What's Happening in Sustainability & ESG (Week Recap 04.03 - 10.03) 🌎

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. 🍀

Unlock exclusive benefits and support Green Digest by becoming a Pro Supporter!

As a Pro Supporter, you now have access to ad-free newsletters, a database of +250 resources, and exclusive discounts on GRI courses and The Sustainability Circle membership using our special code. Join us today and take advantage of these perks while helping us grow!

In this edition, we’ll cover:

• An analysis of the first 100 CSRD-compliant reports reveals significant shifts in sustainability reporting 📑

• Debate in the EU Parliament over the Omnibus proposal revealed divisions among political groups—its future remains unclear 🇪🇺

• The Sustainability Standards Board of Japan (SSBJ) released its finalized sustainability disclosure standards 🇯🇵

• The CFA Institute announced that its Certificate in ESG Investing will be rebranded as the Sustainable Investing Certificate 📈

• and other news 🌍

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

📑 An analysis of the first 100 CSRD-compliant reports by the open-science platform Sustainability Reporting Navigator reveals significant shifts in sustainability reporting, with reports becoming notably longer, more complex, and data-driven. Companies with previously low disclosure saw the biggest increases in length and detail, while content expanded across all ESG topics, with climate, workforce, and governance dominating. According to Maximilian Müller, a Professor at the University of Cologne and co-founder of the platform, reports now feature a more negative tone, standardized terminology, and more tables, but fewer images. Despite these changes, numerical data usage remains unchanged. The findings, based on a textual analysis of 2023 vs. 2024 reports, provide early insights, though results may vary as more firms publish their disclosures.

🇪🇺 Speaking of CSRD— a heated debate in the European Parliament over the Omnibus proposal revealed deep divisions among political groups, with centre parties struggling to find common ground. The EPP (centre-right) pushed for an urgent procedure to fast-track the “stop-the-clock” proposal, signaling their intent for further changes in negotiations. S&D (centre-left) criticized the proposal as deregulation rather than simplification, arguing that it reduces oversight to pointless box-ticking. The Greens warned it undermines the green transition and deters sustainable investment, while Renew Europe (liberal-centrist) reminded the EPP that it must choose between negotiating with the centre or aligning with the far right. Meanwhile, ECR (conservatives and reformists) and the Europe of Sovereign Nations group called for radical cuts to regulations, with some MEPs advocating for scrapping multiple directives altogether. The key question now is whether the EPP partners with the extreme right for more drastic rollbacks or finds a middle ground with centrist groups to moderate the reforms. The approval of the Omnibus proposal depends on the European Parliament and the Council of the EU and its fate remains uncertain as the legislative process unfolds.

📈 In a move that some see as a pragmatic evolution and others as a capitulation to growing political headwinds, the CFA Institute announced that its Certificate in ESG Investing will be rebranded as the Sustainable Investing Certificate starting April 8, 2025. While the curriculum, pricing, and exam structure remain unchanged, the decision to abandon the ESG label reflects growing skepticism about the term in certain markets. This is the email certificate holders received notifying them of the change:

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇯🇵 The Sustainability Standards Board of Japan (SSBJ) released its finalized sustainability disclosure standards, aligning with the ISSB’s global framework and expected to become mandatory for listed Japanese companies. The SSBJ’s standards consist of three parts: a universal sustainability disclosure standard, general disclosures, and climate-related disclosures, closely mirroring the ISSB’s IFRS S1 and S2. The new standards are anticipated to be incorporated into Japan’s securities laws, particularly for Prime Market-listed firms.

🇺🇸 The Trump administration announced that the US “rejects and denounces” the UN Sustainable Development Goals (SDGs), citing concerns over sovereignty and ideological opposition to gender and climate policies embedded in the agenda. The statement, made by Edward Heartney at the UN General Assembly, marks a broader US retreat from international climate and sustainability commitments, including the withdrawal from the Paris Agreement. The US also withdrew from the Just Energy Transition Partnership (JETP), a global initiative to help developing nations transition from coal to cleaner energy, citing misalignment with national values and priorities. The JETP, launched in 2021, includes 10 donor nations and has provided financial support to South Africa, Indonesia, Vietnam, and Senegal. The US had committed over $3 billion to Indonesia and Vietnam and $1.063 billion to South Africa as part of an $11.6 billion pledge.

WHAT ARE COMPANIES DOING?

