What's Happening in Sustainability & ESG (21.09 - 28.09) 🌎

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 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.

In this edition, we’ll cover:

• New York Climate Week once again felt increasingly like AI and energy week 🇺🇸

• EU: final revised ESRS published, free carbon allowances increased and anti-greenwashing rules take effect 🇪🇺

• ISO Net-Zero Standard sent back for revision; ISO and UNDP also launch new SDG Standard 📑

• Glass Lewis and Clarity AI announced a merger while osapiens and ERM formed a strategic alliance 🤝🏻

• J.P. Morgan, Crédit Agricole and Mombak expand forestry investment 🌲

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🗽 New York Climate Week once again felt increasingly like AI and energy week, with data centers dominating discussions about electricity demand, grid capacity and community concerns, according to Currence’s recap. The mood was described as energetic but uneasy: nearly every conversation acknowledged mounting climate risks before turning to the practical challenge of supplying power for the AI boom. Companies faced growing pressure to fund the infrastructure they require, limit costs for consumers and create clear benefits for host communities. Climate technologies were often presented through the language of energy security and resilience, while investors described stronger deal activity and a pace that occasionally felt reminiscent of 2021. Carbon received less attention onstage, although decarbonization technologies remained visible across demonstrations and events. Adaptation also appeared throughout the week as businesses, regulators and insurers focused more closely on extreme weather, infrastructure resilience and the physical risks facing data centers and other major projects.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 The European Commission published the final revised ESRS and the voluntary standard for smaller companies in the EU’s Official Journal. The changes complete the ‘simplification’ process under the Omnibus initiative, substantially reducing reporting datapoints and limiting information requests to smaller businesses. The regulation enters into force on November 10, 2026, applying to financial years beginning January 1, 2027.

EU member states also agreed to increase free carbon allowances for energy-intensive sectors for 2026–2030, using around 88 million allowances worth an estimated €6 billion in cost savings, plus another 33 million previously unallocated allowances. The Council said the targeted ETS revision is intended to protect sectors covered by heat and fuel benchmarks from carbon leakage and preserve competitiveness during the transition. Negotiations with the European Parliament will begin once Parliament adopts its position.

Additionally, the European Commission proposed an efficiency labelling scheme requiring data centres to disclose how effectively they use energy and water. Operators would also report local water stress and capabilities such as supplying waste heat to nearby users. The proposal sets no consumption limits but could precede mandatory efficiency standards, as Europe expands AI infrastructure. The rules will take effect unless EU countries or lawmakers object within two months.

Meanwhile, new EU rules entered into application to protect consumers from misleading environmental claims and hidden product obsolescence. The directive prohibits unsupported terms such as “environmentally friendly,” restricts emissions claims based on carbon offsets, and permits sustainability labels only when supported by official certification schemes or public authorities. It also strengthens product-durability information and requires companies promoting future climate targets to publish detailed, time-bound implementation plans verified by independent experts.

📑 ISO’s proposed corporate net-zero standard failed to secure sufficient approval from national standards bodies and will undergo further review. The organisation received nearly 5,000 comments on its draft ISO 14060 standard, with 88 countries participating in the ballot. Its committee must now consider the feedback before determining how to proceed, with no revised timetable announced. Sources familiar with the negotiations suggested opposition from fossil-fuel-producing countries contributed to the outcome, while others wanted more time to assess provisions including carbon credit rules.

In related news, ISO and UNDP launched ISO/UNDP 53001, the first international management-system standard designed to embed the UN Sustainable Development Goals into organizational strategy, governance and operations. Applicable across sectors and organization sizes, the standard provides a structured framework for identifying impacts, setting objectives, measuring progress and strengthening accountability.

🇩🇪 Germany released a roadmap to end coal, oil and natural gas use by 2045, linking decarbonisation with energy security and economic resilience. Priorities include raising renewable electricity’s share to 80% by 2030, phasing out coal by 2038 and expanding grids, electric mobility, heat pumps and district heating. The strategy also supports industrial electrification and a transition to green hydrogen in gas-fired power generation.

🇨🇦 Canada announced plans to explore a framework that would enable companies to participate in international carbon markets under Article 6 of the Paris Agreement. The initiative would support cross-border transfers of verified emissions reductions and removals while maintaining rigorous accounting and environmental integrity. Industry group Carbon Removal Canada said announced projects awaiting construction represent approximately 11 million tonnes of removal capacity. The government aims to attract investment, scale domestic climate technologies and create export opportunities.

WHAT ARE COMPANIES DOING?

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

🚚 An alliance including Microsoft and PepsiCo supported an order for 2,500 electric heavy-duty trucks, described as the largest in US history. The ZET SCALE programme pooled freight demand to secure more competitive pricing, selecting Tesla as the primary manufacturer. Trucks will be leased and deployed across ten freight hubs, reducing fleet owners’ financial risks. The alliance aims to expand the model to at least 10,000 vehicles.

