What's Happening in Sustainability & ESG (21.04 - 28.04) 🌎

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:

• Carbon accounting at a crossroads 📑

• The ISSB will develop nature-related disclosures as a non-mandatory IFRS Practice Statement, rather than a standalone standard 📑

• A BSI survey of 7,000+ G7 business leaders shows companies remain committed to net zero, but are reshaping strategy and expectations amid rising uncertainty 🌍

• bp shareholders rejected two key resolutions at its AGM, including proposals to scale back climate-related disclosures and allow virtual-only meetings 🛢️

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

A new leadership era for global carbon accounting

The Greenhouse Gas Protocol has appointed Tim Mohin as its first CEO, marking a significant strategic shift as the organization enters what he described as a “once-in-a-generation restructuring of how the world accounts for carbon.” Mohin joins at a crucial moment, as the GHG Protocol works to overhaul frameworks developed more than 15 years ago, strengthen governance through a newly established standards board, and align global reporting systems alongside the International Organization for Standardization (ISO), after being tasked by COP30 organizers to lead global alignment efforts over the next two years.

A growing divide in corporate climate standards

At the same time, the organization sits at the center of a growing debate that could reshape the corporate climate reporting landscape. The Science Based Targets initiative (SBTi) is seeking advice from climate accounting experts on how to measure emissions from companies’ electricity use, including whether to adopt tougher measurement criteria being considered by the GHG Protocol, keep its current rules, or potentially adopt a hybrid approach. A divergence between the two could lead to a significant breakup in the voluntary carbon accounting sector and create confusion for companies, which have historically relied on close alignment between the frameworks.

The core debate: how companies measure electricity emissions

The debate largely centers on how companies account for electricity-related emissions. Under current rules, firms can use renewable energy certificates and long-term power purchase agreements to offset emissions, an approach that advocates say has added significant green energy to the overall electricity system. However, critics argue this method can result in emissions figures that are not representative of the emissions created from the power companies actually use, while proposed time-and-location-based accounting would more closely link emissions to when and where electricity is consumed.

Corporate backlash to stricter Scope 2 rules

These proposed changes have already triggered strong pushback from the corporate sector. A coalition of 48 companies representing more than $4.7 trillion in annual revenue, including Amazon, Apple, and Schneider Electric, said they were “extremely concerned” that stricter Scope 2 rules, such as hourly matching and local deliverability requirements, could significantly harm energy transition efforts. The group warned that the changes could discourage voluntary clean energy procurement, increase electricity prices for companies and consumers, and slow system-wide decarbonization, while offering only limited benefits to carbon accounting accuracy.

What comes next

As the GHG Protocol prepares to finalize its updated standards later this year, the outcome of this debate will be critical. A move toward stricter accounting could reshape how companies report electricity-related emissions, but risks fragmenting the reporting ecosystem and creating confusion for companies.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

📑 The ISSB announced that it has decided to proceed with the development of proposed requirements for companies to provide nature-related disclosures in the form of an IFRS Practice Statement, instead of a mandatory standalone standard. The approach aims to avoid disrupting the implementation of IFRS S1 and S2, while still guiding companies on reporting nature-related risks, which are already required if material. The ISSB noted the framework could become mandatory in some jurisdictions and left open the possibility of a future standard, with a draft expected in October 2026.

🌍 A BSI survey of 7,000+ G7 business leaders shows companies remain committed to net zero, but are reshaping strategy and expectations amid rising uncertainty. While 83% still target net zero and 78% pursue it regardless of policy shifts, firms are increasingly reframing efforts around resilience and risk, with 61% changing communication and 69% increasing action; however, over one-third have revised or reevaluated targets and 13% dropped them entirely. Policy uncertainty remains the biggest barrier (76%), limiting investment confidence, and only ~55% believe they will achieve net zero, highlighting a gap between ambition, execution, and confidence.

🇪🇺 The European Commission launched “AccelerateEU,” a strategy to address rising energy costs and reduce dependence on imported fossil fuels, which have already cost the EU an extra €24 billion amid recent geopolitical tensions. The plan combines short-term relief measures like targeted subsidies, energy vouchers, and tax adjustments with coordinated actions such as gas storage management and a new Fuel Observatory to monitor supply and prevent shortages. The EU also aims to accelerate structural change by scaling clean, homegrown energy through electrification, grid expansion, and faster deployment of renewables. Backed by €219 billion in EU funds and a broader push to mobilize up to €660 billion annually in investment, the strategy positions energy transition as both an economic and security priority, aiming to strengthen resilience against future crises.

WHAT ARE COMPANIES DOING?

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

🚗 GM announced it has reached 100% renewable electricity for all US operations in 2025, becoming the first US automaker to hit this goal, while also matching 70% of its global electricity use with renewables and cutting Scope 1 and 2 emissions by 52% since 2018. The company highlighted economic benefits from its clean energy investments, including $1.9 billion in GDP impact and support for around 1,500 construction jobs annually, alongside operational advantages such as price stability, improved grid resilience, and reduced reliance on foreign energy.

