What's Happening in Sustainability & ESG (Week Recap 12.08 - 18.08) 🌎

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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. 🍀

In this edition, we’ll cover:

• From symbolism to value: Sustainability’s test in 2025 📑

• Nearly 11,000 companies now have validated science-based climate targets, covering 41% of global market capitalization 📈

• UN plastic pollution treaty talks in Geneva end without a deal 🌎

• California’s climate disclosure laws survived another legal challenge 🇺🇸

• and other news 🌍

PRESENTED BY CLIMATIZE

POWERED with Debra Lockard on Her Family-Run Farm Going Solar 🌞

In the second episode of POWERED by Climatize, you’ll meet Debra Lockard, a third-generation farmer in Tennessee, to see firsthand how Lockard’s Produce is building long-term resilience to fight food desserts with solar, and her experience getting funded on Climatize.

𝘋𝘦𝘣𝘳𝘢 𝘪𝘴 𝘢 𝘤𝘭𝘪𝘦𝘯𝘵 𝘰𝘧 𝘊𝘭𝘪𝘮𝘢𝘵𝘪𝘻𝘦 𝘢𝘯𝘥 𝘪𝘴 𝘯𝘰𝘵 𝘣𝘦𝘪𝘯𝘨 𝘤𝘰𝘮𝘱𝘦𝘯𝘴𝘢𝘵𝘦𝘥 𝘧𝘰𝘳 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘵𝘩𝘦𝘪𝘳 𝘰𝘱𝘪𝘯𝘪𝘰𝘯 𝘢𝘯𝘥 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘸𝘪𝘵𝘩 𝘰𝘶𝘳 𝘧𝘪𝘳𝘮. 𝘋𝘦𝘣𝘳𝘢'𝘴 𝘤𝘰𝘮𝘮𝘦𝘯𝘵𝘴 𝘮𝘢𝘺 𝘯𝘰𝘵 𝘣𝘦 𝘳𝘦𝘱𝘳𝘦𝘴𝘦𝘯𝘵𝘢𝘵𝘪𝘷𝘦 𝘰𝘧 𝘰𝘵𝘩𝘦𝘳𝘴' 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦𝘴 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘧𝘪𝘳𝘮.

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

beSirius’s new Sustainability Outlook 2025 report maps how sustainability is evolving this year, showing that companies must move beyond symbolic ESG to measurable, AI-enabled impact. What was once aspirational has become a survival-driven mandate: symbolic efforts are being cut, and initiatives must now deliver clear outcomes such as cost reduction, margin protection, risk mitigation, or improved financing terms. Regulatory uncertainty has added complexity, making it impossible for businesses to rely on compliance alone, while investor pragmatism increasingly rewards execution and near-term results over distant pledges.

In response, 74% of large corporations expanded their sustainability teams over the past two years, 42% added at least two full-time staff in 2024, and reliance on consultants dropped from 35% to 14%. Together, these shifts mark a decisive pivot toward in-house capability, tighter alignment with business strategy, and greater operational maturity.

AI as the Critical Lever for Sustainability Transformation

AI adoption has accelerated from 16% in 2024 to 89% of enterprises in 2025, making it the defining transformation lever. Leading organizations now see 80% of employees using AI daily, generating a 44% productivity boost across corporate functions.

In sustainability, AI reduces time spent on ESG processes by 60–80%, unlocking €150K–€250K in savings per mid-sized unit and €500K+ per large enterprise annually. By automating disclosures, validating data, and surfacing insights in real time, AI nearly doubles the time sustainability teams spend on strategy and business tasks (from 28% to 61%).

This shift enables faster responses to stakeholder requests (delivered in hours instead of weeks) and creates strategic gains like stronger procurement bids and risk detection. The next 12–18 months will be decisive — companies that implement AI as their sustainability operating core will become indispensable business partners, while others risk being cut as cost centers.

PRESENTED BY ECONOMIST IMPACT

Economist Impact’s 10th anniversary Sustainability Week | March 10th – 12th 2025, London

Economist Impact’s 10th anniversary Sustainability Week will empower businesses to go beyond “reduce and reuse” and to accelerate their sustainability strategies. With more than 400 speakers and over 2,500 in-person attendees, the event will present original insights and practical solutions focusing across all industries, driving action on sustainability. Meet the most influential speakers and experts who will deliver discussions on achieving net-zero by 2050, with sessions for challenging sectors, technology, agriculture, supply chains and more.

