The ESG arms race: How responsible investors are navigating defence

After a turbulent first half of the year following the release of the EU's sustainability Omnibus, Brussels is back in session and gearing up for a busy autumn of discussions and decisions on how to simplify a number of sustainable finance regulations. Formal negotiations between EU lawmakers are expected to kick off shortly on proposed changes to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), while a consultation on the European Sustainability Reporting Standards (ESRS) will close at the end of this month. It comes as the European Commission last month promised the US that it will make efforts to ensure its corporate sustainability reporting and due diligence rules do not impose “undue restrictions” on transatlantic trade. In this episode, senior reporter Fiona McNally – who has been on the ground in Brussels – talks to deputy editor Elza Holmstedt Pell about the biggest things to watch for as the future of EU sustainability and green rules are determined.

In this episode, we are joined by Amy O'Brien, global head of responsible investing at asset manager Nuveen. She joins us to discuss her new book, A Field Guide to Responsible Investing: Asset Management in the Age of Polycrises. Drawing from her three decades of experience in responsible investment, the book "takes readers on a journey of the evolution of responsible investing, how it works today, why it’s integral to investment considerations, and how we can finally get a grip on its efficacy." This episode covers data dilemmas, what critics get right – and wrong – about responsible investment, what might help bridge the divide, and Amy's thoughts on the future of the responsible investment industry.

Increasing geopolitical uncertainty and the USA's decreasing reliability as an ally has triggered a massive boost in global defence spending. As investment managers and asset owners look to capitalise on the new opportunities, this has led to a wave of fund launches and changes to exclusions policies across the market. In this episode, senior reporter Dominic Webb talks to deputy editor Elza Holmstedt Pell about the latest developments in the market, the regulatory backdrop and how ESG investors are changing their minds on defence. Recent RI defence-related coverage includes: French and passive investors make up most Article 9 defence investments UK government and business call on investors to review defence exclusions ESG exclusions not preventing European defence investments, say French investors Pressure grows on UK LGPS funds over Israel divestment Defence round-up: Sector ‘generally incompatible’ with use-of-proceeds bonds, says Principles chair

The past six months have been dominated by EU sustainable finance regulatory developments, following the bloc's push to simplify and roll back several of the rules issued under its 2019 Green Deal. On this episode, we are joined by Helena Viñes Fiestas, commissioner at Spanish regulator CNMV and former chair of the EU Platform on Sustainable Finance. Having worked in sustainable finance for more than a decade, she talks us through her thoughts on the ongoing sustainable finance regulatory developments and what outcomes she is hoping for amid efforts to simplify the rules.

The UK's fund labelling regime under the Sustainability Disclosure Requirements and the European Securities and Markets Authority's new guidelines on the use of ESG terms in fund names have have sparked a wave of renaming, mergers, closures and portfolio reshuffling. On this episode, we are joined by Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics. Bioy walks us through the most recent regulatory changes and what they mean for the EU and UK sustainable fund landscape. She also discusses the major challenges for asset managers looking to comply with the rules instead of renaming.

ESG shareholder proposals have come under increasing scrutiny over the past few years, with debates focusing around their alleged prescriptiveness and quality. Support for these proposals also fell sharply from the record levels reached in 2021 before stabilising last year at around 20 percent. Last year also saw ExxonMobil sue Dutch NGO Follow This and Arjuna Capital over a climate resolution. The lawsuit ended with the case being dismissed but Arjuna Capital had to promise never to file a resolution at the oil major again. And following the election of Donald Trump, filers predicted that the Securities and Exchange Commission (SEC) would be more likely to side with corporates, increasingly allowing them to block ESG proposals. So with all of this in mind, how are experts feeling about what we have seen so far this proxy season? How has the SEC's approach to ESG proposals shifted in 2025 – in particular, what has been the impact of Staff Legal Bulletin 14M (SLB14M)? And of the AGMs that have happened so far, what trends are emerging? To dig into all of this and more, RI's AGM reporter Gina Gambetta sat down with two experts in the space. First up, Lindsey Stewart, director of stewardship research and policy at Morningstar Sustainalytics. And for the second part of the episode, Gina spoke with Damion Rallis, co-founder of ESG research and analytics firm Free Float. 

It is now a matter of broad consensus that the world will overshoot its 1.5C temperature goal, but that does not mean there is nothing to be optimistic about, according to climate finance expert Jakob Thomä. He should know a thing or two about this topic. Thomä led the development of the first climate scenario analysis tool at 2 Degrees Investing Initiative and currently leads a think tank which makes predictions about future climate policy. He is also a professor in practice at SOAS and maintains a column here at RI. He joins the latest episode of The Responsible Investor Podcast to talk about AI, why continued demand for oil might not translate into emissions, and why modelling social factors is "super crazy difficult".

It’s been just over one month since the European Commission announced its much-anticipated sustainability Omnibus plans, which would heavily water down the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD) and EU Taxonomy. The EU executive wants the changes to be approved and implemented at a very quick pace, and much has already happened since the February announcement. In this episode, senior reporter Fiona McNally – who has been on the ground in Brussels – talks to deputy editor Elza Holmstedt Pell about recent developments and initial reactions to the proposals ahead of some of the big negotiations expected in April. Drawing on conversations with sources close to the process, the discussion will dig into the details of the CSRD corporate disclosure framework and how its data points could be “significantly reduced”, as well as what investors will miss out on and how they’ve responded to the Commission’s plans.

In recent years, corporates have increasingly been trying to work out how to approach nature reporting. How has the Taskforce on Nature-related Financial Disclosures (TNFD) aided firms in their efforts? And what are the initial insights from Corporate Sustainability Reporting Directive (CSRD) reports regarding how corporates are approaching ESRS E4 Biodiversity and ecosystems? Stephanie Hime, founder and managing director of sustainability-focused consultancy Little Blue Research, is well placed to explore these questions. She helped develop the Capitals Coalition’s natural capital protocol and sector guides, and is also the project lead for the International Organisation for Standardisation’s standard on natural capital accounting. In this episode, Hime sits down with RI’s nature reporter, Gina Gambetta, to explore how corporates have been evolving their approach to nature reporting, what resources are available to help those getting started, and what key developments they should be aware of.

Asset owners across the UK, Europe and US are sharpening their focus on asset manager stewardship, and an increasing regulatory focus on stewardship outcomes and transition-focused products is leading investors to think harder about how they can demonstrate that their own engagements are having an effect. Jennifer Walmsley, associate director for corporate engagement at the Institutional Investors Group on Climate Change (IIGCC), has more than two decades of experience in the area, having run the engagement team at EOS at Federated Hermes and headed up investor engagement for the Financial Reporting Council. She now oversees IIGCC's corporate engagements, including Climate Action 100+, the Net Zero Engagement Initiative and Nature Action 100. In this episode, Walmsley discusses how investors can measure the impact of their engagements, how to ensure engagement is a value add for company and investor alike, and how IIGCC is aiming to turn ineffective engagements at the collaborative initiatives it looks after into effective ones.