⚡️ Apple reported that its suppliers now use over 20 GW of renewable energy capacity in 2025, more than doubling since 2021, helping avoid over 26 million tons of emissions, as part of its push to decarbonize a supply chain that represents more than half of its footprint. While total value chain emissions remained flat due to higher transportation emissions, the company has still reduced emissions 60% since 2015 and continues to target carbon neutrality across its business and supply chain by 2030, alongside progress in areas like 100% fiber-based packaging and increased recycled materials.

✈️ DSV, United Airlines, Microsoft and Phillips 66 partnered to scale sustainable aviation fuel (SAF), aiming to unlock up to 41.6 million liters and cut around 100,000 tonnes of lifecycle emissions. United will use the fuel, while DSV and Microsoft participate via a book and claim model that allocates verified emissions reductions independently of physical use, enabling scalable decarbonization. The deal is ISCC-certified and tracked through SAFc registries to ensure transparency and avoid double-counting.

🌾 Amazon signed a long-term carbon credit offtake deal with The Good Rice Alliance to support methane reductions from rice farming in India, covering over 685,000 tons of CO₂e. The program works with 13,000+ farmers across 35,000 hectares, using practices like alternate wetting and drying to cut emissions from a sector responsible for 8–10% of global methane. Credits are measured via field data, remote sensing, and third-party verification under Verra standards.

Solutions

🤖 Watershed launched AI “agents” to automate data cleaning, analysis, and reporting, helping sustainability teams move faster on decarbonization. The tools handle complex workflows such as emissions analysis, data structuring, and ESG reporting, while identifying hotspots and recommending actions. Alongside this, the company also introduced an 8-week AI Fellowship program to train teams on using these capabilities effectively.

📊 Schneider Electric launched Resource Advisor+ for Climate Risk, an AI-powered tool to help companies assess exposure to physical climate hazards and quantify financial impacts. The solution analyzes risks across 28 climate hazards and 7 biodiversity indicators, identifies vulnerable assets and suppliers, and provides tailored adaptation recommendations, supporting better planning, investment, and resilience decisions within its broader sustainability intelligence platform.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🗳️ bp shareholders rejected two key resolutions at its AGM, including proposals to scale back climate-related disclosures and allow virtual-only meetings, with both failing to reach the required 75% approval. The vote follows pressure from activist group Follow This and institutional investors, who criticized bp’s recent strategy shift toward increased oil and gas investment. Shareholders effectively blocked efforts to remove earlier climate disclosure commitments, reinforcing expectations for transparency despite the company’s argument that newer regulatory frameworks make them redundant.

🇪🇺 The EU, alongside financial partners, launched the Global Green Bond Initiative Fund, aiming to mobilize up to €20 billion in private capital for sustainable infrastructure projects in low and middle-income countries. Managed by Amundi, the fund will allocate at least 20% to the least developed countries and focus on both euro-denominated and local currency green bonds, supporting climate goals while strengthening local capital markets and the international role of the euro.

🏦 A group of institutional investors asked the UK’s Financial Reporting Council to review HSBC’s 2025 accounts and audit, raising concerns that the bank may not be adequately reflecting climate-related risks. They also flagged limited transparency on how PwC assessed these risks in its audit. Investors argue HSBC’s view of minimal short to medium-term climate impact may be overly optimistic given exposure to physical and transition risks, warning that insufficient disclosure and accounting could put capital at risk.

⚛️ X-energy raised over $1 billion in its IPO to scale deployment of small modular reactors (SMRs), with strong demand pushing pricing above expectations. The company is developing advanced nuclear projects with partners including Amazon, Dow and Centrica, targeting over 11 GW of capacity, as SMRs gain traction as a carbon-free solution for rising energy demand from industry and data centers.

🌱 The World Bank raised $120 million through a “Spekboom Restoration Outcome Bond” to fund ecosystem restoration and job creation in South Africa, backed by an Amazon carbon credit offtake deal. The bond offers principal protection with returns linked to carbon credit revenues and project performance, supporting a 50,000-hectare restoration initiative expected to create around 11,000 jobs while leveraging private capital and aligning investor returns with environmental outcomes.

M&A

🔋 Allianz Global Investors acquired a 51% stake in German battery storage platform GESI, expanding its investments in large-scale energy storage. GESI is developing major projects with 2.6 GW grid capacity, set to be operational by 2029, helping integrate renewables and reduce curtailment. The deal marks AllianzGI’s second recent storage investment, reinforcing its focus on grid stability and energy system resilience.

🌱 Mangrove Systems acquired operating assets from Grain Ecosystem to expand its biochar-focused carbon removal platform. The deal brings Grain’s customer base onto Mangrove’s dMRV system, offering AI-driven carbon accounting, reporting, and certification support. The move strengthens Mangrove’s position in the growing biochar market, a scalable carbon removal solution with long-term storage and agricultural benefits.

Startup funding rounds

⚡ Decade Energy raised €22 million to scale its electric truck infrastructure platform and expand across Europe. The company provides integrated energy solutions for logistics depots, including charging, battery storage, and optimization software, addressing power access bottlenecks in fleet electrification.

⚡️ Exergy3 raised £10 million to scale its technology that converts surplus renewable electricity into high-temperature industrial heat. The system captures excess power, such as curtailed wind and stores it as heat up to 1,200°C, enabling low-carbon, cost-efficient energy for industry. Funding will support manufacturing scale-up, team expansion, and broader deployment across industrial sites.

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