What's Happening in Sustainability & ESG (Week Recap 16.09 - 22.09) 🌎

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:

• After a post-hype decline, sustainability is stabilizing as CEOs link it to costs, customers, and capital 📈

• The EU will delay the launch of its anti-deforestation law for a second time 🇪🇺

• Climate Week NYC 2025 is hosting a record 1,000+ events, up from 900 last year 🇺🇸

• Australia set a new target to cut GHG emissions by 62%–70% by 2035 from 2005 levels 🇦🇺

• Texas AG probes proxy advisers Glass Lewis, ISS amid ESG backlash 📑

• and other news 🌍

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Economist Impact’s Sustainability Week Europe

October 6th-7th, 2025 | Amsterdam

Economist Impact’s Sustainability Week Europe, brings together leaders in business, policy and innovation to share case-studies, insights and ideas about climate solutions that work for business and the planet. With more than 120 speakers, 500 in-person attendees, 25 case studies, the Sustainability Week Europe presents original insights and practical solutions. Meet the most influential industry leaders, policymakers and innovators.

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

CEO focus on sustainability is shifting from words to business value. After a sharp decline in 2023–2024, Bain data shows the importance of sustainability on CEO agendas has bottomed out and is beginning to recover. Indexing against 2018, CEO prioritization peaked in 2022 before falling nearly 40 points, reflecting the “trough of disillusionment” that followed ambitious commitments of earlier years. Yet behind the quieter rhetoric lies continued action: 10% of companies have raised their SBTi targets since 2022, two-thirds remain on track with Scope 1 and 2 goals, and half of B2B buyers now allocate more business to sustainable suppliers.

What’s changing is the framing. Bain’s analysis of 35,000 CEO statements shows a decisive pivot: in 2018, just 34% of sustainability mentions were business-driven, while today that figure has climbed to 54%. Purpose-driven and CSR-driven references have shrunk, as leaders increasingly position sustainability as a lever for costs, customers, and capital. This “quiet CEO” narrative reflects a more pragmatic focus on ROI-positive decarbonization levers, while preparing for policy- and technology-driven inflection points that will reshape competition in the years ahead.

PRESENTED BY FINANCIAL TIMES

Climate & Impact Summit North America

22nd October 2025 | In-Person & Digital | Convene One Liberty, New York

Following Donald Trump’s election in November, negotiating the uncertain investment climate in the US has thrown into question the progress in clean energy adoption and sustainable development, and state specific barriers such as fossil fuels, economic inequality, and vulnerability to climate impacts.

The Financial Times’ Climate & Impact Summit North America will convene leaders in business, finance and policy to engage and create actionable strategies to drive investment, innovation, and policy alignment for a sustainable future following the theme,Sustainability and the Growth Agenda.

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MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 The EU will delay the launch of its anti-deforestation law for a second time, Environment Commissioner Jessica Roswall confirmed. The law, which will ban imports of soy, beef, cocoa, palm oil and other goods linked to deforestation, was already postponed once after pushback from industries and trade partners including Brazil, Indonesia, and the US. Roswall emphasized that the new delay is unrelated to US concerns.

EU climate ministers also confirmed the bloc will miss the global deadline to set new emissions targets due to divisions among member states. While China is expected to meet the deadline and Australia already has, the EU will instead submit a “statement of intent” pledging a 66–72.5% emissions cut by 2035, with a final target to come before COP30. The delay underscores growing tensions between ambition and concerns over industrial costs, security, and populist pressures. Some governments, such as Spain and Denmark, advocate stronger action, while others, including Italy and the Czech Republic, seek weaker policies.

🇺🇸 Climate Week NYC 2025 is hosting a record 1,000+ events, up from 900 last year, despite the Trump administration rolling back US climate policies. Organizers report strong enthusiasm, with former UN climate chief Christiana Figueres noting that momentum is now driven by markets and stakeholders rather than governments. Companies like Climeworks are scaling their presence, reflecting rising corporate demand for carbon removals. Running alongside the UN General Assembly, Climate Week has become a key networking hub for CEOs, investors, and world leaders.

