What's Happening in Sustainability & ESG (Week Recap 01.04 - 07.04) 🌎

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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. 🍀

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In this edition, we’ll cover:

• Tariffs’ impact on climate and sustainability 🌎

• GHG emissions in sectors covered by the EU ETS fell 5% in 2024 🇪🇺

• Over 80% of large EU-based companies now link senior executive pay to sustainability performance, compared to 44% in the US 📊

• China’s Ministry of Finance issued the country’s first-ever sovereign green bond 🇨🇳

• and other news 🌍

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇺🇸 President Trump’s newly proposed tariff regime is shaping up to be one of the most disruptive developments for clean energy and climate-aligned industry this year. Countries like China and Vietnam—key to solar, battery, and wind supply chains—are hit hard, resulting in higher costs for imported clean energy components at a time when the US grid urgently needs to expand. Sectors like battery storage, solar, and transformers are already warning of price hikes and deployment delays, and utility-scale projects are starting to feel the pressure.

Still, some see unexpected opportunity emerging from the upheaval. Felipe Daguila, CEO of carbon-management platform Terrascope, sees potential in the forced reshaping of global supply chains, suggesting that nearshoring and supplier diversification could reduce Scope 3 emissions and foster more resilient, low-carbon partnerships—particularly in packaging and renewable energy sourcing. At the same time, US ranchers have expressed support for Trump’s tariffs, especially the 10% duties on beef from Brazil, Australia, and New Zealand, hoping this will boost domestic cattle value while helping to reduce deforestation and shipping emissions.

However, the near-term outlook is more turbulent. Restructuring supply chains is a costly, long-term endeavor, and key sectors like solar manufacturing are expected to suffer in the short run. As US clean energy companies face rising input prices and the global market braces for a surge of low-cost Chinese goods, many fear that Trump’s tariffs will raise renewable energy costs and stall decarbonization efforts—at least in the immediate future.

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MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 Greenhouse gas emissions in sectors covered by the EU Emissions Trading System (ETS) fell 5% in 2024, reaching nearly a 50% reduction compared to 2005 levels, according to a new European Commission report. The decline—driven largely by a 12% drop in power sector emissions—puts the ETS on track to meet its 2030 target of a 62% reduction. The shift was powered by increased renewable and nuclear electricity generation, with solar output rising 19% and coal-fired generation falling 15%.

📑 A new KPMG report reveals that over 80% of large EU-based companies now link senior executive pay to sustainability performance—nearly double the 44% rate in the US, which ranks lowest among the countries surveyed. The study, based on 2023 reports from 375 major companies across 15 countries, found that US firms are also less likely to align sustainability-related pay targets with material business issues and tend to focus on short-term goals, unlike European peers who more frequently integrate long-term metrics. Common targets include emissions reductions, renewable energy use, gender equity, and workplace safety.

🛩️ The International Air Transport Association (IATA) launched a global Sustainable Aviation Fuel (SAF) registry to streamline and standardize SAF usage tracking across the aviation sector. The registry aims to address key challenges including double counting, supply shortages, and emissions verification by recording SAF transactions and environmental attributes throughout the value chain.

🌳 African Development Bank President Akinwumi Adesina criticized global carbon markets for severely undervaluing Africa’s natural capital, calling current carbon credit pricing “carbon grabs” that echo colonial-era land grabs. He noted that while European carbon permits can reach €200 per tonne, African forest credits are sold for as little as $3, offering no real returns to host countries despite their environmental contributions.

WHAT ARE COMPANIES DOING?

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

🛩️ Microsoft and International Airlines Group (IAG) signed the largest-ever sustainable aviation fuel (SAF) deal focused on Scope 3 emissions, aiming to reduce the carbon footprint of corporate air travel and air freight. Under the agreement, Microsoft will purchase 14,700 metric tons of SAF, which will be supplied by IAG airlines including British Airways, Iberia, and Aer Lingus over the next three years.

Microsoft also partnered with Terradot, a startup using Enhanced Rock Weathering (ERW), to purchase 12,000 tons of carbon removal credits from 2026 to 2029 and fund accompanying research. Terradot accelerates the natural weathering process by applying crushed basalt rock on tropical farmland in Brazil, simultaneously sequestering CO₂ and improving soil health. Microsoft’s support extends beyond credit purchases—it will also help finance improved monitoring technologies to make ERW more measurable, scalable, and cost-effective.

🟢 Frontier, a carbon removal coalition led by Stripe, Alphabet, and others, signed a $53 million agreement with Hafslund Oslo Celsio to remove 100,000 tonnes of CO₂ from waste incineration in Norway. The project retrofits an existing waste-to-energy plant in Oslo with carbon capture and storage (CCS) technology, making it the first facility of its kind to deliver permanent carbon removals. The captured carbon will be stored under the North Sea through Norway’s Northern Lights project. Beyond mitigating emissions from incinerated municipal waste, the project serves as a replicable model for hundreds of similar facilities worldwide.

🛢️ BP disbanded its low-carbon mobility team, citing slow progress and lack of commercial viability for hydrogen, LNG, and other low-emission transport solutions. The move affects a small group within its customers & products division and follows BP’s broader pivot toward oil and gas, including a 30% increase in fossil fuel investment and reduced funding for renewables. While the company will integrate some of the team’s activities into existing operations, the decision signals a deprioritization of low-carbon transport initiatives. BP Pulse, its EV charging business, will remain unaffected and continues expanding in key global markets.

