Sustainability update November 2025

COP30 – “divisive” summit delivers mixed outcomes and signals rather than shifts

Billed as the summit of “adaptation, implementation and truth”, COP30 in Belém, Brazil, was supposed to showcase increased international cooperation. However, it fell short of delivering binding commitments to phase out fossil fuels or a clear roadmap on tackling deforestation roadmap, despite strong expectations and its symbolic setting in the Amazon. 

However, despite geopolitical challenges and the refusal of the US to engage, COP30 was still able to deliver some positive outcomes and showcased the ability of smaller coalitions to form - dubbed “minilateralism” – and drive progress, even if unanimous decisions could not be reached. 

COPs may not deliver palpable shifts, but they do provide important signals about future policy direction, transition risk and broader system change. Overall, COP30 delivered nudges rather than breakthroughs but reinforced the need for the structural shift toward deeper decarbonisation and more resilient systems. 

You can read more about our reflections on COP30 here.

UN Environment Programme (UNEP) update indicates world heading towards a more intensified climate crisis

The 16th edition of UNEP’s Emissions Gap Report (pointedly titled “Off Target”) observed that while the decade since the Paris Agreement spurred global climate action, ambition and implementation was still falling short of what’s required to limit the escalation of climate risks. Of the 195 parties committed to the aims and objectives of the Paris Agreement, only 60 (representing around 63% of global greenhouse gas emissions) filed or announced new Nationally Determined Contributions (NDCs) detailing mitigation targets for 2035 by the September deadline. And just 13 parties covering less than 1% of global emissions included revised 2030 targets. 

Even if all current NDCs are fully implemented, the report estimates that warming projections for the century will fall somewhere in the 2.3–2.5°C range, far above the ambitions stated in the Paris Agreement. Based on the current policy environment, this projection could rise to 2.8°C. Global emissions also increased by 2.3% in 2024, reaching a record 57.7 GtCO2e. To reach a pathway compatible with a 2°C warming limit, the report estimated that global emissions would have to fall by at least 35% by 2035, however full implementation of NDCs is only expected to reduce emissions by around 15% in that time.

Overshoot of the Paris Agreement’s 1.5°C warming target is now almost inevitable but this should not stall action even as attention may turn to adaptation. Every fraction of a degree avoided reduces an escalation of climate impacts and limits the risks of irreversible tipping points. The report noted the surge in renewable energy generation through 2025 and that mitigation potential in wind, solar and forestry remained sufficient to bridge the 2°C gap by 2035. The IEA’s World Energy Outlook 2025 report indicated that renewables remained the fastest-growing contributor to the global energy system, driven largely by solar power, wind and the resurgence of nuclear power. Despite the increase in political support for coal, oil and gas in some quarters, the IEA continues to predict a peak for global fossil fuel use before 2030.

SFDR 2.0 – European Commission proposes major overhaul of EU Sustainable Finance Disclosure Regulation

The Commission’s revision of the SFDR is a radical departure from the original regulatory regime, moving from a disclosure-based approach to one that establishes distinct investment categories with minimum sustainability standards that financial products claiming to be sustainable must meet. A comprehensive review indicated that the current SFDR framework resulted in complex and lengthy disclosures which made it difficult for investors to understand or compare the sustainability characteristics of financial products. 

SFDR 2.0 proposes three new fund and product categories: Transition, ESG Basics, and Sustainable. Each category comes with binding eligibility criteria, including a minimum 70% asset alignment with the relevant ESG strategy, plus mandatory exclusions. Disclosure templates will be streamlined and services such as portfolio management and investment advice will no longer fall under SFDR’s disclosure remit. The obligation to publish SFDR disclosures on dedicated product websites will also be removed.

Through SFDR 2.0, the Commission aims to simplify and clarify ESG disclosures in line with its Omnibus objectives, reduce company compliance burdens and costs, better align the SFDR with other EU sustainability frameworks, and tighten eligibility concerning sustainability claims. Should the Commission’s proposals be adopted unchallenged, the new regime is expected to become effective in 2028.

EU compromise waters down 2040 climate target

Seeking to secure a deal ahead of COP30, European climate ministers approved a compromise to the region’s 2040 emissions reduction target after opposition from member states concerned about the potential effects of legislation on European competitiveness. Other objections were raised around the affordability of reduction measures alongside high energy costs and industrial and national defence priorities.

The original target proposed a 90% cut in regional emissions by 2040 with a maximum of 3% in carbon credit offsets. After member states pushed for additional carbon credit flexibility, ministers settled on 5% with the option to allow a further 5% in the future. In a further effort to win over sceptical members, the EU agreed to postpone the launch of its ETS2 carbon market from 2027 to 2028. Despite the apparent dilution of the EU’s climate ambitions, ministers insisted that target revisions would help the continent to achieve its goals whilst preserving competitiveness, social balance and security.

Rathbones’ Responsible Investment Summit considers the systemic risks threatening global prosperity

Practitioners and participants in the sustainable investment community convened at Rathbones’ London offices to discuss the trends and strategies shaping the future of responsible investing and explore ways to navigate an increasingly complex landscape of systemic and geopolitical risks. Breakout sessions focused on integrating informed systemic risk analysis into investment decisions and how charities can align investments with their values and missions. Later panel discussions considered core objectives for three key systemic pressures: converting climate science into climate resilience, bridging the ambition gap between global biodiversity goals and real-world action, and integrating universal and indivisible human rights into all investment decisions.

For more insights and detailed coverage, visit our dedicated resources on the Summit.