What's Happening in Sustainability & ESG (Week Recap 10.06 - 16.06) 🌎

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:

• Latest EU updates 🇪🇺

• The UN Ocean Conference concluded in Nice, with considerable progress on ratifying the High Seas Treaty, expanding marine protected areas, and tackling illegal fishing and plastic pollution 🌊

• The Basel Committee released a long-awaited climate risk disclosure framework for banks, but made it voluntary 🏦

• The World Bank ended its decade-long ban on funding nuclear energy projects in developing countries ⚡️

• and other news 🌍

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇪🇺 The European Parliament’s Omnibus lead negotiator Jörgen Warborn proposed draft amendments to the EU’s Omnibus initiative that would further reduce sustainability reporting and due diligence obligations, drastically narrowing the scope of covered companies. While the European Commission already proposed exempting firms with fewer than 1,000 employees to ease competitive pressure, Warborn wants to go further, applying the rules only to companies with over 3,000 employees and €450 million in turnover. It also weakens value chain reporting, makes climate transition plans voluntary, and blocks member states from enacting stricter rules. These proposed rollbacks aim to cut compliance costs but risk deepening divisions in Parliament ahead of negotiations with the Council. Meanwhile, major corporations like Nestlé and Unilever have warned against reopening the directives, citing regulatory uncertainty.

EU member states have also sidelined technical experts in fast-tracking efforts to simplify the regulations, raising concerns over the quality and depth of the reforms. To accelerate changes to laws like CSRD and CSDDD, national governments formed an ad-hoc diplomatic task force, excluding subject-matter experts from key negotiations. Diplomats and insiders warn this shift prioritizes political speed over substance, allowing deep cuts to environmental rules with limited oversight. Critics argue that the sidelining risks weakening climate and sustainability standards, while supporters - like the Polish presidency - say it’s essential for boosting competitiveness.

🇪🇺 Other EU news:

⚡️ The Commission estimates that over €240 billion in investment will be needed by 2050 to implement EU member states’ nuclear energy plans and meet decarbonization targets. Released alongside its updated nuclear illustrative programme (PINC), the estimate includes €205 billion for new large-scale reactors and €36 billion for extending the life of existing ones. Nuclear capacity in the EU could rise from 98 GW today to as much as 144 GW by 2050, depending on project timelines and reactor lifespans. Additional long-term funding will be required for emerging technologies like SMRs and fusion. The Commission emphasized the need for both public and private capital, supported by de-risking tools, to maintain industrial leadership and ensure high safety and waste management standards.

🛩️ The bloc plans to subsidize over 200 million liters of sustainable aviation fuels (SAF) to accelerate the sector’s transition away from kerosene, potentially accounting for 15% of global SAF production. The subsidies, funded through the sale of 20 million carbon permits, aim to close the cost gap between conventional fuel and SAF by covering up to €6/litre for e-fuels and €0.5/litre for biofuels. Aviation, a hard-to-decarbonize sector, currently sees SAF make up just 0.3% of global jet fuel use due to high costs. The EU’s SAF mandates start at 2% in 2025, rising to 6% by 2030, though airlines argue the targets are unrealistic given limited investment—only 1–3% of revenues—and the high cost of SAF.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🌊 The UN Ocean Conference concluded in Nice, with considerable progress on ratifying the High Seas Treaty, expanding marine protected areas, and tackling illegal fishing and plastic pollution. The number of ratified countries for the treaty (key to protecting 30% of international waters) jumped from 27 to 50, with more pledging to follow. France, the UK, and French Polynesia announced major conservation steps, including bans on bottom trawling and extractive activities. Despite gains, deep sea mining remains contentious, and China’s growing participation in fisheries regulation marks a milestone. However, plastic treaty talks remain stalled, with only one major oil-producing country backing new production limits, and no fresh emission-reduction pledges were made.