Register here and use discount code GD-SW/MP20 to get 20% off on your ticket

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

📑 Nearly 11,000 companies now have validated science-based climate targets, covering 41% of global market capitalization. SBTi reported a 227% surge in commitments over the past 18 months, with almost 40% of companies adopting both near-term and net-zero goals, up from 17% at the end of 2023. Industrial manufacturers represent one-third of adopters, while Asia — especially China, where pledges tripled to 450 — drove much of the growth. The findings counter claims that businesses are retreating from climate action, highlighting instead that companies see competitive and financial advantages in managing transition risks and embedding climate strategies into core operations.

Meanwhile, a coalition of 23 US State Attorneys General sent a letter to SBTi demanding details on its operations, citing concerns over antitrust, consumer protection, and fossil fuel boycotts. The AGs targeted SBTi’s new Financial Institutions Net-Zero (FINZ) Standard, claiming it pressures lenders and insurers to cut off oil and gas funding, risking collusion and greenwashing. They requested records on funding, member communications, insurer involvement, and how participation affects lending and coverage decisions.

🌎 UN plastic pollution treaty talks collapse. After 10 days of negotiations in Geneva, delegates failed to reach consensus on the world’s first legally binding plastics treaty. Oil-producing and petrochemical states, joined by the US, opposed measures to cap virgin plastic production, clashing with the EU, small island states, and others pushing for ambitious limits. The deadlock leaves the timeline for future talks unclear, though UN officials and several countries vowed to continue pushing forward. Contentious issues remain unresolved, including production caps, chemical restrictions, and financing for developing nations.

🇺🇸 California’s climate disclosure laws survived another legal challenge after a federal judge rejected claims they violated free speech. The US Chamber of Commerce and business groups argued that requiring companies to report GHG emissions and climate risks was unconstitutional “compelled speech,” but Judge Otis Wright II found they were unlikely to win. The laws — SB 253 and SB 261, signed as SB 219 in 2024 — mandate disclosures of Scope 1–3 emissions (for firms with $1B+ revenue) and climate risk reporting (for those with $500M+). Climate risk reports are due in 2026, Scope 1 and 2 disclosures start the same year, and Scope 3 follows in 2027. While plaintiffs may appeal, trial is set for October 2026, leaving California on track with the most sweeping US corporate climate disclosure regime.

🇪🇺 European Central Bank President Christine Lagarde warned that efforts to ease EU sustainability reporting rules could undermine the bank’s ability to manage climate risk. In a letter to lawmakers ahead of debates on the Commission’s Omnibus I package, she cautioned that proposed cuts to the CSRD, CSDDD, Taxonomy Regulation, and CBAM would remove up to 80% of companies from reporting, weakening data needed for climate risk assessments. Lagarde noted the ECB has integrated climate factors into monetary policy and collateral frameworks since 2022, with a new “climate factor” due in 2026, but stressed that firm-level data is essential. While some lawmakers want deeper cuts, she urged reforms to balance reducing burdens with preserving the financial system’s resilience to climate risks.

📑 Deloitte’s new “Sustainability Signals Dashboard” reveals that only 38% of employees believe their employers are doing enough to address climate change and sustainability, down from 45% in 2021. Based on surveys of 20,000 respondents across 20 countries, the findings show strong global concern about climate change, with 65% calling it an emergency and 75% agreeing it is human-caused, though US respondents remain less likely to share these views.

WHAT ARE COMPANIES DOING?

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

🚙 Ford is investing $5 billion to launch a new EV platform, assembly system, and prismatic LFP battery production in the US, creating nearly 4,000 jobs. Its first product will be a midsize four-door electric pickup priced around $30,000, larger than a Toyota RAV4 with performance rivaling a Mustang EcoBoost. Central to the plan is the “assembly tree” process, building sub-assemblies in parallel to cut assembly time by 40%, reduce strain, and improve quality.

📦 Amazon cut single-use plastic packaging by 16% in 2024, replacing it with paper. Plastic packaging dropped to 74,137 metric tons last year, largely swapped for paper, which is easier to recycle. VP Pat Lindner said paper offers better protection and convenience, despite higher shipping costs. Amazon also reduced plastic air pillows and expanded “Ships in Product Packaging.” Ocean conservation nonprofit, Oceana, welcomed the move, noting it’s business-driven rather than purely environmental, making it more sustainable long term.

