What's Happening in Sustainability & ESG (17.02 - 23.02) 🌎

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:

• The business case for sustainability dominates GreenBiz 26 🟢

• The US pushed the International Energy Agency to drop climate change from its list of core priorities ⚡️

• The EU Council approved Omnibus I at the General Affairs Council, marking the final formal step before publication in the EU Official Journal 🇪🇺

• Global corporate clean energy PPA volumes fell 10% in 2025 to 55.9 GW, with Big Tech accounting for 49% of activity ⚡️

• Microsoft said it reached its goal to match 100% of its annual global electricity consumption with renewable energy ⚡️

• and other news 🌍

PRESENTED BY BESIRIUS

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🟢 GreenBiz 26 wrapped up last week in Arizona, US, and one theme dominated the conversations: executives repeatedly emphasized the business case for sustainability as a driver of efficiency, cost savings, and waste reduction, reflecting a shift from the more expansive growth narratives of the ESG boom years. As regulatory pressures evolve and some sustainability teams face downsizing, many leaders said they continue advancing climate goals primarily by identifying operational efficiencies and ensuring compliance.

Yet some executives argued that focusing solely on efficiency risks limiting sustainability’s potential as a growth engine. Examples such as increased sales by 14% for Amazon’s “Climate Pledge Friendly” products and the long-term growth of renewable energy suggest that sustainability investments can unlock revenue and innovation when market conditions align. While companies remain cautious and return-focused, the discussion in Phoenix highlighted an ongoing tension between positioning sustainability as a cost-saving necessity versus a catalyst for long-term business growth.

Another interesting debate was whether the CSO role has become irrelevant, with most attendees rejecting that view. Critics argued climate accountability should sit with executives who control capital and strategy, implying the CSO role must evolve. Defenders said CSOs remain vital as long-term strategic leaders and counterweights to short-term pressures, especially as climate risks intensify. A Trellis survey found that three-quarters of sustainability professionals believe the role is more essential than ever, though some cited limited authority and budget constraints as challenges.

Trellis and GreenBiz co-founder, Joel Makower, argued that sustainability leaders are not at the end of their relevance but in a transitional phase marked by political backlash and shifting expectations. He suggested that the role must move beyond compliance and influence toward deeper integration into finance, operations, and risk, helping redesign business models for resilience and long-term value. The consensus was that the CSO is not obsolete, but must adapt and lead more strategically in a tougher environment.

PRESENTED BY ECONOMIST IMPACT

Economist Impact’s 11th annual Sustainability Week | March 2nd - 4th 2026, London

Economist Impact’s 11th annual Sustainability Week brings together leaders to share case studies, insights, and ideas to drive action on sustainability. With more than 400 speakers, 2,500 in-person attendees, and 80 case studies, the 11th annual Sustainability Week tackles sustainability-related business challenges, finds solutions, and gets results. Meet the most influential industry leaders, policymakers, and innovators.

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MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇺🇸 At the International Energy Agency’s 2026 ministerial meeting in Paris, the US pushed the IEA to drop climate change from its list of core priorities, threatening withdrawal unless the agency moved away from its net-zero focus. The final chair’s summary emphasized energy security, resilience, critical minerals, and electricity systems instead of the 2050 climate goals. European governments reaffirmed their commitment to clean energy and electrification, highlighting growing transatlantic divergence.

At the state level, ten Republican attorneys general sent letters to nearly 80 companies warning of potential antitrust and consumer protection actions tied to participation in plastic reduction and sustainable packaging coalitions. The officials argued that coordinated sustainability targets could restrict competition and raise prices, requesting legal justification for continued involvement.

Meanwhile, the Trump administration rolled back 2024 Biden-era limits on mercury and hazardous air pollutants from coal power plants, reverting to 2012 standards. The EPA said the move reduces compliance costs and supports baseload power amid rising electricity demand. The separate repeal of the EPA’s “endangerment finding,” which underpins much federal climate regulation, is already facing legal challenges from environmental groups and states.

🇪🇺 The EU Council approved Omnibus I at the General Affairs Council, marking the final formal step before publication in the EU Official Journal. Transposition into national law begins 20 days after publication; Member States have 12 months for CSRD amendments, and CSDDD changes must be implemented by 26 July 2028.

The EU Commission also responded to the Ombudswoman’s inquiry on Omnibus I, citing timelines, geopolitical context, and implementation difficulties as reasons for urgency. It argued that without swift action, CSRD Wave 2 would have entered into force, that a challenging geo-economic environment increased pressure, and that implementation challenges, including around ESRS, required rapid intervention. Critics note that alternative procedural options existed, and suggest implementation issues could have been addressed separately.

🌍 ISO launched ISO 14092:2026, a new international standard providing a structured framework for designing, implementing, and monitoring local climate adaptation plans. The guidance helps governments and communities define governance, assess and prioritize climate risks, engage stakeholders, and track progress against impacts such as floods and heatwaves.

