Although government and regulators have stated a continuing commitment to the development of sustainable finance, the approach to environmental, social and governance (ESG) considerations generally is now only through the lens of promoting growth and competitiveness of UK markets. It is perhaps notable that the Financial Conduct Authority (FCA) Strategy for 2025-2030, published in June 2025, makes no reference to ESG.  In March 2025, the FCA announced that it would not be proceeding with proposed diversity and inclusion requirements for regulated firms.  In August 2025, it further announced that it is considering how to streamline the existing sustainability reporting requirements on firms.  For the year ahead we expect this trend to continue, with no new regulatory initiatives and a focus on streamlining existing requirements.