📊 Intercontinental Exchange (ICE) expanded its climate risk platform to cover physical and transition risk data for 5 million private companies worldwide. The offering integrates ICE’s geospatial models with Dun & Bradstreet’s data, enabling deeper supply chain and footprint insights. Investors gain access to metrics on flood, wildfire, hurricane, extreme heat/cold, plus Scope 1–3 emissions and intensity by revenue, providing a consistent framework across public and private firms, sovereigns, municipal bonds, and MBS.

📊 Assent launched an EU Deforestation Regulation (EUDR) solution to help manufacturers meet due diligence rules eliminating deforestation-linked products. The EUDR requires traceability for commodities such as palm oil, beef, timber, coffee, cocoa, rubber, soy, and related goods. Assent’s solution identifies impacted parts and suppliers, maps commodities, engages suppliers in multiple languages, collects geolocation data, and generates due diligence statements ahead of the December 2025 deadline.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 The sustainability-linked loan (SLL) market has taken significant steps to improve integrity and credibility, according to a new review by the UK’s Financial Conduct Authority (FCA), which described the progress as “important steps in the development of a credible transition finance ecosystem.” Following concerns raised in its 2023 review around weak incentives, low-ambition targets, and potential conflicts of interest, the FCA noted improvements including more ambitious and business-aligned KPIs, a stronger focus on material Sustainable Performance Targets (SPTs), greater scrutiny from multiple sustainability coordinators in syndicated deals, and banks increasingly willing to declassify loans that fail to meet criteria. The regulator also highlighted that while these changes signal higher standards and better practices, pricing mechanisms remain modest, and barriers such as high reporting and assurance costs continue to limit SME access to the SLL market.

🏦 Danske Bank Group divested from most fossil fuel companies across its Danske Invest fund unit and Danica pension and insurance arm, following the rollout of a new policy assessing firms’ low-carbon transition plans. As a result, Danske’s fossil fuel investment universe has been cut from about 2,000 companies in 2024 to around 270, though overall exposure remains steady as the bank reallocates toward firms demonstrating credible transition strategies.

🟢 BlackRock’s GIP to acquire stake in Eni’s carbon capture business. US asset manager BlackRock’s infrastructure fund GIP agreed to buy a 49.99% stake in Eni’s carbon capture and storage arm (Eni CCUS Holding), though no price was disclosed. The deal aligns with Eni’s strategy of selling minority stakes in satellite businesses to fund growth.

📈 Nuveen raised $1.3 billion at the first close of its Energy & Power Infrastructure Credit Fund II (EPIC II). The fund seeks to capitalize on rising energy demand driven by digitalization, electrification, and reindustrialization across North America, Europe, and other OECD markets. EPIC II will provide directly-originated credit solutions spanning renewables, energy storage, hydrocarbons, LNG, and midstream.

⚡️ Apollo will acquire Kelvion, a Germany-based provider of energy efficient thermal management solutions, from investment firm Triton. Kelvion develops heat exchange and cooling solutions for sectors including data centers, hydrogen, carbon capture, heat pumps, HVAC, marine, and food and beverage, with advanced data center cooling now its largest and fastest-growing business. 

📊 Diginex will acquire supply chain risk monitoring platform Findings in a deal valued at up to $305 million. Findings provides cybersecurity, ESG performance, and compliance readiness solutions, enabling organizations and their vendors to monitor supply chain risks and automate vendor risk management.

Funding rounds:

💧 Equatic raised $11.6 million in a Series A funding round to advance its seawater electrolysis technology for large-scale carbon removal and green hydrogen production. Equatic has developed a process that enhances the ocean’s ability to absorb and permanently store carbon while generating carbon-negative hydrogen as a co-product, with pilot plants already operating in Los Angeles and Singapore and plans for a commercial-scale facility in Canada.

☕️ Prefer, a Singapore-based food tech start-up, raised $4.2 million in a Pre-Series A round and launched its new soluble coffee and cocoa powders, designed to replicate traditional products at lower cost and with a fraction of the carbon footprint. The company uses fermentation to transform upcycled byproducts like rice and soy into coffee and cocoa alternatives, claiming up to 85% lower emissions and 50% lower costs compared to Arabica coffee.

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