🇦🇺 Australia set a new target to cut GHG emissions by 62%–70% by 2035 from 2005 levels, backed by more than US$5.3 billion in climate investments. The updated Paris Agreement pledge is supported by a Net Zero Plan and six sectoral strategies covering electricity, industry, transport, agriculture, buildings, and resources. The government is prioritizing renewable power, EV infrastructure, low-carbon fuels, hydrogen, and carbon removal measures to help decarbonize while supporting competitiveness and jobs.

🇸🇬 Singapore signed agreements to procure more than 2 million tonnes of Article 6-compliant nature-based carbon credits through its Ministry of Trade and Industry and National Climate Change Secretariat. The credits will help the country address residual emissions in pursuit of its climate commitments and position Singapore as a participant in international carbon markets. Authorities also plan a second tender later this year to secure additional supply.

WHAT ARE COMPANIES DOING?

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

🛢️ ExxonMobil CEO Darren Woods escalated opposition to the EU’s CSDDD, calling for its revocation and warning it could drive US businesses out of Europe. He said Exxon has already exited nearly 19 European operations due to red tape and paused a €100 million plastic recycling investment over draft EU rules. Woods raised the issue directly with President Trump, whose administration flagged concerns in trade talks, while US lawmakers introduced a bill to shield American firms from CSDDD. EU officials will negotiate loosened rules next month, though activists warn this risks undermining corporate accountability.

BP also halted development of its planned Rotterdam biofuels plans. The move follows BP’s February pivot back to oil and gas, dropping its 2030 biofuels target, and pausing projects in Australia, Germany, and the US, leaving Spain’s Castellon as the only possible future site. Instead, BP will focus on its Brazil joint venture BP Bunge Bioenergia and “capital-light” co-processing at refineries, which currently yield about 10,000 bpd, insisting projects must meet its 15% return threshold in line with upstream oil and gas.

🛩️ American Airlines and Alaska Airlines, together with Breakthrough Energy Ventures, launched a $150 million sustainable aviation fuel (SAF) technology fund to accelerate commercialization and reduce costs. Established through the oneworld BEV Fund, the initiative also includes IAG, Cathay Pacific, Japan Airlines, and Singapore Airlines, with the goal of scaling SAF that can cut lifecycle emissions by up to 85% compared to conventional jet fuel. The fund will target early-stage SAF production technologies, addressing feedstock constraints and high costs that remain barriers to mass adoption.

🟢 Google entered into a partnership with Vaulted Deep to remove carbon and establish methods for measuring methane reductions via the burial of biomass. Under this agreement, Google will buy 50,000 tons of CO₂ removal by 2030 through Vaulted Deep’s technology, which transforms organic waste (like biosolids, paper sludge, manure) into a carbon-rich slurry and injects it deep underground for long-term storage. 

🟢 Schneider Electric signed a long-term carbon removal purchase agreement with Climeworks to remove 31,000 tons of CO₂ by 2039 and to collaborate on cutting the costs of Direct Air Capture (DAC). This marks Schneider’s first purchase of high-durability carbon removals, complementing its nature-based initiatives.

⚡️ Microsoft signed a $6.2 billion, 5-year deal with AI hyperscaler Nscale and industrial investor Aker to secure renewable-powered computing capacity from “Stargate Norway,” a large-scale AI infrastructure project in Northern Norway aimed at deploying 100,000 NVIDIA GPUs by 2026. Powered by hydropower and designed for efficiency, the project positions Norway as a hub for sovereign, sustainable AI infrastructure.

⚡️ Eni signed a $1+ billion power purchase agreement with Commonwealth Fusion Systems (CFS) to offtake energy from CFS’ first commercial fusion plant in Virginia, expected online in the early 2030s. CFS, spun out of MIT in 2018, is developing SPARC and ARC to deliver the world’s first grid-scale fusion power, with recent backing from an $860 million fundraising round.

