What's Happening in Sustainability & ESG (28.04 - 04.04) 🌎

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:

• Investment in clean energy funds is accelerating at its fastest pace in five years ⚡️

• The EU confirmed it will not reopen the EUDR and will keep the December compliance deadline, while introducing simplifications and clarifications 🇪🇺

• The SBTi updated its rules to allow companies to set significantly less ambitious near-term emissions reduction targets 📑

• GRI and CDP released updated mapping to better align climate and energy disclosures 📑

• Octopus Energy is investing over $500 million into US carbon removal projects 🌳

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

⚡️ Investors are pouring into clean energy funds at the fastest pace in five years, with over $3 billion flowing into renewable ETFs in April, as the Iran war drives a global shift toward energy security. The surge reflects a shift from climate-driven investing to a focus on reducing reliance on volatile oil and gas markets, with rising energy prices strengthening the case for renewables and electrification.

Clean energy stocks have also outperformed oil in recent weeks, with companies like Ørsted, Nordex, and Siemens Energy posting strong gains. Analysts say geopolitical instability is accelerating a multi-year investment cycle in energy infrastructure, with Europe focused on energy independence and the US driven by growing power demand from AI and data centers.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 The European Commission published its simplification review of the EU Deforestation Regulation (EUDR), confirming it will not reopen the rules and will keep the December compliance deadline, while introducing targeted simplifications and clarifications. The package includes updated guidance, FAQs, a draft delegated act on product scope, and changes to the Information System, aimed at providing clarity for companies, Member States, and other stakeholders.

The Commission said simplification measures will reduce compliance costs by around 75%, supported by easier rules for small operators, clearer supply chain obligations, and trade facilitation tools. The draft scope update adds products like soluble coffee and palm oil derivatives, while excluding items such as leather and retreaded tyres.

📑 The Science Based Targets initiative (SBTi) has quietly updated its rules to allow companies to set significantly less ambitious near-term emissions reduction targets, easing requirements that many had found unrealistically steep. Previously, companies were required to cut Scope 1 and 2 emissions by at least 4.2% annually, translating to roughly a 42% reduction by 2030, but under the new approach, some targets could fall to around 21%, with Scope 3 reductions also lowered.

The change is expected to bring more companies back into the SBTi process, but it has raised concerns about alignment with climate science, particularly the 1.5°C pathway requiring a 43% global emissions cut by 2030. While SBTi said the overall level of ambition and the 2050 net zero goal remain unchanged, the update means companies could have higher emissions earlier in their transition, potentially making the 1.5°C target harder to achieve. You can find the announcement by SBTi here.

📑 GRI and CDP released updated mapping to better align climate and energy disclosures, helping companies streamline reporting and improve data consistency. The new tool connects GRI climate standards with CDP’s 2026 questionnaire, reducing duplication and expanding coverage of key areas like emissions and actions. The update responds to growing demand for more efficient, comparable reporting and forms part of the ongoing collaboration between the two organizations.

📑 PwC found that 82% of companies are maintaining or accelerating their climate goals, with most progressing toward decarbonization targets despite political pressure. The report shows 69% of firms are on track for Scope 1 and 2 reductions, while Scope 3 progress is improving but lags behind. Companies are increasingly focusing on supply chains, with stronger supplier engagement and transparency, although challenges such as policy uncertainty, energy competition, and evolving Scope 2 rules could impact future progress.

🇬🇧 The UK’s Financial Conduct Authority (FCA) invited ESG ratings providers to pilot a new reporting regime aimed at improving transparency and shaping future regulation. The pilot will test proposed disclosure requirements, including methodologies, rating objectives, and ESG factors assessed, to ensure they are practical and proportionate, with final rules expected in Q4 2026 and implementation from June 2028.

WHAT ARE COMPANIES DOING?

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

🌳 Octopus Energy is investing over $500 million into US carbon removal projects, including a $13 million stake in reforestation startup Living Carbon. The partnership will fund large-scale afforestation on degraded land and includes a $13 million equity stake in Living Carbon’s carbon removal business.

There have also been several carbon removal deals over the past week:

NTT Data agreed to buy carbon removal credits from Climeworks, marking the first deal between the carbon removal startup and a major AI infrastructure company. The agreement, expected to deliver a few hundred thousand tons over a decade, will help the data center giant offset emissions as it targets near-zero operational emissions by 2030 and broader reductions by 2040.

Climate Impact Partners and Aviva Investors launched the Llanos Vivos project in Colombia to generate carbon removal credits through large-scale afforestation and land restoration. The initiative will restore up to 13,600 hectares of degraded grassland into a biodiverse forest, with an initial phase expected to remove over 2.4 million tons of CO₂, and more than six million tons over its lifetime.

Boeing purchased 20,000 tons of durable carbon removal credits through Supercritical, sourcing projects across biochar and enhanced rock weathering in developing countries. The portfolio, selected from over 200 projects using a scientific vetting framework, includes suppliers in Brazil, Bolivia, Namibia, and India. The credits will be used to address residual Scope 3 emissions from business travel.

Deep Sky and Engie partnered on carbon removal procurement, research, and market development, including Engie’s purchase of up to 15,000 DAC credits. The collaboration will focus on optimizing energy integration for direct air capture systems to improve efficiency and reduce costs.

