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  • What's Happening in Sustainability & ESG (Week Recap 03.12 - 09.12) 🌎

What's Happening in Sustainability & ESG (Week Recap 03.12 - 09.12) 🌎

Key barriers to corporate sustainability progress identified in a new survey, and other news

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:

A new ERM survey identifies the key barriers to corporate sustainability progress 🔴

Only 4% of 2024-reporting companies are ready to publish a CSRD-compliant report, according to a PwC survey 📑

 EU agrees to delay deforestation law but won't soften the rules 🇪🇺

Goldman Sachs quits global climate coalition for banks, becoming the first major bank to leave 🏦

Coca-Cola scaled back some of its environmental goals 🥤

and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🔴 A new ERM survey identified key barriers to corporate sustainability progress, including a lack of financial incentives tied to sustainability performance within companies, a sustainability engagement gap between the C-suite and managers, and low levels of professional involvement reported by employees working in operations and infrastructure, which are crucial business functions for integrating climate, nature and social goals into business operations. While C-suite executives are more optimistic about progress than managers, only 42% of operational staff feel significantly involved in sustainability efforts. Companies report higher progress on equity and social issues (57%) than climate (47%) and nature (45%).

Among the top solutions to speed up sustainability progress include sustainability-linked financial incentives, better staff training, and operational integration. ERM recommends tying significant portions of compensation to sustainability goals, creating tailored training programs, equipping managers with tools and data, and fostering cross-functional collaboration to embed sustainability into business operations. By addressing these barriers, companies can accelerate progress, seize commercial opportunities, and build resilience, according to the sustainability consultancy.

📑 Another PwC survey found that less than half (42%) of companies required to report under the EU’s CSRD in 2024 feel fully confident in their ability to meet the expanded sustainability reporting requirements, which affect over 50,000 companies. Key findings include:

  • Only 4% of 2024-reporting companies are ready to publish a CSRD-compliant report, while 22% are still understanding the requirements.

  • Confidence levels drop further for companies reporting in 2025, with only 14% feeling fully prepared.

  • Over half of 2024-reporting companies expect CSRD to materially affect value creation, citing impacts on financing conditions (47%), employee retention (42%), and company valuation (36%).

  • Most companies plan significant investments in technology, training, and human resources, with 90% implementing or planning technology solutions, though few currently have systems in place.

  • Data quality is a major concern for 2024-reporting companies, while smaller 2025-reporting companies highlight resource constraints.

PwC emphasized that CSRD places sustainability on par with financial reporting, requiring businesses to integrate sustainability into strategic decision-making and invest in advanced technology and reporting systems to ensure compliance.

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MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🏦 Goldman Sachs exited the Net-Zero Banking Alliance (NZBA), becoming the first major bank to leave the UN-backed coalition aimed at aligning financing activities with net-zero goals by 2050. While reaffirming its commitment to net-zero targets and sector-specific interim goals, Goldman cited its capabilities and focus on meeting elevated sustainability standards and regulatory requirements. Founded in 2021, the NZBA includes 145 banks with $74 trillion in assets, committing members to reduce financed emissions and align capital markets activities with net-zero pathways. Goldman’s departure reflects growing political pressure on net-zero initiatives, particularly in the US, where financial institutions face scrutiny from anti-ESG policymakers. Despite leaving the NZBA, Goldman stated it has made significant progress on its sustainability goals and plans to expand its targets to more sectors. This follows the firm’s earlier withdrawal from Climate Action 100+, another climate-focused initiative targeted by anti-ESG advocates.