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

🛩️ Delta Air Lines partnered with JetZero to develop blended-wing aircraft that are up to 50% more fuel-efficient than conventional jets. JetZero’s innovative design integrates the wings and fuselage into a single smooth shape, reducing drag, fuel consumption, and emissions while allowing for sustainable aviation fuel (SAF) compatibility and quieter operation. Delta will provide technological and operational expertise through its Sustainable Skies Lab to help bring the aircraft to commercial viability. JetZero, which received a US Air Force grant in 2023, plans a demonstration flight by 2027, with the aircraft designed to carry over 250 passengers.

🌳 Microsoft, Climate Impact Partners, and Terra Natural Capital announced a finance and carbon removal purchase agreement to support the Panna afforestation project in India, with Microsoft committing to purchase 1.5 million tonnes of carbon removal credits over 30 years. The 20,000-hectare project in Madhya Pradesh will plant 11.6 million native trees.

🟢 Baker Hughes and Frontier Infrastructure partnered to accelerate large-scale carbon capture and storage (CCS) and power solutions in the US, focusing on meeting growing energy demands from data centers and industrial sectors. As part of the collaboration, Baker Hughes will provide technology solutions for Frontier’s Sweetwater Carbon Storage Hub (SCS Hub) in Wyoming, which spans nearly 100,000 acres and will store carbon from industrial emitters and ethanol facilities. Additionally, Baker Hughes will deploy gas turbines to generate 256MW of power for the US Mountain West, Wyoming, and Texas.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 BlackRock’s $22.8 billion acquisition of two key ports on both sides of the Panama Canal from CK Hutchison has bolstered its standing among US conservatives, including former critics within the Republican Party. Previously targeted by GOP-led states for its ESG policies, BlackRock is now seeing some officials reconsider their stance, with figures like Indiana Treasurer Daniel Elliott and Texas Comptroller Glenn Hegar acknowledging the deal’s benefits. The acquisition aligns with former President Trump’s priorities, potentially helping BlackRock regain political favor after losing billions in state-managed assets due to anti-ESG backlash. While BlackRock has scaled back its ESG efforts, including withdrawing from net-zero industry groups, legal challenges remain, including a Texas-led antitrust lawsuit.

🇬🇧 M&G Investments will adopt the UK Financial Conduct Authority’s (FCA) new “Sustainability Improvers” label for its Sustain Paris Aligned fund range. Introduced under the FCA’s Sustainability Disclosure Requirements (SDR), which will take effect in April 2025, the label applies to funds investing in assets with the potential to improve environmental or social sustainability over time. M&G’s Sustain Paris Aligned range includes Global, European, and UK funds, which actively engage with investee companies to support climate mitigation efforts and align with the Paris Agreement’s net-zero goals. The move places M&G among the first asset managers to adopt the label, following BlackRock and Schroders.

🏦 Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest bank, exited the Net-Zero Banking Alliance (NZBA), marking the first departure from a Japanese bank amid a broader wave of exits from the UN-backed climate coalition. Despite leaving, SMFG stated that its climate commitments remain unchanged, including its goal of net zero financed emissions by 2050.

Funding rounds:

⚡️ Nuclear technology startup Renaissance Fusion raised €32 million ($33 million) in a Series A round to scale and commercialize its fusion energy technology. Founded in 2020 in France, the company is developing stellarator-based fusion reactors using proprietary High-Temperature Superconductors (HTS) and liquid metal technology to reduce costs, radioactivity, and manufacturing time.

🟢 Spiritus raised $30 million in a Series A round to advance its low-cost, scalable DAC technology. DAC currently costs around $1,000 per ton, but Spiritus aims to reduce this by 90% to $100 per ton using its “Carbon Orchard” approach, which passively absorbs CO₂ without fans, utilizing a novel sorbent and low-temperature desorption process.

♻️ Biorecycling startup Epoch Biodesign raised $18.3 million in a Series A round to scale its enzyme-based plastic recycling technology. Founded in 2019, the London-based company uses AI and biochemistry to develop enzymes that break down PET, nylon, and polyester at low temperatures, reducing energy use and eliminating toxic chemicals.

🏘️ Norwegian proptech startup Telescope raised €3.7 million ($4 million) in a seed round to scale its platform, which helps real estate owners assess and manage sustainability and climate risks. Founded in 2022, the Oslo-based company provides tools to quantify risks such as biodiversity loss, climate threats, and regulatory changes, enabling smarter investment decisions and access to green financing. 

PARTNER WITH US

Increase your brand awareness and visibility by reaching the right audience and target market. Showcase your company, solutions, services, products, reports, surveys, events, or other content in front of our highly targeted audience of +4,000 Sustainability & ESG professionals. Contact us at [email protected] if you think we can partner in some way.