⚡️ Copenhagen Infrastructure Partners launched Perigus Energy following its €1.44 billion acquisition of Ørsted’s European onshore business. The new platform will develop and operate renewable projects across key European markets, with over 800 MW of assets and a multi-gigawatt pipeline in wind, solar, and battery storage.

Solutions

📊 IBM announced the general availability of the IBM Envizi Emissions API, enabling companies to integrate GHG Protocol-aligned emissions calculations into existing systems and workflows. The tool provides Scope 1, 2 and 3 calculations and access to global emissions factor datasets, addressing growing demand for scalable, real-time emissions insights without requiring companies to build and maintain complex calculation methodologies in-house.

IBM also launched Envizi Emissions Calculations in Excel, a solution to help sustainability teams calculate GHG emissions in spreadsheets with improved consistency and auditability. The tool embeds standardized calculation logic and emissions factors directly into Excel, with prebuilt templates and AI-based data mapping to reduce manual work. Designed for teams early in their carbon accounting journey, it provides a practical pathway from flexible spreadsheet-based calculations to more structured, scalable, and auditable enterprise emissions management.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 New York City’s pension funds said BlackRock and Fidelity remain “insufficiently aligned” with their net zero expectations, raising the possibility of re-bidding or terminating mandates. The ~$300 billion system reiterated requirements for asset managers to submit aligned net zero plans, while reporting strong progress overall, including a nearly 50% reduction in portfolio emissions since 2019 and a 10.3% return in 2025.

In related news, Scotiabank and RBC have retired their 2030 financed emissions reduction targets for key carbon-intensive sectors, citing uncertainty around policy, energy demand, and technology development. Scotiabank also dropped its 2050 net-zero financed emissions goal, while RBC maintained its 2050 ambition but said some interim targets were no longer achievable, marking the latest pullback by Canadian banks amid a more challenging political and regulatory environment.

📑 A group of 23 US State Attorneys General warned Moody’s, S&P Global Ratings, and Fitch over their use of ESG factors in credit ratings, raising potential legal concerns and threatening enforcement action. The AGs alleged ESG-driven downgrades of fossil fuel companies and states, citing conflicts of interest and regulatory violations, and called on the agencies to justify or reverse such actions, withdraw from ESG commitments, and revise methodologies.

📈 Nordea Asset Management has been awarded a nearly €1 billion ESG-focused European covered bond mandate by ABN AMRO Investment Solutions. The Article 8 SFDR strategy will apply Nordea’s sustainability methodology, including exclusions and responsible investment integration across research and portfolio construction, and will be managed by its Fixed Income Rates Team, as covered bonds gain traction as a stable alternative to government debt.

🏦 The Asian Development Bank launched a new financing facility to support critical minerals supply chains and manufacturing across the Asia-Pacific. The initiative aims to help countries move beyond mining into processing, manufacturing, and recycling, backed by grant funding for early-stage projects and catalytic finance to mobilize private capital.

📈 Kompas VC closed its second fund at €160 million to invest in early-stage startups focused on industrial technologies driving productivity, resilience and decarbonization. The fund will back up to 25 companies across sectors like manufacturing, energy and the built environment, targeting areas such as industrial AI, robotics and cybersecurity, with seven investments already made.

M&A

⚡️ Arcadia acquired ENGIE Impact to create a unified, AI-powered energy management platform for enterprises. The deal combines Arcadia’s data and analytics capabilities with ENGIE Impact’s global scale and expertise, enabling companies to manage the full lifecycle of utility data from bill payment to energy procurement.

⚡️ Blackstone will invest up to €2 billion to acquire a significant stake in Eurowind Energy, aiming to accelerate renewable energy development across Europe. The funding will support scaling wind, solar, battery storage, and Power-to-X projects, enabling the company to expand its portfolio and take on larger projects.

📊 Energi.AI acquired sustainability advisory firm CEMAsys to expand its platform capabilities, client base, and international growth. The deal combines Energi.AI’s AI-driven climate data and reporting technology with CEMAsys’ ESG advisory and software solutions, reflecting a broader shift from manual reporting to automated, decision-grade sustainability data.

Startup funding rounds

⚡️ Solaria Energia raised €300 million through a 10% equity sale to expand its renewable energy, storage, and data center platform across Europe. The funding will support its multi-gigawatt growth pipeline, accelerate battery storage deployment, and scale its digital infrastructure strategy.

🔋 CMBlu Energy reached unicorn status after a €50 million Series C initial close. The company’s SolidFlow technology, a non-lithium, multi-hour storage system using water-based electrolytes and recyclable materials, is designed to deliver 10+ hours of reliable power for data centers and utilities.

🚴🏼‍♂️ London-based e-bike operator Forest raised €31 million, bringing its Series B total to €46 million. Forest, which operates zero-emission bikes powered by renewable energy, now serves 1.5 million users and delivers around two million rides per month.

⚡️ ROSI secured over €20 million to scale its photovoltaic panel recycling operations across Europe. The funding will support new facilities, including a large-scale plant in Spain, enabling recovery of high-purity materials such as silicon and silver from end-of-life solar panels.

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