What's Happening in Sustainability & ESG (10.08 - 17.08) 🌎

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. 🍀

In this edition, we’ll cover:

• US continues to threaten EU over sustainability rules 🌍

• European companies are increasingly reporting the business impacts of extreme heat 🇪🇺

• The first provisions of the EU’s Packaging and Packaging Waste Regulation (PPWR) entered into force 🇪🇺

• US sustainable funds recorded their first quarter of net inflows in nearly four years during Q2 2026 📈

• American Airlines and Infinium completed the first commercial US passenger flight powered by electro-sustainable aviation fuel (eSAF) 🛩️

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🌍 The US government formally urged the EU to further scale back the CSDDD and CSRD, arguing that the European Commission’s Omnibus simplification package did not go far enough to address concerns over the rules’ impact on American companies. In a comment letter, Washington warned it may take action unless the EU reduces what it describes as the regulations’ “extraterritorial reach” and burdensome due diligence and reporting requirements.

The US is calling on the EU to significantly limit the application and enforcement of the CSDDD and CSRD for US businesses, including restricting the rules to EU subsidiaries or EU business partners, exempting US companies from penalties based on non-EU revenues, recognizing the US as a “negligible risk” jurisdiction, and ensuring the CSDDD does not reintroduce mandatory net zero transition plans. The request follows commitments made under last year’s US-EU trade agreement, under which the EU pledged to reduce unnecessary barriers to transatlantic trade.

The EU rejected the criticism, stating that while it remains open to cooperation with the US, its regulatory framework and autonomy are not open to negotiation. The latest dispute follows recent US criticism of the EU’s Carbon Border Adjustment Mechanism (CBAM), highlighting growing transatlantic tensions over climate and sustainability regulation.

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

🔴 European companies are increasingly reporting the business impacts of extreme heat, with mentions of heatwaves, droughts and wildfires reaching a record one in ten earnings calls among companies worth more than $1 billion, according to AlphaSense. While many businesses reported higher demand for products such as air conditioners, fans, pools, sun protection, groundwater pumps and electricity generators, others highlighted operational disruptions, prompting investments in adaptation measures including air conditioning, new products and changes to working practices.

Many executives said the recent heatwaves signal a long-term shift rather than a temporary event, with companies including Engie, Drax and Saint-Gobain describing climate adaptation as an increasingly urgent business priority. Others, however, argued the extreme weather was an anomaly, with companies such as H&M, Jet2 and Ryanair saying they do not expect it to fundamentally change long-term consumer demand or their business models.

🇪🇺 The first provisions of the EU’s Packaging and Packaging Waste Regulation (PPWR) entered into force, introducing new restrictions on PFAS in food-contact packaging and traceability requirements for packaging placed on the EU market. The regulation, adopted in 2024, will be rolled out in phases over the coming years, including requirements for all packaging to be recyclable by 2030, harmonized EU-wide packaging labels from 2028, packaging waste reduction targets, and bans on several single-use plastic packaging formats as part of the EU’s efforts to reduce packaging waste and advance a circular economy.

PRESENTED BY SUSTAINABILITY LIVE

Sustainability LIVE: The London Summit + Awards | 8-9 September 2026, London

Returning to London on 8–9 September 2026, Sustainability LIVE: The London Summit + Awards is a two-day hybrid conference for senior sustainability executives leading climate and ESG transformation. With more than 1,000 attendees, it provides the insights, connections and solutions needed to accelerate progress toward net-zero and stay ahead in a changing business landscape.

Learn more on the event website and register here. Green Digest readers can save 30% on registration using the discount code DIGESTUS30.

WHAT ARE COMPANIES DOING?

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

🛩️ American Airlines and Infinium completed the first commercial US passenger flight powered by electro-sustainable aviation fuel (eSAF), marking the first use of synthetic SAF made from renewable electricity and captured CO₂ at a US commercial airport. The eSAF was produced at Infinium’s Pathfinder facility, blended with conventional jet fuel, and used on a flight from Corpus Christi to Dallas-Fort Worth. The milestone supports efforts to scale next-generation SAF, with Infinium’s Project Roadrunner expected to begin commercial production in 2027 and supply more than 5 million gallons of eSAF annually under an offtake agreement with American Airlines.

⚡️ Brookfield Asset Management launched Lumara Energy, a new India-based renewable energy platform backed by an initial $600 million investment to accelerate the development and construction of clean energy projects. The platform will begin with a pipeline of more than 6 GW of solar, wind, and battery storage projects, aiming to help address financing and execution bottlenecks.

🌳 Mombak has delivered its first reforestation-based carbon removal credits to corporate buyers including Google, McKinsey & Company, and Bain & Company, following the issuance of more than 21,000 tonnes of CO₂ removals from its Amazon restoration projects. The Brazilian carbon removal developer said several deliveries were made more than two years ahead of schedule, demonstrating the scalability of its native reforestation projects and growing demand for high-quality nature-based carbon removal credits.

🟢 Microsoft signed an agreement with Crew Carbon for 23,600 carbon removal units generated through the company’s wastewater alkalinity enhancement technology. The Yale University spinout captures and permanently stores CO₂ by enhancing mineral weathering processes within wastewater treatment plants, offering a scalable carbon removal pathway using existing infrastructure.

