Tara Johnson, research manager at Research in Finance – publisher of Professional Paraplanner, attended the recent SRI Services and Partners Good Money Week event 2026. Here, she highlights some of the key topics that stood out from discussions across the sustainable investment sector.
From SDR implementation and greenhushing, to AI governance and climate transition planning, sustainable investing is evolving in ways that could shape future client conversations.
During discussion, opinions differed on some issues. However, there was broad agreement that sustainable investing is becoming more nuanced, requiring firms to look beyond labels and focus on outcomes.
SDR remains a work in progress
The UK’s Sustainability Disclosure Requirements (SDR) framework was a recurring topic throughout the event.
Edentree Investment Management highlighted their experience as the first fund house to achieve SDR labels across all of its funds.
While there was broad support for the objectives behind the regime, delegates acknowledged that implementation has proved more complex than many initially expected.
Questions remain around the significant number of funds with sustainability characteristics that currently sit outside the labelling regime.
For many firms, the challenge now is helping advisers and clients understand what labelled and unlabelled funds represent in practice, while the market continues to adapt.
Geopolitics reshapes sustainable investment debates
The impact of global political developments on sustainable investing was another key discussion point.
In particular, attitudes towards defence are beginning to shift. Historically, defence businesses have often been excluded from sustainable investment strategies.
However, some investment managers argued that growing concerns around national security are prompting a reassessment of how the sector is viewed within ESG frameworks.
The debate highlights the increasingly complex trade-offs investors and fund managers face when balancing ethical considerations, societal needs and long-term sustainability objectives.
The conversation echoed findings from other recent studies Research in Finance has conducted on the topic, which identify differing views on the role of defence within sustainable investment strategies.
Greenhushing raises new questions
Delegates discussed the rise of “greenhushing”, where companies become less vocal about sustainability initiatives and climate commitments despite continuing work in these areas behind the scenes.
Several fund managers suggested that reduced public communication should not automatically be interpreted as reduced commitment.
Instead, changing political pressures and scrutiny may simply be influencing how companies choose to communicate ESG-related activity.
This reinforces the importance of looking beyond public statements and consider what companies are actually doing.
AI brings fresh governance challenges
Artificial intelligence emerged as one of the most significant points of the day.
While the potential benefits of AI are widely recognised, speakers highlighted growing concerns around governance, transparency and disclosure.
These challenges can be particularly acute when investing in private companies, where information is often more limited and the technology itself continues to develop rapidly.
As a result, engagement is becoming an increasingly important tool. Understanding how organisations are developing and overseeing AI systems can help investors decide whether continued engagement is justified.
Broadening the social dimension of ESG
The social element of ESG was also spotlighted through discussion of a corporate mental health benchmark designed to assess and encourage improvements in workplace mental health practices.
The initiative illustrates how the social pillar of ESG is expanding beyond more familiar topics such as diversity and employee engagement.
It also highlights how investors are using engagement to influence issues beyond environmental concerns.
Climate transition plans under scrutiny
Climate transition planning was another major talking point.
Recent extreme weather events have brought greater urgency to discussions around climate risk and resilience.
Speakers stressed that setting credible climate goals and developing transition plans should increasingly be viewed as core business practice rather than a separate sustainability exercise.
However, delegates also noted that ambitions alone are no longer enough. Firms are increasingly expected to show progress and demonstrate how commitments are turning into action.
The emphasis on demonstrating progress rather than simply setting targets also mirrors findings from Research in Finance’s wider studies, where evidence and accountability continue to emerge as increasingly important considerations.
Starting with the client
A session on the Adviser Sustainability Group report focused on the role advisers play in helping clients navigate sustainable investing.
The discussion linked closely with Consumer Duty, with speakers stressing the importance of understanding what clients actually want, need and care about.
Without a clear understanding of sustainability concepts and their practical implications, clients may struggle to express meaningful preferences or make informed decisions.
A more nuanced conversation
If there was one theme that ran throughout the conference, it was that sustainable investing is becoming less black and white.
From SDR implementation and climate transition planning to defence and AI, firms are increasingly having to grapple with issues that do not lend themselves to simple answers.
That places greater emphasis on understanding the detail and helping clients make informed decisions in an evolving investment landscape.
Main image: green, lens, jasper-garratt-CL96u03iK_Y-unsplash
