (DEI) policies, highlighting ongoing political tensions around ESG.
Chart spotlight - corporate transition plans - all talk, no action
Source: Bloomberg: State of the Corporate Transition 2025
Why this matters
A new State of the Corporate Transition report from the Transition Pathway Institute (TPI) and the London School of Economics analysed climate disclosures from 2,000 public companies - representing $87trn in market value.
The findings reveal a striking disconnect: while most companies acknowledge climate change, recognise it as a material business risk or opportunity, and have a policy commitment to act, very few back this up with detailed transition plans.
- 40% disclose actions to meet their decarbonisation targets
- Only 5% quantify these strategies
- Just 0.5% align their capital expenditure plans with their decarbonisation goals
Despite the report seeing a gradual improvement in transition planning year-on-year, it also highlights the clear gaps between what’s needed and what’s actually being done in the corporate world. As the planet heats up, these companies will need to accelerate their actions or face disaster.
Adviser key takeaway
Sustainability isn’t just a buzzword - it’s increasingly influencing regulations, corporate strategies, and market opportunities. Staying informed on global ESG developments helps advisers guide clients towards investments that balance impact, compliance, and long-term performance.
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.