👕 Levi Strauss, Marks & Spencer and Schneider Electric’s SE Advisory Services launched the Fashion Renewable Collaborative to accelerate clean electricity adoption across fashion supply chains. Suppliers will receive training, market guidance and procurement support covering renewable power agreements, certificates, on-site generation and storage.

🌽 ADM announced plans to enter the voluntary carbon market using credits from its Nebraska corn processing facility, with annual capture capacity exceeding 800,000 tons. The plant captures biogenic CO₂ from ethanol fermentation for transport and underground storage in Wyoming through a partnership with Tallgrass. Puro.earth is reviewing the project under its geological storage methodology, with ADM planning a 15-year crediting period once certification and verification are completed.

♻️ Meta signed a multiyear agreement to purchase environmental attribute certificates from MacroCycle’s plastic recycling operations, supporting its first US production plant. The facility is expected to produce 5,000 tonnes of recycled PET annually. MacroCycle says its process converts contaminated plastic waste into virgin-quality material using 80% less energy than fossil-based PET production.

Solutions

📊 Glass Lewis and Clarity AI announced a merger, bringing sustainability analytics, investment research and stewardship capabilities into an integrated platform. The companies aim to connect investment decisions more closely with engagement and proxy voting, while establishing a sustainability, data and AI innovation centre in Madrid. The transaction strengthens their European offering as institutional investors seek integrated services and US proxy advisers face growing political pressure.

🤝 Osapiens and ERM formed a strategic alliance combining sustainability software and advisory services for North American clients. The offering pairs the osapiens HUB platform for compliance and supplier intelligence with ERM’s consulting and implementation capabilities. It aims to help companies turn sustainability and supply chain data into better decisions, stronger resilience and operational improvements.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🌲 J.P. Morgan Natural Capital and Paraguay launched a sustainable forestry platform backed by approximately $200 million in investment. Developed with Grupo Robinson, the initiative will establish commercial forests, restore native woodland and generate value through sustainable timber, carbon credits and wood products, with capital deployment expected in early 2027. It also aims to create rural employment and expand local timber processing for domestic and export markets.

Crédit Agricole also launched Crédit Agricole Capital Naturel to finance and support the preservation and restoration of natural resources, initially focusing on forests. The division will combine advisory, financing, insurance, investment and project-structuring capabilities across the group. Crédit Agricole is also negotiating to acquire a majority stake in EcoTree, while Amundi launched the €200 million Arbora Nova fund to support the restoration and sustainable development of European forest ecosystems.

In related news, Mombak completed the first close of its second Amazon reforestation fund and signed a multiyear carbon removal purchase agreement with Salesforce. The fund targets $150 million and will access a roughly $39 million credit line through Brazil’s Climate Fund. Building on nearly 15 million native trees planted through its first fund, Mombak expects demand to expand beyond technology companies as restoration costs fall and interest grows across industrial sectors.

🌦️ Schroders launched a framework assessing investment opportunities across 102 climate adaptation activities, developed in collaboration with CalPERS. Covering infrastructure, technology, products and services, it distinguishes solutions that generate economic benefits from those offering commercially viable business models and cash flows.

🌱 Pulse Fund closed its inaugural fund with $63 million to invest in early-stage climate companies across energy, infrastructure, food and agriculture, and mobility. Founded by Tenzin Seldon, the firm’s portfolio includes Mast Reforestation, clean-fuels developer Twelve, electric mobility company Endera Motors and engineered-wood producer InventWood.

Funding rounds

🌋 Mazama Energy raised $135 million to accelerate the commercial development of superhot rock geothermal, following its record-setting engineered geothermal system in Oregon. The company is now drilling toward 400°C, where wells could deliver up to 10 times the power of conventional geothermal wells while using 75% less water and 80% fewer wells.

♨️ Kanin Energy secured up to $100 million in equity financing to expand projects converting industrial waste heat into electricity across North America. Kanin finances, builds, and operates installations for industrial customers, generating power without additional fuel combustion while aiming to lower electricity costs, improve reliability, and reduce emissions.

🔌 Morgan Stanley Investment Management led a €49 million financing round for Amber Electric to expand its household battery automation technology internationally. Amber’s AI software combines wholesale electricity prices with forecasts of solar generation and household consumption to optimise energy storage and use.

🌱 Vaulted Deep secured a $35 million debt facility to expand its carbon removal infrastructure across the US. Funding will support new disposal sites and technology that accelerates site selection, permitting, and operations.

⚡️ Planted Solar raised $31.8 million to expand its robotic solar-construction platform and accelerate deployment with smaller crews and less land. Its system combines planning software, terrain-following arrays, and field robotics, with deployment expected to reach 100 MW in 2026.

⚡️ Metris raised $5 million in seed funding to expand its renewable energy asset management platform and European operations. The software brings together asset data, performance monitoring, revenues and operational workflows, helping owners manage portfolios currently spread across spreadsheets and disconnected systems.

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