ESG highlights for financial advisers
- France sets out roadmap to phase out fossil fuels – the country has published a roadmap to reach its decarbonisation goals, following global recommendations from COP30 in November 2025. It includes a focus on electrification and analysis on the transition’s impact on energy sovereignty, plus setting decarbonisation targets for sectors like transport and buildings. France aims to end the use of coal by 2030, oil by 20245 and natural gas by 2050.
- New reporting regime to be trialled for ESG ratings providers – the FCA is set to launch a voluntary reporting pilot for ESG ratings providers, giving firms input on the final rules - set to finalised in Q4, and rolled out by 2028, with the ultimate goal of increasing transparency in the sector.
- New York pension funds show Blackrock and Fidelity are off track on climate goals – a $300bn coalition of NYC pensions have stated that both asset managers are not suitably aligned with the Net Zero by 2040 target. This could mean fund houses may need to re-bid for their existing contracts, or have their mandates terminated entirely.
- Shareholders stop BP watering down climate disclosures – at its Annual General Meeting, BP tried to cut-down on disclosures, meaning it wouldn’t report on operational emission management or show how its strategy is aligned to the Paris Agreement. After a considerate campaign, the motion was rejected, with over 50% of shareholders voting against.
Spotlight on: companies' climate ambitions
Percent of companies' year over year growth in ambitions.
Source: PwC, CDP, 2024-2025. Individual values may not sum to the total due to rounding.
Why this matters
While 2025 was a politically turbulent year for sustainability, a new global study from PwC found that 82% of companies kept their climate commitments in place or actually increased their timelines to achieve them. While this is a step down from 2024, it still shows an incredibly positive effort from the majority of the 3,000+ businesses surveyed.
PwC suggests the motivation for companies continuing their decarbonisation efforts comes from a mix of:
- Persistent client pressure
- A better understanding of transition risks
- A strengthening economic and business case – including cost savings from greater energy-efficiency and optimisation.
The study also shows that where climate targets are lowered, it’s often less about backtracking and more about recalibration based on better data, leading to more realistic goals.
Sustainable investing
Sustainable investing is more and more becoming a core part of portfolio construction and client conversations, moving beyond values alone into practical financial planning.
Our latest article will help you navigate those discussions - covering common client questions, how to approach trade-offs, and where sustainable strategies can sit within broader financial goals.
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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.