🧴 Unilever acquired Wild, a fast-growing personal care startup known for its refillable, plastic-free deodorants and eco-friendly packaging. Founded in 2020, Wild has rapidly expanded across Europe, offering plant-based products including lip balm, body wash, and hand soap in compostable or reusable formats. Wild’s subscription-based model and strong brand appeal to younger, environmentally conscious consumers, giving Unilever a foothold in the zero-waste personal care trend.

📊 Schneider Electric partnered with sustainability software firm One Click LCA to provide environmental data on over 50,000 electrical products to professionals in the architecture, engineering, and construction (AEC) sector. Through the collaboration, Schneider will make its Environmental Product Declarations (EPDs) accessible via One Click LCA’s AI-powered platform, enabling more accurate life-cycle assessments and carbon-conscious design decisions. The move addresses a major data gap in assessing the embodied carbon of mechanical, electrical, and plumbing (MEP) systems—an often-overlooked source of emissions in construction. By integrating EPDs into early project planning, AEC professionals can better evaluate the environmental impact of electrification choices.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🇨🇳 China’s Ministry of Finance issued the country’s first-ever sovereign green bond, raising RMB 6 billion (USD $825 million) to fund projects focused on climate mitigation, biodiversity conservation, and environmental restoration. The bonds, with 3- and 5-year maturities, debuted on the London Stock Exchange—marking both China’s inaugural sovereign green issuance and its first listing on an international market. The offering was heavily oversubscribed, attracting nearly RMB 47 billion in bids, underscoring strong investor demand. Issued under China’s new Sovereign Green Bond Framework, eligible projects include clean transport, water management, marine ecosystem protection, and pollution control.

🔴 Deutsche Bank’s asset management arm DWS has been fined €25 million ($27 million) by Frankfurt prosecutors for misleading investors about its sustainable investing practices, concluding a greenwashing investigation that began in 2021. The case was sparked by whistleblower claims from former sustainability chief Desiree Fixler, who alleged that DWS exaggerated its ESG integration in investment decisions. Authorities found that DWS falsely positioned itself as an ESG leader while still undergoing internal transformation, and that its public claims “did not correspond to reality.” In 2023, DWS also paid $19 million to settle a related US SEC probe—the largest greenwashing penalty ever levied against an asset manager. DWS acknowledged its past “exuberant” marketing and said it has since improved internal controls, adding that the fine was already provisioned and won’t impact Q1 2025 results.

🏦 UBS removed restrictions on conventional weapons in some sustainability-branded funds, in a policy shift reflecting rising defense investment amid geopolitical conflict. The bank maintains exclusions on controversial arms but now allows exposure to firms generating over 10% from standard weapons. The change mirrors a trend across Europe as fund managers reassess ESG definitions. UBS emphasized transparency and said investors can still opt for stricter exclusions.

⚡️ TotalEnergies acquired multiple renewable portfolios across three continents, including the German-based VSB Group with a 15 GW pipeline, SN Power’s hydroelectric assets in Uganda, Rwanda, and Malawi, and the 184 MW Big Sky Solar project in Canada. The company also signed a deal with RES to acquire 800+ MW of wind and solar projects.

💧 Goldman Sachs’ sustainable investing division acquired Atlas-SSI, a US-based provider of water intake and filtration solutions for industrial and energy clients. Atlas-SSI’s technology reduces environmental harm from water withdrawals and supports regulatory compliance for clients in energy, power, and manufacturing.

📊 Asset managers Mirova, Robeco, and Edmond de Rothschild AM, along with sustainability consultancies I Care by BearingPoint and BCG’s Quantis, launched the Avoided Emissions Platform (AEP), a new tool designed to help investors and companies assess and compare the decarbonization impact of various climate solutions. The platform addresses the lack of transparent, standardized data to evaluate the growing array of low-carbon alternatives, a gap that has hindered the redirection of capital toward decarbonization-enabling businesses.

Funding rounds:

📊 Paris-based fintech WeeFin raised $27 million to enhance and expand its ESG data and analytics platform, designed specifically for banks, asset managers, and insurers. The platform helps financial institutions collect, analyze, and report ESG data in line with international frameworks like SFDR, CSRD, and the EU Taxonomy.

🌳 Reforestation startup Mombak secured R$100 million (~$17.8 million) in funding. Mombak buys or partners on degraded land in the Amazon to replant native trees, aiming to restore biodiversity and generate high-quality carbon credits. The startup already manages 45,000 acre and expects to plant 8 million trees by June. It has $150 million in carbon offtake deals with major buyers like Microsoft, Google, and McLaren, with plans to significantly expand.

🟢 Swiss startup Bloom Biorenewables secured $15 million in Series A funding to scale its proprietary technology that converts plant waste into sustainable alternatives to fossil-based chemicals and plastics. The company’s approach enables the production of bio-based materials for packaging, textiles, and cosmetics, offering a lower-carbon alternative to petroleum-derived inputs.

🏭 Industrial decarbonization startup Zero Industrial raised $10 million in seed funding to accelerate clean heat technology for the manufacturing sector. The company’s proprietary platform electrifies high-temperature industrial processes that traditionally rely on fossil fuels.

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