🇪🇺 The European Parliament and Council agreed to delay the implementation of the EU Deforestation Regulation (EUDR) by 12 months, pushing enforcement to December 2025 for large companies and June 2026 for small and micro-enterprises. The EUDR aims to prevent deforestation-linked products from entering or leaving EU markets through mandatory due diligence, including tracing products to their production plots to ensure compliance with anti-deforestation and legal standards. Proposals to ease the rules, such as a “no risk” category exempting low-risk countries, were rejected. The delay responds to concerns about preparedness among global and EU stakeholders, with the Commission describing it as a balanced solution to ensure smooth and effective implementation without altering the regulation’s core objective of minimizing the EU’s deforestation impact. The European Commission also announced a €4.6 billion investment in decarbonization and clean hydrogen projects, funded by the EU Emissions Trading System (EU ETS). The initiative includes €3.2 billion for net-zero technologies, €1 billion for EV battery cell manufacturing, and €1.2 billion through the European Hydrogen Bank to boost renewable hydrogen production.

🇺🇸 The Biden administration’s efforts to advance climate initiatives under the Inflation Reduction Act (IRA) face uncertainty as key programs encounter delays and political challenges. Guidance for clean fuel production tax credits, intended to drive 3 billion gallons of sustainable aviation fuel (SAF) by 2030, will not be finalized before Biden leaves office in January, delaying the program. The Treasury Department expects to issue guidance by January 20 to enable credit access by 2025, but disputes between agriculture lobbyists and environmentalists over climate goals and President-elect Trump’s pledge to repeal the IRA pose significant hurdles. However, the administration has also awarded over $100 billion in IRA grants, securing long-term investments in renewable energy projects like wind, solar, hydrogen, and carbon capture. These funds, which include electrifying federal buildings and rural energy grants, aim to lock in progress despite the upcoming political transition.

WHAT ARE COMPANIES DOING?

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

🥤 Coca-Cola scaled back its environmental goals, reducing its target for recycled materials in packaging to 35–40% by 2035 from its previous 50% by 2030 goal and lowering its recycling target to 70–75% of bottles and cans by 2035, instead of collecting one for each sold by 2030. The company also dropped its commitment to sell 25% of beverages in reusable containers by 2030 and to sustainably source all priority agricultural ingredients. Additionally, Coca-Cola adjusted its emissions reduction goal to align with a 1.5°C pathway by 2035, starting from a 2019 baseline, without specifying a percentage cut. These moves have drawn criticism from environmentalists, who call the changes “short-sighted” and warn they could exacerbate plastic pollution. Coca-Cola’s decisions coincide with broader struggles over global plastic pollution and growing litigation risks for beverage companies regarding their plastic outputs.

⚡️ bp and JERA, Japan’s largest power company, announced the launch of JERA Nex bp, a 50-50 joint venture combining their offshore wind assets, creating one of the largest global offshore wind developers with a potential net capacity of 13 GW. The companies have pledged up to $5.8 billion in capital funding for the venture by 2030. Based in London, the JV will include assets from bp’s and JERA’s portfolios, totaling 1 GW of generating capacity, 7.5 GW in development projects, and secured leases for an additional 4.5 GW. Completion is expected by Q3 2025.

⚡️ Meta announced plans to issue RFPs to US nuclear energy developers for 1-4 GW of new nuclear capacity, targeting delivery in the early 2030s. This move aims to address the growing energy demands driven by AI expansion while supporting its net-zero goals. Meta joins tech peers like Google, Microsoft, and Amazon, which have recently invested in nuclear energy to meet rising electricity needs for AI-driven data centers while minimizing emissions. While Meta has focused on solar, wind, and battery storage, the company now views nuclear as a source of reliable baseload power to sustain grid growth and decarbonization. Meta, which has maintained net-zero operations since 2020, acknowledges the challenge of achieving net-zero across its value chain by 2030 due to increasing energy demands. Through these RFPs, the company seeks to accelerate nuclear deployment and reduce costs, aligning with its sustainability and innovation objectives.

🟢 Saudi Aramco, SLB, and Linde signed an agreement to build a carbon capture and storage (CCS) project in Jubail, Saudi Arabia. Aramco will hold a 60% stake, with SLB and Linde each owning 20%. Phase one, set to be completed by 2027, will capture and store up to 9 million metric tons of CO2 annually. The captured CO2 will be transported via pipelines and stored underground in a saline aquifer.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

A Heirloom engineer at the company’s first commercial DAC facility | Source: Heirloom

🟢 Carbon removal technology company Heirloom raised $150 million in Series B funding to scale its Direct Air Capture (DAC) technology, which extracts CO2 directly from the atmosphere using limestone and renewable energy. Heirloom plans to use the funds to lower costs, expand projects, and access infrastructure capital. The company’s clients include Microsoft, Stripe, and Shopify.

