Sustainability Snippets September 2025
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Article Type
Sustainability Soapbox
Topic
Responsible Investing
Published
September 24, 2025
Read time
7 mins
Author
Aegon AM Responsible Investment Specialists
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Net zero or not yet? Tracking corporate climate targets

 

The latest SBTi Trend Tracker shows that nearly 11,000 firms worldwide now have science-based targets in place or pledged, covering about 41% of global market value.


In the 18 months to June 2025, the count of businesses with validated near-term targets almost doubled (+97%), while those locking in both near-term and net-zero goals jumped 227%. Momentum is translating into deeper ambition too: the share of companies pairing near-term plans with net-zero milestones climbed from 17% at end-2023 to 38% by mid-2025.


Asia is the stand-out growth engine. Validated targets in the region surged 134%, with China alone posting a 228% leap. By sector, Industrials lead the pack – roughly one-third of all companies setting science-based pathways – followed by Consumer Discretionary and Materials. The knock-on effect is spreading through supply chains as large Asian manufacturers ask their suppliers to adopt similar standards, reflecting a growing regional commitment to decarbonisation across supply chains.


A simple takeaway: science-based targets are quickly becoming the baseline for doing business rather than a “nice-to-have”. The pace seen in 2024-25 suggests that climate ambition is moving from boardroom talk to mainstream corporate action, and it’s gathering speed across regions and industries alike.

 

PFAStrophe - the billion-dollar chemical hangover  

 

The tide of lawsuits relating to PFAS (often called forever chemicals) is growing into one of the largest and most financially material environmental litigations in history. Following 3M's 2024 blockbuster $10.3 billion (spread over 10 years) settlement with US public water suppliers, the biggest financial hit of this summer features the ensemble cast of Dupont, Chemours, and Corteva who will pay a combined $875 million.


These cases demonstrate that US authorities are increasingly willing to hold companies directly liable for decades of PFAS contamination. While chemical majors face the most immediate risks, firms in other sectors with PFAS in their manufacturing process (textiles, packaging, and semis) may also be caught in the crosshairs of regulators as they expand disclosure and accountability measures, see the EU's REACH programme, for example.


Until recently PFAS was considered an emerging or nascent risk, however the size of liabilities, the potential financial implications from the thousands of additional claims being filed, and the threat of incoming legislation are accelerating the seriousness with which investors and companies should be considering PFAS exposure.

 

Always looks on the bright side of life… 

 

Life has been somewhat challenging for the renewable power sector of late – but a recent piece of research in Bloomberg has shown the huge potential that Africa has for implementation of solar power. It has around 40% of global solar power potential, but accounts for only 1% of installed capacity. To put that into context – the whole of Africa has only got 20GW capacity, while Bavaria, in Germany, has 29GW making it a hugely untapped market. There are many reasons why this is the case: low income, poor infrastructure and currency risk among other things. It is also a continent of 500 million people with no electricity. Interestingly, the research also highlights Chinese customs data, which suggests there may be reasons for optimism.


In the 12 months to June 2025, African solar panel imports rose 60 per cent from the prior 12-month period, to reach a record 15 gigawatts. Importantly, this was a broad-based surge that included some of the continent’s lowest-income economies including Mali, Somalia and Sudan.


Reasons behind this include tensions between China and the US, but also European markets seeking to reduce reliance on China. This has meant that Chinese manufacturers have shifted their focus to other foreign markets, as well as being locked in a brutal war for market share with each other. In turn, this has pushed down solar panel prices, making them look increasingly attractive to foreign buyers. As of 2023, solar and wind power together accounted for just six per cent of Africa’s total electricity generation – and they are far off track for the African Union’s goal of having 300 gigawatts of renewable energy installed by 2030 – up from 72 gigawatts (largely hydropower) in 2023.


This might be one to watch. At last year’s COP29 summit, the rich nations agreed to “take the lead” in mobilising $300 billion-a-year in climate finance for developing ones but have since made little progress towards that goal as they slash their foreign assistance budgets. Could the import data be the sign that this commitment is starting to materialise?"

 

Banking Alliance pausing for thought 

 

We have covered Net Zero Banking Alliance woes previously in our publications. The Alliance has now officially “paused” its activities given recent departures from the likes of HSBC, Barclays and UBS. As we highlighted previously, the Alliance tried to reduce commitments to make them palatable to a wider number of banks, however, these efforts have now failed. The Alliance is now seeking to transition from being membership-based to a framework initiative that will provide guidance on how to address climate change. The result of the membership vote should be published at the end of this month. 

 

What does it mean for the future of banking climate commitments? Our belief is that the banks that are serious about aligning to the Paris pathway will continue – they will just need to more clearly articulate their climate strategy for stakeholders. It is understandable that political pressure makes membership of such an alliance a legal headache.

 

What will be interesting to watch will be the divergence of banks who pursue climate targets and those who quietly retreat. We believe this will become a differentiating factor in the months and years to come. 

 

ChatGPT ghosted me 

 

When ChatGPT rolled out version 5, some users weren’t upset about its features - they were upset about its personality. They felt the model had become less friendly, sparking complaints about tone and creativity. It sounds trivial, but it points to something bigger: people are starting to rely on AI for companionship.

 

A recent study found over 70% of U.S. teens have tried AI companions, with a third using them daily for advice, emotional support, and “failure-free” interactions. It’s still a niche use case compared to productivity tools, but the concentration among teens is worrying. Research suggests these tools can ease loneliness in the short-term, but long-term effects often include dependency and mental health risks.

 

Ethical and regulatory scrutiny is intensifying, especially in sectors where AI companions intersect with younger user groups. Educational platforms, which increasingly deploy chatbot tutors, are now part of this conversation alongside social media groups. The US Federal Trade Commission’s recent inquiry into AI chatbots acting as companions, highlighted growing concern over how these technologies shape behaviour - especially among teens who perfectly illustrate these concerns. This comes at a time when social media names are already facing censure for the way they (allegedly) design algorithms that manipulatively exploit the emotional wellbeing of children to generate increased traffic and ad revenues. Integrating these considerations into ESG analysis will be critical, as companies face mounting pressure to demonstrate responsible design, transparent practices, and safeguards against psychological harm. 

 

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Author

Aegon AM Responsible Investment Specialists
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