2025 ESG and Sustainability Barometer

The status of ESG and Sustainability integration in the UK and European fund markets

The 2025 ESG and Sustainability Barometer report, which analyses over 9,500 investment strategies managed by more than 460 asset managers, evaluates key ESG and Sustainability-related trends in the European and UK fund markets. It also highlights a clear downward trend in asset manager ratings across each Sustainable Finance Disclosure Regulation (SFDR) classification and non-EU ratings.

The findings come at a time when sustainability standards and expectations have increased, alongside a pullback of several asset managers from key initiatives like the Net Zero Asset Managers initiative (NZAM) and Climate Action 100+ (CA100+), as well as a general reluctance to discuss ESG and Sustainability in the US.

MainStreet Partners’ research found that 13% of funds have failed its regulatory adherence assessment – which considers the relevant naming convention of the specific strategy together with the consistency of documentation, ensuring it is clear, not misleading, and uses fitting and targeted language.

Nearly a quarter (23%) of all Article 8 funds remain at risk of greenwashing. However, the proportion of Article 9 funds that have a greenwashing risk has reduced over time, now sitting at 3%.

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