📈 BNP Paribas Asset Management (BNPP AM) launched the BNP Paribas Low Carbon Transition Infra Equity Fund I, targeting €750 million to invest in European low-carbon infrastructure projects focused on clean energy, sustainable mobility, and the circular economy. Supported by €400 million in anchor commitments from BNP Paribas Group, the fund aims to build a portfolio of 8–12 investments, including sectors such as batteries, hydrogen, and carbon capture. The fund has already made two investments: a stake in Italy’s Absolute Energy, developing 3 GW of renewable projects, and a co-controlling stake in France’s Arkolia, specializing in rooftop photovoltaics.

⚡️ TotalEnergies acquired Germany-based renewable energy developer VSB Group from Partners Group for €1.57 billion. VSB, founded in 1996, develops wind, solar, and battery storage projects, with 475 MW currently in operation or construction and an 18 GW project pipeline across Europe. The deal aligns with TotalEnergies’ goal to expand its renewable energy capacity to 35 GW by 2025 and achieve 100 TWh of net electricity production by 2030. VSB’s expertise in onshore wind is expected to bolster TotalEnergies’ Integrated Power strategy in Europe.

⚡️ Global alternative investment manager Apollo acquired a 50% stake in a 2 GW portfolio of solar and battery energy storage assets in Texas from TotalEnergies, which will continue to operate the projects and retain the remaining stake. The $800 million transaction, including $550 million from Apollo and $250 million from shareholder loan refinancing, aligns with Apollo’s Clean Transition Capital strategy, which aims to invest $50 billion in clean energy and climate initiatives over five years. The portfolio includes three solar projects (1.7 GW) and two battery storage projects (300 MW).

🛩️ Elyse Energy, a French producer of sustainable fuels, raised €120 million to advance its e-methanol and sustainable aviation fuel (SAF) projects in France and Spain, targeting sectors like aviation and maritime. The funds will support final investment decisions for advanced projects and expand Elyse’s portfolio, aiming to replace fossil fuels and reduce CO2 emissions by 700,000 tonnes annually. Founded in 2020, Elyse specializes in producing sustainable fuels from low-carbon electricity and recycled carbon, as well as hydrogen via electrolysis.

🔌 ConnectDER, a Philadelphia-based company specializing in at-home EV charging and solar panel connection technology, raised $35 million in Series D funding led by Decarbonization Partners, a fund by BlackRock and Temasek. The funding will support market expansion, manufacturing scaling, and product innovation, including the launch of its new IslandDER Meter Socket Adapter, which enables seamless integration with the utility grid and allows homes to disconnect and reconnect to harness stored energy from solar, batteries, and EVs.

🍫 Planet A Foods, a Munich-based food tech startup, raised $30 million in Series B funding to scale production of its cocoa-free chocolate, ChoViva, from 2,000 to over 15,000 tons annually, targeting the mass-market confectionery sector. Made from sustainable ingredients like sunflower seeds and oats, ChoViva offers up to an 80% lower carbon footprint than traditional chocolate, addressing environmental issues like deforestation and carbon emissions tied to cocoa farming. Currently operating in Germany, Austria, and Switzerland, the company plans to expand into the UK, France, and the US, where it will open its first production facility.

📊 Berlin-based startup carbmee raised €20 million to expand its AI-powered carbon management platform, Environmental Intelligence System (EIS), which helps companies manage, reduce, and report carbon emissions, particularly scope 3 supply chain emissions. The funding will enhance its software and services, addressing challenges such as data silos and manual processes in manufacturing industries. Founded in 2021, carbmee counts major international clients like Lufthansa Technik, Maersk, and Coca-Cola.

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