What's Happening in Sustainability & ESG (01.09 - 07.09) 🌎

This week’s read time: 8 minutes

Welcome to this edition of Green Digest, where you will get updated about everything happening in the Sustainability & ESG space in less than 10 minutes. 🌎

We go through tons of articles and data from the most reliable sources, filter & simplify them, and serve them to you in bite-sized chunks every week. 🍀

PRESENTED BY 51toCarbonZero

The Scope 3 Blind Spot: What Your Supplier Data Isn’t Telling You (Webinar)

Join us on Wednesday 16 September at 1pm BST for The Scope 3 Blind Spot: What Your Supplier Data Isn’t Telling You.

Climate experts from 51toCarbonZero will explore the biggest blind spots in supplier emissions data, why they matter for reporting and decarbonisation, and how leading organisations are moving beyond spreadsheets and assumptions to build a more accurate, scalable approach to Scope 3.

Attend live and receive emissions data for your top 10 suppliers free of charge. Limited spots available.

In this edition, we’ll cover:

• The latest on California's climate reporting rules 🇺🇸

• The UK government proposed changes to its corporate reporting framework 🇬🇧

• UN warns 1.5°C is out of reach, but climate action could also deliver major economic gains 🌍

• AI-powered product carbon footprinting tools can produce convincing final emissions estimates while making major errors in the calculations 📊

• Apollo reported that its sustainability work with portfolio companies has resulted in an estimated $164 million in run-rate EBITDA improvements 📈

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇺🇸 California regulators confirmed a series of reliefs to ease companies into the first year of mandatory emissions reporting under SB 253, with initial Scope 1 and 2 reports due November 10. CARB will allow companies to use emissions data they already had or were collecting when its 2024 enforcement notice was issued, accept multiple reporting formats and submissions without limited assurance, and will not require a specific emissions factor dataset. Companies that were not collecting or planning to collect Scope 1 and 2 data may skip emissions data in 2026 but must submit a statement of non-reporting, while fuller requirements are being developed for 2027 and beyond. CARB will accept multiple reporting formats, including its voluntary intake form, email, draft template and existing CDP reports, as well as submissions without limited assurance. No specific emissions factor dataset is required, and annual reporting fees are estimated at around $3,000 per company.

The requirements will tighten significantly in 2027, when the rules will be fully enforced, Scope 1 and 2 emissions must be verified by a third party, and five categories of Scope 3 emissions will need to be disclosed. CARB’s sector-specific listening sessions confirmed the five proposed Scope 3 categories while leaving open the possibility of adding the remaining ten later. Its reporting template will remain optional, and companies may exclude one or more of the five Scope 3 categories if they explain why those categories are not material to their business. CARB is developing further guidance for 2027 and beyond. While California’s separate climate risk reporting law, SB 261, remains stalled by litigation, SB 253 is moving ahead as the first mandatory corporate climate disclosure requirement in the US.

Stakeholders have also raised practical concerns about the proposed rules, particularly around Scope 3 accounting and verification. Assurance providers warned that spend-based calculations could be difficult to verify when limited assurance begins in 2030, while food and agriculture companies said the proposed requirement to recalculate emissions when a baseline changes by more than 5% could trigger annual recalculations because of natural fluctuations. Agricultural companies also flagged potential double-counting of Scope 3 emissions across supply chains.

PRESENTED BY ECONOMIST IMPACT

Economist Impact’s 6th annual Sustainability Week Europe | October 6th-7th 2026, Amsterdam

Economist Enterprise’s 6th annual Sustainability Week Europe brings together leaders to share case studies, insights and ideas to examine the strategic decisions that will define Europe's industrial future. Hear discussions on energy security, manufacturing, AI, finance, supply chains and clean technology as participants explore how organisations can respond to today's pressures while positioning Europe for long-term growth.

Learn more on the event website and register here.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇬🇧 The UK government proposed a major overhaul of its corporate reporting framework that could remove mandatory strategic report disclosures on environmental impact, employee diversity, social responsibility, human rights, community engagement and anti-corruption measures. Companies would still report on these issues where financially material, while the government is considering a new “very large” company threshold to simplify which businesses face non-financial reporting obligations. Existing climate-related financial disclosure requirements are unaffected for now and are being reviewed separately, while the government will also consider how its new IFRS-aligned UK Sustainability Reporting Standards should be incorporated into the Companies Act. The consultation runs until November 30, 2026.

🌍 Keeping global warming below 1.5°C is now beyond reach, according to a UNEP report, which places peak warming at around 1.8°C even under an optimistic scenario. Current policies point to approximately 2.6°C of warming by 2100, with every additional fraction of a degree increasing risks to communities, ecosystems and economies.

UN also reported that tackling air pollution and climate change together could boost global GDP by 2.8% by 2035 and 4.5% by 2050, finding a strong economic case for addressing the two problems together. The 25 measures identified, including renewable energy, EVs, cleaner cooking, more efficient fertilizer use and ending routine oil and gas venting, would cost around 0.7% of global GDP over the coming decade but generate about $15 in economic benefits for every $1 invested, through lower healthcare costs, higher labour productivity, avoided damage and healthier lives.

The report estimates that delaying action by a year would forgo more than $1.5 trillion annually in benefits, while noting that climate change and air pollution share many of the same drivers and tackling them together produces greater returns than addressing them separately.

WHAT ARE COMPANIES DOING?