🏦 The Basel Committee on Banking Supervision released a long-anticipated framework for climate-related risk disclosures by banks, but under pressure from the US, made it voluntary rather than mandatory. The framework, initially intended to support a Pillar 3 disclosure regime, aims to guide regulators in requiring banks to report on governance, strategy, and risk management related to climate risks, as well as material exposures and financed emissions. However, it drops key elements from the 2023 draft, including the requirement to report emissions from capital markets activities and mandatory disclosure across all TCFD sectors. Critics argue the watered-down approach undermines financial stability, with groups like Finance Watch warning that making climate risk disclosure optional threatens global coordination just as climate threats intensify.

🌎 The World Bank ended its decade-long ban on funding nuclear energy projects in developing countries, aiming to help meet surging electricity demand expected to more than double by 2035. President Ajay Banga confirmed the move as part of a broader energy strategy that embraces a diverse mix including solar, wind, natural gas, and nuclear. The bank will collaborate with the IAEA on nuclear safety and regulation, and support both existing reactors and small modular reactors. Critics warn this shift could divert resources from renewables, but the Bank says countries should choose their own least-cost energy pathways.

🇺🇸 The US EPA proposed repealing major regulations aimed at curbing greenhouse gas emissions and pollution from fossil fuel power plants, arguing that such emissions do not significantly contribute to dangerous air pollution under current law. The move targets both Obama- and Biden-era rules, including CO₂ emissions limits and 2024 mercury and particulate matter standards (MATS). This marks a continued rollback of climate-focused policies by the Trump administration, which claims these regulations raise energy costs and threaten grid reliability.

📑 The IFRS Foundation announced that 36 jurisdictions have adopted, used, or are moving to incorporate the IFRS Sustainability Disclosure Standards (ISSB Standards) into their regulatory frameworks, with 17 having finalized their approach. This marks steady growth from 30 jurisdictions in late 2024 and over 20 in mid-2024. The IFRS also released jurisdictional profiles and snapshots to increase transparency and help countries align their reporting systems. Among the 17 profiled jurisdictions, 14 plan full adoption of the standards, while others are partially incorporating them. The ISSB Standards aim to improve investor clarity on sustainability risks and opportunities across global markets.

🚗 The Science Based Targets initiative (SBTi) released a draft of its Automotive Sector Net-Zero Standard to guide automakers and auto parts manufacturers in setting science-based net-zero targets. Aligned with the upcoming Corporate Net-Zero Standard Version 2, the draft includes sector-specific criteria covering operational, supply chain, and product emissions. Automakers must now consider aggregated GHG intensity - including fuel use and end-of-life vehicle impacts - and commit to increasing low-emission vehicle sales. Auto parts suppliers are required to reduce emissions from materials and manufacturing and disclose parts sold for low-emission vehicles.

WHAT ARE COMPANIES DOING?

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

⚡️ Amazon signed a long-term deal with Talen Energy for 1.9 GW of nuclear power to support AWS data centers. The agreement, which runs through 2042 and may be extended, builds on a prior partnership to co-locate data centers near the plant. Amazon, having achieved its 100% clean energy goal ahead of schedule, is now investing over $1 billion in nuclear energy projects. The companies will also explore plant uprates and potential deployment of Small Modular Reactors (SMRs) in Pennsylvania as part of a broader strategy to ensure stable, carbon-free power and support regional economic growth.

🌾 Nestlé announced that nearly one-third of its Nescafé coffee was sourced from farms using regenerative agriculture in 2024, surpassing its 2025 target of 20% a year early. The milestone was shared in Nescafé’s 2030 Progress Report, which outlines its $1 billion plan to improve the sustainability of coffee farming. The strategy supports 200,000 farmers across 16 countries in adopting techniques like composting, mulching, and optimized fertilization to improve soil health, cut emissions, and boost resilience. These efforts have led to a 20–40% reduction in GHG emissions per kilogram of green coffee. The company now aims to reach 50% regenerative sourcing by 2030.

🟢 Lululemon signed a 10-year offtake agreement with Samsara Eco to source enzymatically recycled nylon and polyester, potentially covering 20% of its fiber portfolio. Samsara Eco, launched in 2021, uses enzymes to break down complex plastics into virgin-grade inputs, enabling circular production without fossil fuels. The companies previously collaborated to recycle nylon 6,6 and launch the first products made with enzymatically recycled polyester.

