September 2025 Newsletter

6 Oct

Check out our selection of top sustainability stories from September 2025.

2026 PRI Reporting – New And Mandatory For All

The Principles for Responsible Investment (PRI) will introduce a new mandatory reporting framework in 2026 for all signatories. The updated system will include around 40 assessed indicators, replacing asset-class-specific modules and eliminating the “Partial Reporting” option available in previous years. Larger multi-asset managers may see fewer indicators, while smaller firms will see minimal change. The framework emphasises responsible investment policies, governance, stewardship, and engagement, with increased attention to human rights and nature. Additionally, PRI will launch its voluntary “Pathways” tool, enabling signatories to customize their progression in responsible investment practices. Final details are expected in November 2025. The proposed changes are potentially significant so please read our full article here and get in touch if you’d like help with your reporting.

Danesmead Advisory Update

Danesmead Advisory have moved! You can now find us at 33 Foley Street, London. We’re also growing. Last month Alex Miller joined as Head of Advisory and this month Chessie Lindsay-Brown joins as a Consultant. Get in touch if you’d like to meet up or hear more about our upcoming plans.

More Pensions Funds Move Towards Sustainable Investments

Dutch pension fund PFZW has withdrawn €34 billion in mandates from BlackRock, Legal & General, and AQR Capital, citing a strategy shift to prioritise sustainability alongside returns and risk. PFZW is seeking to support sustainable transitions like energy and food systems, moving from passive index tracking to active management with firms such as Robeco and Schroders. This trend reflects growing tensions between pension funds and asset managers as U.S. firms scale back ESG commitments amid political backlash, while their European counterparts forge ahead. Other recent examples include The UK People’s Pension which pulled £28 billion from State Street over ESG concerns, while Denmark’s AkademikerPension ended a mandate for similar reasons.

Greenwashing Trends Vary But Scrutiny Remains Strong

Greenwashing enforcement is accelerating globally, with regulators increasingly using AI to proactively scan online claims, meaning companies can be targeted even without customer complaints, according to a report by law firm Ropes & Gray. The report also found that regulatory trends vary: the UK for example, has expanded enforcement powers, while EU initiatives like the Green Claims Directive have stalled, although scrutiny remains high. Meanwhile in the U.S., federal action is slow, but states such as California and New York are increasing oversight. Greenwashing litigation is also evolving and companies may now face liability for misleading statements and omissions, as well as technically accurate but unsupported claims or inadequate disclosure. Misuse of AI in marketing poses additional risks if it generates unverified claims. Companies and financial firms must ensure environmental statements are factually accurate, substantiated, and not misleading.

Responsible Investment Forum: Europe (PEI RIF)

The 16th annual Responsible Investment Forum: Europe is returning to London on 18-19 November 2025. Are you attending? Danesmead Advisory will be there, coordinating a dinner for clients attending - let us know if you'd like to join.

ISO Merge With GHG Protocol

The International Organization for Standardization (ISO) and the Greenhouse Gas (GHG) Protocol have announced a landmark partnership to harmonize their greenhouse gas accounting standards. This collaboration will merge ISO’s 1406X series with GHG Protocol’s widely used Corporate, Scope 2, and Scope 3 standards into a unified, co-branded framework. The goal is to create a common global language for emissions measurement and reporting, reducing complexity for companies, investors, and regulators while improving consistency and credibility. The partnership will also develop a joint product carbon footprint standard to meet growing demand for value chain transparency, supporting global decarbonization and regulatory alignment.

EU Commission To Propose SFDR Product Categories

The European Commission is set to propose three product categories including “sustainable,” “transition,” and “ESG collection” as part of its revision of the Sustainable Finance Disclosure Regulation (SFDR). This aims to address greenwashing and create a clearer labelling regime for sustainable investments. The proposal will be tabled after the EU Parliament agrees on the sustainability Omnibus. The Commission is still finalizing technical details, and an “impact” category is unlikely due to definitional challenges. Implementation could start from 2028, with the new framework intended to improve transparency and align with investor sustainability preferences.

If you’d like to know more or discuss any of these topics please get in touch.