♻️ Ingka Investments, the investment arm of IKEA’s Ingka Group, has taken a minority stake in Vanguard Renewables and launched a partnership to convert IKEA store food waste into renewable natural gas (RNG). Vanguard Renewables develops anaerobic digesters that transform organic waste into RNG and low-carbon fertilizer. IKEA US is piloting the program in five stores, with plans for nationwide expansion.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🇺🇸 Texas Attorney General Ken Paxton launched an investigation into proxy advisory firms Glass Lewis and ISS for allegedly pushing ESG and DEI policies without sufficient economic rationale. Paxton’s office claims these firms may have misled institutional investors and public companies by issuing voting recommendations that favour environmental, social, and diversity-equity-inclusion policies—such as gender-based hiring quotas—over what he sees as sound financial interests. The probe follows a federal judge’s preliminary injunction blocking enforcement of a recent Texas law aimed at restricting how these advisers incorporate ESG and DEI into their advice. Glass Lewis has responded by stating its recommendations are grounded in long-standing research promoting long-term shareholder value.

⚡️ Macquarie Asset Management raised more than $3 billion in commitments for its Macquarie Green Energy Transition Solutions (MGETS) fund. The strategy is Macquarie’s first fund specifically focused on energy transition beyond just renewables, and invests globally in proven technologies, infrastructure, clean fuels, energy storage, transport electrification, carbon capture, and circular economy solutions.

📈 Galvanize launched a new $1.3 billion Credit and Capital Solutions strategy to provide flexible financing for companies and projects across the energy transition value chain. Founded in 2022, Galvanize said the strategy will address the growing demand for credit in renewables, grid and storage, electrification, energy efficiency, and advanced materials across the US, Canada, and Europe.

🤝🏻 La Caisse (formerly CDPQ) will acquire Australian renewables and battery developer Edify in a AUD$1.1 billion (USD$724 million) deal, funding both the purchase and growth of its 11 GW pipeline. Founded in 2015, Edify operates 6 solar farms and 5 battery systems and recently partnered with Rio Tinto to supply low-carbon power for aluminum operations.

📈 Suma Capital raised $249 million to back industrial decarbonization startups across Europe with its SC Net Zero Ventures I fund. The €210 million fund (USD $249m) is aimed at expansion-stage companies enabling low-carbon mobility, industrial electrification, renewable energy, hydrogen, advanced fuels, storage, and energy-management technologies.

📈 VoLo Earth Ventures raised $135 million for its second early-stage climate tech fund, a 50% jump over its inaugural $88 million vehicle. Despite tough fundraising conditions, the fund is designed to back scalable, capital-efficient technologies in sectors such as energy, mobility, buildings, and industry, with a dual focus on financial returns and environmental impact.

Funding rounds:

🔋 Terra One raised up to €150 million in mezzanine financing from Aviva Investors to accelerate its grid-scale battery storage rollout across Europe. With this funding plus project equity and other financing, the company expects to deploy as much as €750 million into new storage assets, amounting to around 3 GWh of capacity — enough to power about 20% of German households for one hour. 

🟢 Chestnut Carbon raised an additional $90 million in Series B funding to expand its carbon removal projects across the US. The company, which develops large-scale forestry and nature-based carbon solutions, said the new financing will support the acceleration of reforestation and afforestation initiatives.

📊 Soluna Holdings secured a $100 million scalable credit facility from Generate Capital to expand its renewable-powered data center pipeline. Founded in 2018, Soluna develops high-performance computing centers co-located with wind, solar, and hydro plants to convert wasted renewable energy into compute power.

⚡️ Sympower secured €19 million from Dutch pension fund manager PGGM, extending its Series B1 round to €42 million to accelerate its European energy flexibility services expansion. Founded in 2015, Amsterdam-based Sympower manages 2.7 GW of distributed energy assets, including over 0.5 GW of battery storage in the Nordics, and provides automated demand response and BESS optimization solutions to balance grids and cut emissions.

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