Largest European and UK Pension Funds Review Failed-Sustainability Asset Managers

Today’s ESG Updates

• EU & UK Pension Funds Double Down on ESG: Major funds drop asset managers over weak sustainability; US sees $8.6bn in ESG outflows.
• Extreme Weather Hits EU Farmers Hard: €28B lost yearly, mostly from drought; EU boosts climate resilience efforts.
• Barratt London Launches Passivhaus Homes: 728 ultra-efficient homes planned to cut energy use by 75%.
• Warner Bros. Downgraded to Junk: S&P cites collapsing linear TV model and $38B debt.

European and UK pension funds double down on ESG as the US lags behind

European pension funds and other long-term asset owners are doubling down on sustainable investing, even as data shows a retreat in ESG commitment from asset managers from political backlash in the US. Large pension funds like £33bn People’s Pension, €60bn Dutch industrial workers’ fund PME, and €250bn PGGM group have pulled money and put asset managers under review over sustainability record concerns with partners. The move comes as ShareAction’s review of 76 asset managers found that large asset managers like BlackRock, State Street, and Vanguard failed basic sustainability standards, receiving E grades. PME is reviewing a €5bn mandate with BlackRock, whilst AkademikerPension has ended a €429 million mandate with State Street. ESG fund outflows recorded a record $8.6bn globally in Q1 2025, signifying the 10th consecutive quarter of US ESG redemption. As European and UK funds remain committed to ESG solutions, a growing transatlantic divide emerges 

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Further reading: European and UK pension funds drive transatlantic split on sustainable investing

EU farmers lose €28 billion a year due to extreme weather, EU reports

Reports from the EU show that the EU agriculture sector loses, on average, €28 billion annually due to extreme weather, which accounts for 6% of EU crop and livestock production. Currently, only 20-30% of the losses are insured through public, private, or mutual systems, with insurers not accounting for climatic-related losses. A further 66% of crop loss is projected for 2050, with drought being the largest culprit, accounting for more than half of all agriculture losses. Spain and Italy are hit the hardest, with a predicted €20 billion in annual losses from agriculture climate impacts. To counter the issue, the European Commission and European Investment Bank are investing in resilience measures and incorporating ESG solutions to soften the impact on farmers. 

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Further reading: Extreme weather costs EU farmers 28 billion euros a year, EU says

Barratt London commits to the UK’s biggest Passivhaus rollout 

Barratt London is launching a new Lo-E approach to housebuilding based on Passivhaus principles that offer high energy efficiency and climate resilience. Lo-E homes are designed to use 75% less energy for heating, resulting in two-thirds lower annual heating bills for residents. Triple glazed windows, low-carbon air tempering systems, and exhaust air heat pumps will all be standardised to reduce running costs. Plans for 728 Lo-E homes have been submitted within London. The plan is part of the UK government’s larger initiative to deliver 1.5 million affordable and sustainable housing. 

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Further Reading: Barratt London commits to Passivhaus standards for new homes

Warner Bro. Discovery downgraded to junk by S&P, linear TV is no longer sustainable 

S&P Global Ratings downgraded Warner Bros. Discovery to BB+, pushing it below investment grade and highlighting the company as a high-risk investment. The linear TV business continues to be unsustainable, with people moving to subscription bases and streaming platforms. Warner Bros has approximately $38 billion in outstanding debt, with its leverage projected to rise to 4.3x by the end of 2025. The downgrade signifies a larger trend of the TV industry struggling to remain profitable in the changing landscape. A focus on sustainability and ESG initiatives means that the industry is moving away from traditional TV and making streaming platforms the new baseline.  

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Further reading: Warner Bros. Discovery Downgraded to Junk by S&P

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Wikimedia Commons