The 2024 proxy season revealed significant shifts in sustainability-focused shareholder proposals, particularly on climate issues. While climate-related resolutions hit record numbers, support has stabilised after two years of decline. "Say on Climate" resolutions lost momentum, with investors favouring targeted engagement and emphasising board accountability. A notable trend is the divergence between European and US asset managers. European firms generally show stronger support for climate resolutions, while US counterparts have become more cautious. This split reflects broader regional differences in climate action within finance.

The European Securities and Markets Authority has issued guidelines on using ESG and sustainability-related terms in investment fund names to prevent misleading investors. These guidelines aim to enhance transparency and protect investors from potential greenwashing in the sustainable finance market.

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Financial Conduct Authority's (FCA) new regulations in the UK to promote sustainable investing and prevent greenwashing. The FCA is introducing investment labels for funds with sustainability objectives, requiring firms to make clear and truthful claims about the sustainability of their products, and implementing disclosure requirements for asset managers. These regulations aim to improve transparency in the sustainable investment market and protect investors from misleading claims.

ESG integration in Japanese asset management has gained significant momentum in recent years. A growing number of Japanese asset managers are adopting ESG principles. Major institutions like the Government Pension Investment Fund (GPIF) lead the way by emphasising ESG integration throughout their investment processes.

Climate Action 100+ (CA100+), a prominent investor-led initiative addressing climate change, has experienced several high-profile member departures in recent months. These exits, driven by factors such as the development of internal engagement capabilities and disagreements with the initiative's new Phase 2 strategy, have occurred amidst increased political scrutiny in the United States. However, CA100+ maintains that hundreds of investors remain committed to its goals, emphasising that managing climate-related risk is essential for financial stability.

In this episode, we dive into the Reserve Bank of India's groundbreaking new framework for climate reporting. Join us as we explore:

Discover how this bold move by the RBI could reshape the financial landscape and accelerate sustainable development in one of the world's fastest-growing economies.