ESG+ Newsletter – 15 January 2026

FTI’s COP30 Debrief 

The 30th United Nations Climate Conference, held in Belém, Brazil, in November 2025, marked a fundamental shift in the global climate discussion. For the first time, negotiations weren’t just about emissions targets – they were about supply chain resilience, market access and financial architecture.  

FTI Consulting’s COP30 debrief  identifies  climate and nature as the essential drivers of economic development, flipping the focus from formal protocols to economic imperatives. COP30 embodied the increasingly fragmented landscape of global climate politics, as siloed factions advanced narrow agendas. The conference revealed deep ideological and strategic divides, most notably in the organised pushback against the European Union’s carbon border adjustment mechanism by China, India and Saudi Arabia, who criticised it as economically punitive and trade restrictive. Climate, political, and financial risks can no longer be managed separately. The next phase will reward companies that move early and integrate climate into core strategy, ultimately  defining  the next decade of competitiveness. 

US pulls out of more international sustainability organisations

The US is set to withdraw from several international climate, energy, and sustainable development organisations. According to  ESG Today, President Donald Trump’s administration described the organisations as “detached from national interests,” in a statement announcing their plans to exit the organisations. Among the organisations that the US is withdrawing from is the United Nations Framework Convention on Climate Change (UNFCCC), a UN climate treaty that gave rise to major international agreements such as the 1997 Kyoto Protocol and the 2015 Paris Agreement. Under President Trump, the US has twice pulled out of the Paris Agreement, most recently at the beginning of his second term in January 2025. The US’s withdrawal from the UNFCC and other international climate bodies is the latest in a series of moves by President Trump’s second administration to hamper efforts to stem climate change. Despite this, the American private sector – and indeed major businesses globally – remains committed to making progress on climate change and the energy transition, driven by state-level climate disclosure regulations and business-to-business pressures. 

Human rights risks underpin reputational risks 

Almost all major companies are complicit and exposed to the regulatory and reputational risks linked to the existence of forced labour in their supply chains reports Sustainable Views. The Modern Slavery Global Benchmark 2025, published by UK-based responsible investor fund manager, CCLA, on Tuesday found that instances of modern slavery continue to rise. The disclosures of over 100 globally listed companies were reviewed as part of the study, with most found to only have a ‘developing’ approach to managing human rights risks, meaning they have a policy in place with little evidence of robust due diligence. Only five were found to be’ leading’ with evidence of risk assessments and of remedying human rights risks within their supply chains.

A moral and economic risk in addition to a reputational and regulatory one, human rights seem to be bucking the trend of the anti-ESG movement. Even the US administration has taken a stance on forced labour framed as a means of protecting American workers and US economic interest. With calls to adopt a stronger UK Modern Slavery Act (2015) and the Corporate Sustainability Due Diligence Directive regarded as very demanding for those in scope, the regulatory demands and other risks are increasing. Moreover, failure to protect individuals and entities in the supply chain can have a disastrous effect on a company’s standing and reputation. 

ESRS amendments will negatively impact disclosure quality, say investors 

The majority of investors and financial institutions believe that the recently proposed simplified European Sustainability Reporting Standards (ESRS) will negatively impact the quality of companies’ sustainability disclosures, ESG Today reports. These findings come from a recently released report by the European Financial Reporting Advisory Group (EFRAG), the preparer of the ESRS. The study also raises concerns that the amended ESRS will lead to a loss of crucial climate and environmental data, resulting in reduced comparability, leading to an estimated 60-70% reduction in data points per company disclosure. The study, Cost-Benefit Analysis on the Draft Amended European Sustainability Reporting Standards, follows the release in early December by EFRAG of its finalised proposed revision of the ESRS, aimed at simplifying reporting requirements for companies in the scope of the CSRD. While general investor sentiment on the changes is mostly negative, the report finds that companies were far more positive, citing cost savings and increased simplicity as the main drivers. According to the report, the cost savings to in-scope companies from the revised ESRS are expected to be substantial, with an estimated savings of €3.7 billion from 2027 to 2031. 

France points to nuclear as an ESG investment 

As reported by IPE, France’s institutional investor association, Af2i, has released a major report assessing how civil nuclear energy can be integrated into ESG investment strategies. The work is significant because France is recommitting to nuclear power, planning new reactors and life extension of existing plants, prompting investors to reassess how the technology fits within sustainable finance, supporting capital flows and investment. Af2i argues that nuclear energy is heavily regulated and offers strong risk visibility, yet ESG assessments remain difficult due to inconsistent standards, data gaps, and diverging national approaches. The report calls for coordinated updates to ESG frameworks and closer collaboration among investors, regulators, scientists, and industry to create clearer evaluation tools. 

France’s leadership and the EU’s evolving taxonomy could reshape international perceptions of nuclear energy’s role in sustainability. If nuclear is more widely recognised as a low carbon, transition critical technology, there may be a knock-on effect in terms of global investment flows and energy transition strategies, particularly as energy costs continue to impact cost of living, business costs and political debates. 

Purpose and performance can go hand in hand

This week, Reuters featured a commentary by Chris Turner, CEO UK at the B Lab, the nonprofit behind the B Corp certification, which promotes a greater focus on social and environmental performance. Turner argues that purpose-led companies can outperform conventional peers, challenging the view that social and environmental commitments dilute shareholder returns.

To mark its 10th anniversary, B Lab UK reviewed the performance of its certified companies. As of November, there were more than 2,700 B Corps operating in the UK. According to the analysis, these businesses have grown faster than the wider SME population, with UK B Corps recording an average 20% increase in turnover in 2025, compared with 3% for SMEs overall. They were also found to be more resilient, with 93% remaining active since before the COVID-19 pandemic, versus 84% of UK businesses more broadly. B Corps have also attracted higher-than-average investment, raising a median £1.5 million in growth funding over the past decade. 

This outperformance was attributed to disciplined leadership, strong workplace cultures and a consistent focus on strategic goals. Building on its success, the B Lab plans to introduce more demanding certification standards later this year and supports legal reforms under the Better Business Act to “empower company directors to align social and environmental impact with shareholder returns.” 

ICYMI

• Sustainalytics plans to exit its second-party opinion business over concerns about its ability to scale the unit, Responsible Investor reveals.
• EcoVadis and Amazon have launched a new feature on Amazon Business that lets sellers show their EcoVadis medals or badges on their profiles, making it easier for buyers to find sustainable suppliers.