Sustainable funds surge and EU tightens greenwashing rules in latest ESG roundup
The latest ESG+ newsletter reports that sustainable funds outperformed traditional peers in the first half of 2026 and reached record assets under management. It also highlights the TNFD's warning about the slow pace of nature-related reporting, the European Commission's proposed sustainability rating system for data centres, and the incoming EmpCo Directive that will restrict vague environmental claims from 27 September.
The Glass Lewis research on FTSE 350 pay reveals that roughly one in ten companies faced shareholder opposition exceeding 20 percent, with dissent clustering around large pay hikes and hybrid incentive structures. About 59 percent of remuneration policies proposed higher pay, and while peer benchmarking remained the dominant justification, references to US and global competition nearly doubled year over year. Eight firms adopted hybrid plans blending restricted and performance shares, yet most drew shareholder support below 80 percent, signalling persistent wariness toward such models.
Meanwhile, the broader ESG landscape shows sustainable funds setting new records for assets under management while outperforming conventional counterparts. The TNFD has cautioned that nature-related disclosure is advancing too slowly, and the European Commission's proposed data-centre sustainability ratings aim to address the sector's environmental footprint. The EmpCo Directive, effective 27 September, will further curb unsubstantiated environmental marketing language.
This roundup signals that ESG investing is maturing from a niche preference into a mainstream financial force, potentially reshaping how capital flows toward climate-aligned assets. Record sustainable fund performance could encourage more retail and institutional investors to shift allocations, while stricter greenwashing rules may force companies to substantiate environmental claims or face reputational and regulatory consequences. Data-centre sustainability ratings could influence infrastructure investment decisions. However, slow nature-related reporting adoption suggests voluntary frameworks alone may not drive meaningful change, possibly prompting regulators to consider mandatory disclosure requirements that would affect corporate compliance burdens across sectors.