Sustainability Snippets October 2025
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Article Type
Sustainability Soapbox
Topic
Opinion
Published
November 05, 2025
Read time
5 mins
Author
Aegon AM Responsible Investment Specialists
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Gone phishing… and they are landing whoppers
 

Over the past few months some high-profile companies have been paralysed by hacking activity. However, these are only the attacks that we’ve heard about and there are many more.  


In the UK, the National Cyber Security Centre has disclosed in their latest report an increase of 50% in "highly significant” cyberattacks – meaning that they had a serious impact on the economy, the mass population, essential services, or the government.


Another report by Sophos has highlighted a quintupling in the median size of ransom payments made over the past 12 months and a definite shift towards much higher ransom demands – e.g. 64% of all ransom payments reported were over £1million as opposed to 40% the year before.  

 

The interesting factor in the most recent cases is that attacks use one of the older tricks in the cyber book – phishing – or the use of emails to trick individuals into clicking on a malicious link and giving the hackers access. In many cases this is happening in the supply chains of these organisations, seen as weak links in the cybersecurity chain.  

 

As a result, the EU and UK have introduced legislation to obligate service providers to prioritise cybersecurity – and while the US has not produced regulation, it has made moves to strengthen safeguards.  

 

Cybersecurity is a topic we regularly discuss with companies given its potential to have a material financial impact on our investments.

 

The new e-cig on the block? Vaping – fueling a new wave of nicotine addiction

 

Tobacco companies have been trying to convince the world of their ESG credentials for many years. Since the early 2010s we’ve seen the rise of vaping, which was meant to be a method of helping cigarette smokers to quit but has instead been shown to be fueling a new generation of nicotine addicts. 

 

The World Health Organisation now estimates that 86 million adults and 15 million children use e-cigarettes, with children on average nine times more likely to vape than adults, in countries with available data.  The Office for National Statistics has just reported that vaping is now more popular than smoking for the first time in the UK.

 

E-cigarettes are often marketed as a “healthier” alternative to tobacco due to not producing tar or carbon monoxide. However, concerns are being raised around the colourful, fruit-flavoured vapes that are hooking kids on nicotine at young ages. Studies from the National Institute of Health and John Hopkins have suggested that e-cigarette use can damage lung function as well as blood vessels. 

 

Despite tobacco addiction estimates in adults falling since 2000, countries will need to address the health risks around both e-cigarettes and tobacco, as opposed to seeing one as a substitute for the other. 

 

Solar surge and policy setbacks 

 

According to analysis by Ember, renewables supplied the world with more power than coal in the first six months of 2025 – for the first time on record. Increased renewables generation, particularly solar, more than met increased electricity demand over the period, while overall fossil fuel generation reduced slightly.   

 

In the same week, the International Energy Agency (IEA) published its annual report on the renewables sector and its projected growth. This is one of the most comprehensive assessments yet of the impact of Trump’s policies, particularly from the One Big Beautiful Bill Act, on the energy transition. It estimates a doubling of renewables capacity globally between now and 2030. However, this is slightly down from previous estimates largely due to policy changes in the US, where new renewables capacity forecasts have been halved, and to a lesser extent China. The IEA expects total renewable capacity to reach approximately 9,500GW by 2030, which is below the ambitious target of 11,000GW set by world leaders at COP28.  

 

The surge in renewables in the first half of 2025 marked an important milestone. While the IEA’s revised forecasts reflect policy headwinds, particularly in the US, the overall trajectory remains positive. However, the pace of the transition is also important and needs to be accelerated to mitigate the worst potential future effects of climate change. 

 

Rare earth recycling: The next strategic investment frontier 

 

From December 2025, China’s new rare earth minerals export rules will cover all products containing even 0.1% Chinese rare earths. This follows a range of export restrictions purportedly for national security. As China tightens its grip on rare earth exports, the 'west' is accelerating its efforts to localise production and reduce dependence on Chinese supply. 

 

Mineral reserves in Europe, and the US, however, pale in comparison with countries like China and Russia. What these countries do have is a vast amount of these materials in their electronic waste. In this context recycling is emerging as a critical solution to secure supply chains, while also being far less environmentally damaging. 

 

Advanced technologies now exist meaning that recovery rates for some key elements, like Neodymium and Dysprosium from discarded electronics, are as high as 70% . Innovations in the sector are transforming e-waste into high-purity feedstock with drastically lower emissions and energy use. Critical factors such as policy support and corporate demand are also de-risking investments in rare earth mineral recycling: 

 

  • Policy support, including price floors, offtake agreements, and financing tools, are accelerating scale-up. The US is also proposing a $5 billion fund for diversifying domestic procurement of mineral supply. 
  • Companies like Apple and Microsoft are already integrating 100% recycled rare earths into certain products lines, while Apple’s $500 million deal with MP Materials signals growing corporate commitment. 

 

With China controlling 90% of processing and the US operating just one rare earth mine, recycling isn’t just an environmental win - it’s a strategic imperative. As ESG and geopolitical pressures converge, rare earth recycling is poised to become a cornerstone of resilient, sustainable industrial policy. 

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Aegon AM Responsible Investment Specialists
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