Solutions

📊 Novisto launched Novisto Materiality, a new solution designed to help companies conduct data-driven double materiality assessments for CSRD compliance and broader sustainability reporting. The tool combines analysis, stakeholder engagement, and science-based methodologies to help organizations identify, evaluate, and document their most significant sustainability-related impacts, risks, and opportunities.

📊 Updapt launched a new Climate Risk Management module to help companies identify, assess and prioritize physical and transition climate risks across their assets and locations. The solution supports compliance with frameworks including TCFD, CSRD and BRSR by connecting climate risk assessments with broader ESG reporting and helping organizations identify high-risk assets and prioritize resilience actions.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 US sustainable funds recorded their first quarter of net inflows in nearly four years during Q2 2026, attracting almost $3 billion and lifting assets to a record $398 billion, according to Morningstar. The rebound was driven by strong demand for passive investment strategies and energy transition and electricity infrastructure themes linked to rising AI-driven power demand. Globally, sustainable fund assets reached a record $3.7 trillion, with Europe continuing to dominate the market, accounting for 84% of total assets.

However, global sustainable fund launches remained subdued in Q2 2026, with Europe recording a record-low 13 new fund launches against 64 closures, while the US launched just three new funds and closed 22, according to Morningstar. The slowdown reflects weaker investor demand, regulatory scrutiny, greenwashing concerns and political backlash, particularly in the U.S., prompting asset managers to rethink sustainability-focused products.

📑 Morningstar Sustainalytics will shut down its outsourced stewardship service effective November 30 as the company refocuses on its core ESG ratings, research, data and climate insights businesses. Clients will continue to have access to stewardship data during the transition, with the firm describing the move as a strategic decision to concentrate investment on its core strengths. The stewardship unit provided engagement services, norms-based engagement and thematic stewardship programs covering issues such as climate change and human rights.

📈 Copenhagen Infrastructure Partners raised $3 billion at the final close of its Growth Markets Fund II to invest in renewable energy infrastructure across high-growth markets in Eastern Europe, Asia and Latin America. The fund, three times larger than its predecessor, has already committed $1.6 billion across nine projects, including battery storage and renewable energy developments in Chile, Mexico and Romania.

📈 Lloyds Banking Group set a new target to facilitate more than £100 billion in sustainable and transition finance between 2027 and 2030. The new goal builds on the bank’s £70.9 billion of sustainable financing delivered between 2022 and 2025 and is supported by a new Sustainable and Transition Finance Framework designed to direct capital toward both sustainable solutions and credible transition activities, including for hard-to-abate sectors.

M&A

⚡️ TotalEnergies acquired Shell’s onshore renewables business in Europe while selling a 50% stake in a 1.2 GW European solar and wind portfolio to KKR. The Shell acquisition adds 500 MW of operating and under-construction assets and a 3.5 GW development pipeline, while the €1.8 billion KKR deal allows TotalEnergies to recycle capital while retaining joint ownership and operational control of the assets as it advances its Integrated Power strategy in Europe.

🔋 Samsung SDI will acquire General Motors’ 49.99% stake in their SynergyCells battery joint venture, making the Indiana facility its first wholly owned battery plant in North America and shifting its focus from EV batteries to energy storage systems (ESS). The move reflects slower-than-expected EV demand, with Samsung aiming to capitalize on the rapidly growing US ESS market.

📊 Deepki announced three acquisitions, acquiring sustainability consultancy Evora Global and energy data platform Metry, alongside electrification startup Camion. The deals add capabilities spanning climate risk, sustainable finance, automated data collection, energy procurement and agentic AI for electrification planning, enabling real estate owners and investors to optimize energy investments, improve portfolio performance, and accelerate the transition to more resilient, low-carbon buildings.

📊 Context Labs acquired Trafigura’s carbon intelligence platform Kinertic, strengthening its carbon management offering for commodity markets. The acquisition integrates carbon data with trading, logistics and pricing information to help companies meet growing regulatory requirements such as the EU’s CBAM and Methane Regulation.

♻️ Goldman Sachs Alternatives acquired reusable packaging provider Tosca from Apax Partners, aiming to expand its exposure to circular economy and food supply chain infrastructure. Tosca provides reusable plastic containers, pallets and bulk bins through a managed pooling system that helps food producers, distributors and retailers reduce waste, improve efficiency and lower costs.

Funding rounds

🔋 Form Energy raised $750 million in a Series G funding round to scale production and deployment of its 100-hour iron-air battery systems. The funding will support the expansion of its manufacturing facility in West Virginia and accelerate commercial deployments of its long-duration energy storage technology.

⚡️ Sonnedix secured €730 million in financing to refinance, optimize and build renewable energy projects across France, Italy, Portugal and Spain. The funding will support approximately 540 MW of solar capacity and two battery energy storage projects, with a strong focus on Italy, helping the company expand its storage capabilities, advance its hybrid renewable energy strategy, and grow its clean energy customer base.

🔋 Ore Energy raised $43 million in a Series A funding round to scale its iron-air battery technology for long-duration energy storage. The Amsterdam-based startup will use the funding to commercialize its batteries, which can store renewable electricity for up to 100 hours, build its first manufacturing facility, and advance toward gigawatt-hour scale production by 2028. The round was led by Plural and HV.

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