🇮🇳 India’s SEBI launched a working group to review and potentially update its regulatory framework for ESG Rating Providers, following stakeholder feedback on its 2021 rules. The review aligns with global efforts, including in Europe and the UK, to strengthen oversight, transparency, and conflict-of-interest disclosures in the ESG ratings market, in line with IOSCO recommendations.

PRESENTED BY SUSTAINABILITY MAGAZINE

Sustainability LIVE: The US Summit returns on 21-22 April, bringing together leaders who are driving real progress on sustainability across their organisations. With over 1,000 in-person attendees, the two-day event delivers the insights, connections, and practical takeaways needed to move from intention to impact. The agenda features 50+ speakers, 10 focused content themes, and four executive workshops designed to support action on climate, circularity, responsible growth, and culture change.

WHAT ARE COMPANIES DOING?

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

⚡ Global corporate clean energy PPA volumes fell 10% in 2025 to 55.9 GW, with Big Tech accounting for 49% of activity and Meta and Amazon leading purchases. The US hit a record 29.5 GW, driven by nuclear and firm power deals, while buyer numbers shrank sharply. Volumes declined in EMEA and Asia Pacific amid price volatility and policy risks.

⚡ Microsoft said it reached its goal to match 100% of its annual global electricity consumption with renewable energy. Since 2020, the company built a 40 GW clean energy portfolio across 26 countries, including a 10.5 GW deal with Brookfield, and has become the largest corporate buyer of carbon removal credits, signing agreements to remove 45 million tonnes of CO₂ in 2025.

Microsoft also signed a 15-year deal with Rainforest Builder to deliver up to 1.8 million carbon credits from a large-scale restoration project in Sierra Leone. The credits will come from Project Buffalo, which plans to plant over 10 million trees across 15,000 hectares of degraded land, supporting biodiversity and local communities.

📑 EY launched its Sustainable Operating Blueprint, a framework aimed at helping companies integrate sustainability into enterprise strategy rather than managing it as a separate function. The AI-enabled roadmap outlines steps from defining objectives and assessing gaps to prioritizing transformation initiatives. Structured around “strategic clarity” and “operational embeddedness,” it connects sustainability considerations to areas such as governance, decision-making, technology, product development, and performance management.

🚚 Amazon expanded its carbon marketplace to include lower-carbon fuel inset credits and superpollutant neutralization credits, targeting transport and fuel-related supply chain emissions. In addition to forest and carbon removal credits, companies can now invest in renewable diesel and biodiesel credits, with maritime fuel credits planned, as well as credits funding methane and refrigerant destruction.

🟢 Exomad Green signed a multi-year offtake deal with Senken to supply 105,000 tons of permanent carbon removal credits from Bolivian biochar projects between 2026 and 2028, targeting the aviation sector. The agreement, worth nearly $30 million, reflects growing airline demand for durable carbon removal over traditional nature-based credits as part of net-zero strategies, with biochar offering scalable, long-term carbon storage and soil benefits.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🇺🇸 The US SEC extended compliance deadlines for its amended “Names Rule,” pushing requirements to 2027 for fund groups over $10bn in AUM and to 2028 for smaller funds. The rule mandates that funds with terms like “growth” or “ESG” invest at least 80% of assets in line with their stated objective. The agency also removed certain N-PORT reporting requirements and signaled a broader regulatory review, citing cost concerns. This marks the second delay under the Trump administration, with asset thresholds also revised upward.

M&A

🌍 Mondra and inoqo merged to create a unified global platform focused on accelerating decarbonisation across the food retail sector. The deal combines inoqo’s European impact database and market expertise with Mondra’s Scope 3 technology, forming a single AI-powered platform for product-level impact assessment, supplier engagement, and climate risk management.

Startup funding rounds

⚡️ Lydian Energy secured $689 million in financing to support 18 solar and battery storage projects totaling 4.4 GW across Texas, Utah, and New Mexico. Founded in 2024, Lydian Energy provides distributed solar and energy storage for commercial, industrial, and institutional customers.

🧪 Utility Global raised $100 million in a Series D round to scale its hydrogen-based H2Gen platform for decarbonizing hard-to-abate industries such as steel, refining, and chemicals. The technology produces clean hydrogen and a high-purity CO₂ stream from industrial off-gases without electricity, enabling lower-cost carbon capture and integration into existing infrastructure.

🌿 hummingbirds raised €50 million in Series A funding to scale conservation and ecosystem restoration carbon projects globally. The company supports early-stage, high-integrity carbon projects and has developed over 20 initiatives expected to deliver 45 million tons of CO₂e reductions while restoring 700,000 hectares and supporting 400,000 livelihoods.

✈️ LanzaJet raised $47 million toward a $135 million equity round to scale its Alcohol-to-Jet technology, converting waste-based ethanol into low-carbon jet fuel. LanzaJet recently began operations at its Georgia facility in the US, capable of producing 10 million gallons annually under long-term offtake agreements.

✈️ Metafuels raised $24 million in a Series A round to commercialize its synthetic sustainable aviation fuel technology that converts green methanol into jet fuel. Metafuels aims to make SAF cost-competitive with fossil jet fuel while avoiding feedstock constraints that limit conventional SAF pathways.

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