ESG+ Newsletter – 18 June 2026

Solar generates more energy than coal in US for the first time

FTI Research: voting on executive pay in the UK and Ireland

FTI Consulting has published a new analysis of executive remuneration voting trends across FTSE 350 and ISEQ 20 companies. The 2026 AGM season saw a decline in instances of significant shareholder opposition on both remuneration reports and remuneration policies. Strong market performance in 2025 and broadly unchanged guidance from the Investment Association (IA), Institutional Shareholder Services (ISS), and Glass Lewis provided a supportive backdrop. 

The aggregate picture, however, masks some persistent pressure points. Nearly one in ten companies still faced significant dissent on their remuneration policy, and restricted share schemes continue to generate opposition even where boards have applied the discount generally expected by investors. Where pay concerns have persisted across consecutive years, remuneration committee chairs have faced votes against their re-election of up to 37%. 

These findings carry practical implications for boards. With geopolitical uncertainty complicating incentive design, companies considering changes to their pay structures should engage proactively with shareholders and disclose remuneration decisions with clarity to mitigate the risk of dissent in 2027. 

Read the full analysis here. 

Impactful corporate storytelling requires an honest sustainability narrative

Reuters reports that brands are facing a credibility crisis in sustainability communications, with nearly one in four employees now doubting their employer’s environmental claims, according to a recent study from UK health and safety firm Astutis. Scepticism has been compounded by high-profile prosecutions, with more than a dozen major companies, found guilty of greenwashing last year.  

Communications specialist Zoe Arden traces the problem to corporate sustainability storytelling that she claims is overly controlled, too polished, and too dominated by the growth narrative to feel trustworthy. In her recent book Story-Centred Leadership, Arden argues that brands need to bring in multiple voices and co-create their stories, rather than broadcasting from an “ego chamber”. She also contents that brands must be willing to show vulnerability: admitting uncertainty and obstacles rather than projecting false confidence. Patagonia’s impact report, which opens with the line “Nothing we do is sustainable” is spotlighted as an example of this “perfect at being imperfect” approach, with the argument that acknowledging imperfection actually strengthens credibility and gives brands the freedom to experiment and innovate.

ISO releases new Net Zero standard to aid in transition planning

The International Organization for Standardization (ISO) is set to publish its first-ever draft net zero standard, ISO 14060. In development for nearly two years, the standard requires companies seeking certification to produce credible transition plans with long-term and interim emissions targets, monitoring protocols, third-party verification, and clear strategies for meeting those targets. It has been designed as a “one-stop shop” for organisational transition planning, aimed at strengthening the robustness of transition plans.  

ISO’s publication follows the Science Based Targets initiative’s second version of its corporate net zero standard announced last week. While the SBTi has historically set percentage limits for different types of emissions, the ISO standard provides guidance on how to develop such a target. It is intended to complement the Science Based Targets initiative’s corporate net zero standard and was developed in partnership with that organisation. 

EU Council agrees on CBAM expansion

The Council of the European Union has agreed its position on the prospect of strengthening and expanding the EU’s Carbon Border Adjustment Mechanism (CBAM), paving the way for negotiations with the European Parliament. As reported by ESG News , reforms to CBAM would extend the mechanism’s purview beyond primary materials such as steel and aluminium to cover a range of downstream and finished products that contain significant quantities of carbon-intensive inputs. These changes reflect growing concern that existing rules do not fully address the risk of “carbon leakage”, with fears among lawmakers that final production of carbon-heavy products is being increasingly shifted outside of the EU to jurisdictions with less stringent climate regulation. 

The Council hopes this reform will prevent the circumvention of emissions levies by companies as they import downstream goods rather than raw materials, while also protecting European manufacturing. Other measures include bringing pre-consumer metal scrap into CBAM’s scope and establishing enhanced enforcement powers for the European Commission, both also aimed at hampering any potential evasion of climate regulations. Additionally, the Council supported more clearly defined conditions for any temporary suspension of CBAM, following on from proposals by the European Commission. The Council insists that any such exemption should be based on clear and objective criteria as it aims to provide greater regulatory certainty for the market. Once the European Parliament adopts its own position, negotiations will be set to begin. If these reforms are adopted, the expanded CBAM will take effect from 2028 and could significantly increase the quantity of EU imports subject to carbon pricing.

EU carbon removal methodologies under fire as NGO coalition pushes for reform

Environmental NGOs have asked the European Commission to review the carbon removal rules currently in place under the EU’s Carbon Removal and Carbon Farmer Regulation, ESG News reports. The coalition of environmental NGOs is specifically requesting that the methodologies for Bio-CCS and biochar be reviewed, as the outlined methodologies do not permanently remove carbon dioxide from the atmosphere. The coalition argues that the current approaches not only diverge from scientific and international norms, but also overlook potential negative impacts on agricultural land, as certain activities considered permissible under the outlined methodologies could result in additional pressure being placed on ecosystems. The European Commission has up to 22 weeks to respond to the coalition and must provide an explanation if it rejects the concerns raised.

ICYMI

• The SBTi has released Corporate Net-Zero Standard Version 2.0, a new framework for assessing corporate decarbonisation commitments and supporting science-based climate target setting, according to ESG Today.
• The EU Commission has launched a public consultation on CSDDD implementation guidelines, designed for large EU and non-EU companies to address human rights and environmental impacts across their operations and supply chains.
• CDP is splitting into two parts: a commercial arm backed by Permira and a charitable CDP Foundation. According to ESG Today, the commercial side will scale environmental data and disclosure services, while the Foundation will focus on scientific standards and improving disclosure frameworks.