Monthly ESG Newsletter
May 2025

Key highlights:

ESG REGULATORY UPDATES:

• ESMA – Green Bond Regulation: ESMA has launched a public consultation on technical standards to implement the European Green Bond Regulation
• Directive 2025/794 – European Parliament: The EU Parliament has approved a directive postponing CSRD reporting and CSDDD due diligence obligations
• EFRAG – ESRS Simplification Mandate: EFRAG has submitted a plan to the Commission to simplify ESRS standards while keeping them effective and practical
• Shipping Decarbonisation Agreement: On April 2025, a global agreement was reached to achieve net-zero emissions in the maritime sector by 2050
• ESMA – Enforcement of Sustainability Information: ESMA has issued guidelines to ensure consistent and rigorous enforcement of sustainability disclosures, focusing on listed companies

INSIGHTFUL ESG RESEARCH

• EBA Report on pay and gender gap: Financial institutions still show significant gender disparities in compensation and senior roles
• Corporate climate investments (2019–2023): Large companies have increased investments in climate technologies sixfold, targeting solutions capable of reducing emissions by up to 90%
• Sustainable fund flows Q1 2025: ESG funds recorded global outflows of $8.6 billion, marking a reversal from the previous quarter due to geopolitical tensions and ESG backlash
• Article 8 and 9 – SFDR Q1 2025: Article 8 funds raised €52 billion, the highest level since 2021, driven primarily by demand for sustainable fixed-income products
• Institutional investors and climate transition: Investor focus on climate action is growing, especially in emerging markets

ESG NEWS

• New York pension funds: Threaten to withdraw mandates from those failing to present credible climate plans by June 2025
• Banco BPM: ESG data remains central to credit decisions, even after regulatory simplifications
• Banca MPS: Invests €450 million to support the green transition of Italian SMEs

ESG FUND FLOWS

• European sustainable fund flows in Q1 2025 recorded negative flows for the first time with $1.2 billion withdrawn
• In Q1 2025 Article 8 Funds See €52bn Inflows, the Highest Since 2021, as Sustainable Strategies Represent 48% of New EU Fund Launches and AuM Holds at €6 Trillion