📚 Nasdaq launched the Nasdaq Carbon Academy, a free educational platform designed to help individuals and companies integrate carbon dioxide removal (CDR) credits into emissions reduction strategies. Developed in collaboration with AirMiners, the academy addresses growing demand for carbon offset knowledge by offering self-paced courses, expert insights, and real-world case studies. It covers topics from CDR fundamentals and methodologies to budgeting, MRV, and quality assessment, making it suitable for business leaders, environmental professionals, and investors.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 Most global investors are shifting their climate-related investment focus outside the US in response to the Trump administration’s policies, which many believe will temporarily hinder global net zero progress and portfolio decarbonization goals, according to Robeco’s new “Global Climate Investing Survey 2025.” The survey of 300 investors managing $31 trillion found a notable decline in climate prioritization, especially in North America, where only 23% of investors now say climate is central or significant to their strategy, down from 61% in 2023. Despite this, most respondents view the US policy impact as short-term, with 56% expecting momentum to return post-Trump. Many investors are redirecting capital to other regions, with strong interest in Europe and Asia-Pacific markets. While policy shifts have created uncertainty, 39% of investors plan to increase investments in climate solutions, particularly in grid modernization, clean energy, and carbon capture. Barriers to scaling adaptation investments include product gaps and return uncertainty. Still, nearly two-thirds of investors expect climate to become central again in the next two years.

🇪🇺 The Association of Chartered Certified Accountants (ACCA) urged the European Commission to revise the Sustainable Finance Disclosure Regulation (SFDR) to simplify and reduce reporting burdens for financial market participants. In its response to the Commission’s call for evidence, ACCA argued that the SFDR’s complex and granular requirements strain asset managers’ budgets, hinder smaller firms, and undermine its own sustainability goals. ACCA also noted a lack of enforcement, limited attention to social factors, and unclear rules around the “do no significant harm” test. It welcomed the Commission’s plan to revisit product categorization, calling for a more flexible, transition-focused approach.

⏪ Munich Re announced its withdrawal from several major climate-focused investor coalitions, including the Net Zero Asset Owner Alliance and Climate Action 100+, citing legal uncertainty and the growing complexity of climate disclosures. Despite the move, the world’s largest reinsurer reaffirmed its commitment to the Paris Agreement goals, stating it will pursue its climate targets independently to avoid non-regulatory reporting burdens and potential legal risks.

📈 KKR and HASI’s clean energy investment platform, CarbonCount Holdings 1 (CCH1), announced a $592 million private offering of senior unsecured notes to expand its investment capacity. Launched in 2024 with $2 billion in commitments, CCH1 focuses on US-based clean energy projects, including behind-the-meter, grid-connected, and renewable transport infrastructure.

🌊 SWEN Capital Partners raised €160 million at the first close of its SWEN Blue Ocean 2 fund to back startups advancing ocean biodiversity regeneration. Targeting €300 million in total, the Article 9-classified fund aims to be the world’s largest ocean impact venture fund, investing primarily in Series A rounds for solutions tackling overfishing, pollution, and climate change.

Funding rounds:

⚡️ Fervo Energy secured $206 million to accelerate development of its Cape Station geothermal project in Utah, US, which could deliver up to 2 GW of carbon-free power. Cape Station, Fervo’s first greenfield project, uses enhanced geothermal systems (EGS) to harness heat from deep rock formations and is set to deliver 100 MW by 2026 and 400 MW more by 2028.

⚡️ German startup Proxima Fusion raised €130 million in a Series A round to build the first stellarator-based fusion power plant by the 2030s. Proxima is developing advanced stellarators - doughnut-shaped devices using magnetic fields to achieve stable fusion without the disruption risks of other approaches. This marks the largest private fusion investment in Europe to date.

⚡️ Runwise raised $55 million to scale its smart building platform that reduces energy costs and carbon emissions. Runwise’s technology, already used in over 10,000 buildings, combines wireless hardware and cloud-based software to modernize outdated building systems, delivering $115 million in energy savings and major CO₂ reductions.

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