Corporate sustainability, new tools and services & companies in the news

📊 AI-powered product carbon footprinting tools can produce convincing final emissions estimates while making significant errors in the calculations behind them, according to research from Watershed. Testing models from Anthropic, DeepSeek, Google and OpenAI across 175 products found the best model came within two multiples of expert estimates 77% of the time, but accuracy fell as low as 37% when models had to decompose products into components and calculate their individual emissions. The findings suggest companies should scrutinize AI tools’ intermediate calculations rather than relying on final footprint estimates alone.

🏭 Yara opened Europe’s largest industrial carbon capture facility at its Sluiskil fertiliser plant in the Netherlands. The facility can capture up to 800,000 tonnes of CO₂ annually from ammonia production. Captured emissions will be shipped to Norway for permanent storage beneath the seabed through Northern Lights, demonstrating cross-border infrastructure for reducing industrial emissions while maintaining production.

🌾 Agreena secured a seven-year agreement to sell 4.45 million tonnes of soil carbon credits to one of the world’s largest commodity trading houses. The AgreenaCarbon Kazakhstan project aims to bring 1.6 million hectares of farmland under regenerative practices by 2028, including reduced tillage, residue retention and cover crops, while generating revenue to help farmers restore soil health and improve resilience.

🚢 Maersk partnered with Anemoi Marine Technologies to trial a Rotor Sail on a container ship, testing wind-assisted propulsion as a means of lowering fuel use and emissions. A 35-metre-high sail is scheduled for installation on an 8,700 TEU vessel in mid-2027, with testing conducted during normal commercial operations, expected to include Atlantic voyages. The pilot will help Maersk assess the technology’s operational performance and potential relevance across its fleet.

🟢 Microsoft and NORDEN completed a pilot maritime book-and-claim purchase that NORDEN says makes it the first maritime carrier to deliver verified emissions reductions through the RSB Book & Claim Registry. The model lets customers account for verified shipping emissions reductions without requiring the low-emission fuel to be physically used on the customer’s specific voyage, helping aggregate demand for lower-emission marine fuels.

Solutions

📊 Datamaran rebranded from an ESG issue-management tool into an AI-powered governance platform, reflecting sustainability’s broader integration into enterprise risk management. Its technology helps leadership teams prioritise immediate business risks using regulatory monitoring, corporate disclosures and peer benchmarking.

🤝 EcoVadis and CO2 AI partnered to strengthen Scope 3 decarbonisation by integrating supplier carbon ratings and primary emissions data into CO2 AI’s footprinting platform. The collaboration helps mutual customers replace spend-based estimates and industry averages with supplier-specific insights. Procurement and sustainability teams can prioritise high-impact interventions, track actual supplier progress and build audit-ready reporting.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 Apollo Global Management reported that its sustainability work with portfolio companies has resulted in an estimated $164 million in run-rate EBITDA improvements, alongside measurable reductions in emissions intensity. The $1 trillion asset manager completed more than 9,000 sustainability risk assessments covering 90% of its AUM in 2025, treating sustainability “through the lens of a management discipline” and incorporating factors such as energy strategy, supply chains and climate risks into investment and portfolio management. Apollo aims to reduce the carbon intensity of flagship investments by 15% over the hold period, with the ultimate goal of driving financial value that can be captured on exit.

📈 Norway’s $2.3 trillion sovereign wealth fund is warning of a steady erosion of shareholder rights across major markets, citing the spread of dual-share structures, more voluntary reporting requirements and restrictions on investors’ ability to sue companies and boards. The world’s largest single stock market investor says growing competition between stock exchanges for IPOs is encouraging more deviations from traditional governance standards, particularly by giving founders stronger voting rights. The fund is pushing exchanges, regulators and companies for stronger guardrails, including sunset clauses around unequal voting structures.

🌲 J.P. Morgan Asset Management renamed Campbell Global as J.P. Morgan Natural Capital, broadening its focus across land, carbon, biodiversity and nature-related assets. Overseeing approximately $11 billion and over 1.5 million acres globally, the platform retains its forestry expertise following its 2021 acquisition. The rebrand reflects growing institutional demand, increased scale and opportunities combining financial returns with sustainability benefits.

🔆 Aligned Climate Capital launched and held the first close of its seventh solar infrastructure fund, targeting $500 million for US solar and storage. More than double its predecessor, the strategy finances and operates construction-ready projects, with over 500 MW identified, building on 56 previous acquisitions.

📈 Auxxo’s second Female Catalyst Fund closed at €33.3 million for European female-founded pre-seed and seed startups. The Berlin firm requires a female founder with 20% of founder shares. Anchored by the European Investment Fund, it backs 11 companies across climate data, AI, robotics, space and healthcare. A new founder matchmaking platform addresses women’s underrepresentation in funding and leadership.

M&A

⚡️ Vertiv agreed to acquire microgrid and advanced-power-controls specialist UtilityInnovation Group. The acquisition would add microgrid controls, onsite generation and storage orchestration, microgrid switchgear and behind-the-meter power architecture to Vertiv’s data-center infrastructure portfolio.

♻️ Eurazeo-backed T1A acquired Flex IT, creating a European circular IT business with approximately €150 million in revenues. The combination connects corporate equipment collection, secure data erasure and refurbishment with distribution through around 13,000 resellers.

Funding rounds

⚡️ Gridsight raised $26 million in Series B financing to expand its grid-capacity software in the US and Australia. The platform uses smart-meter and network data to help utilities identify hidden capacity, manage constraints and connect distributed energy resources without waiting for full network rebuilds.

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