ESG+ Newsletter – 29 January 2026

Companies stay the course on ESG but discuss it less 

Amid political pushback against ESG in the US, according to a recent article from ESG Dive, companies remain steadfast in their sustainability commitments but are re-thinking their messaging. The article highlights declining use of terms like “ESG,” “green,” and “eco-friendly” in corporate messaging, with a Conference Board report cited in the article noting that only 25% of S&P 100 companies included the term “ESG” in their 2024 sustainability reports, down from 40% in 2023. The shift in terminology comes as companies adapt to the current American political environment, in which some firms have come under scrutiny from the administration. Despite changes to messaging, companies continue to set and expand the scope of net-zero targets. Net-zero targets covering companies’ entire value chains increased 14% in 2025 among the world’s 2,000 largest companies, according to a report cited by ESG Dive. The latest analysis appears to point to a re-working of communications around sustainability; however, there remains a conviction that sustainability – particularly climate – presents risks and opportunities for companies in terms of performance and creation of value and, as such, remains integrated in risk management frameworks and strategies. 

UK Regulator clarifies business responsibility for supply chain 

The UK’s Competition and Markets Authority (CMA) announced the release of new guidance aimed at helping businesses, including retailers, brands and manufacturers to understand supply chain responsibility in relation to environmental claims. The guidance clarifies the Green Claims Code (2021), which lays out consumer law-based principles for making eco-friendly claims, emphasising that businesses across the supply chain are required to take steps to ensure that any environmental claims that they make are accurate, backed by evidence. According to ESG Today, most significantly, the new guidance indicates that businesses may be liable for misleading environmental claims, even if they are only passing along information provided elsewhere in the value chain. The CMA also provided checklists for companies, including recommendations for retailers to seek evidence from suppliers before selling products, asking brands to provide confirmation of proof of claims, and for suppliers and manufacturers to provide retailers with the assurance needed to make accurate claims.  

EU authorities push for consistency in ESG bank reporting 

European authorities are pushing for stronger semantic integration across ESG reporting, to enhance clarity and comparability, according to ESG News reports. The Joint Bank Reporting Committee’s 2026 Work Programme recommends aligning definitions, terminology, and data structures across supervisory, statistical, and resolution frameworks. The aim is to reduce fragmented reporting obligations while improving the usefulness of ESG data for supervisors, investors, and policymakers, all of which supports more efficient capital allocation.  

Greater alignment at this stage could lower future compliance costs for banks and improve data quality and comparability across institutions. For supervisors, more coherent data strengthens risk assessment, resolution planning, and macroprudential analysis. The initiative also signals a broader shift in Europe, where ESG data is now treated as core regulatory infrastructure rather than a voluntary reporting exercise, aligning with the growing sophistication behind ESG and sustainability efforts over the past 12 months. 

Procrastination on climate and nature is eroding corporate value

Sixty per cent of the world’s 1,200 largest companies are deeply reliant on ecosystem services, putting value and performance at risk as those services are eroded, according to a recent article from Sustainable Views. This dependence on nature rarely features in reporting and capital allocation decisions but with impacts reverberating through supply chains, there is a growing need for systemic change. Companies across sectors are being impacted, with biodiversity loss affecting agricultural productivity, and frequent fires and floods impacting physical assets and logistics; the result is rising insurance costs, a material change in financial planning for companies. While climate and nature risks are getting harder to ignore, businesses’ responses have largely been limited to win-wins or low hanging fruit that with immediate payback; however, such tactics fail to capture the long-term risks for companies of worsening climate change and degradation of nature. The Council on Sustainability Transformation’s recent white paper,  Aligning climate, nature and market, cited in the article, details three priority action areas for business leaders:  

• Quantify what matters
• Plan interventions to tackle risks
• Collaborate with policy makers, investors, NGOs and academia 

Given the range of companies and sectors impacted, early movers can secure competitive advantage, while genuine collaboration across value chains will be needed to arrest the most deleterious impacts.

Sustainability a lesser factor in the rise of second-hand fashion 

Extending clothes’ lifespan and reducing resource use deliver clear environmental benefits. Yet, while sustainability is often associated with the growth of second-hand fashion, it is not its main driver. According to the Irish Examiner, the sector’s expansion is fuelled primarily by “value, access to unique items, technology, and cultural shifts.” 

Affordability is the main reason people buy second-hand clothing. As economic pressure tightens household budgets, consumers increasingly turn to resale to maintain style while spending less. The second factor is “access.” Resale platforms offer luxury, rare or discontinued items that would otherwise be out of reach, with technology enabling significant growth. Digital marketplaces have changed the buying experience, making it easy and engaging, transforming resale “from messy racks to curated feeds”. Lastly, cultural change is another key factor. Resale platforms function like social spaces enabling discovery, storytelling and personal curation. 

Certain brands may adopt resale less for sustainability benefits than to capture value. Keeping customers in-brand, building loyalty and creating new revenue streams makes resale strategically attractive. Regardless, the steps have a net positive for sustainability, demonstrating alignment between evolving consumer demand and positive outcomes across social, environmental and economic factors.  

ICYMI

• European electric vehicle sales overtook petrol for first time in December, the Financial Times reports.  
• For the first time ever, wind and solar generated more electricity than fossil fuels in the EU in 2025, according to data from energy think-tank Ember. 
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