What's Happening in Sustainability & ESG (Week Recap 22.07 - 28.07) 🌎

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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:

• EU will continue 'simplifying' environmental legislation - the focus is now on circular economy, industrial emissions, and waste management 🇪🇺

• The UN’s top court ruled that states can be held legally responsible for climate harm ⚖️

• The SBTi released its Financial Institutions Net-Zero (FINZ) Standard, while paused work on the oil and gas standard 📑

• The US SEC says it will not review or defend its climate disclosure rules and asked the court to rule on the pending legal challenges 🇺🇸

• and other news 🌍

PRESENTED BY CLIMATIZE

Beyond Impact Investing: Joshua Dowdy on Installing Solar in Rural America 🌞

In this first episode of 𝗕𝗲𝘆𝗼𝗻𝗱 𝗜𝗺𝗽𝗮𝗰𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴, you'll meet Joshua Dowdy, a Tennessee farmer who used community funding to install solar at Liberty Hill Farms. We cover how the solar project was financed through Climatize, his experience with the REAP Grant, how solar boosts resilience in rural communities, and the positive impact of powering his farm with clean energy.

𝘑𝘰𝘴𝘩𝘶𝘢 𝘪𝘴 𝘢 𝘤𝘭𝘪𝘦𝘯𝘵 𝘰𝘧 𝘊𝘭𝘪𝘮𝘢𝘵𝘪𝘻𝘦 𝘢𝘯𝘥 𝘪𝘴 𝘯𝘰𝘵 𝘣𝘦𝘪𝘯𝘨 𝘤𝘰𝘮𝘱𝘦𝘯𝘴𝘢𝘵𝘦𝘥 𝘧𝘰𝘳 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘵𝘩𝘦𝘪𝘳 𝘰𝘱𝘪𝘯𝘪𝘰𝘯 𝘢𝘯𝘥 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘸𝘪𝘵𝘩 𝘰𝘶𝘳 𝘧𝘪𝘳𝘮. 𝘑𝘰𝘴𝘩𝘶𝘢'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

🇪🇺 The European Commission launched a new Call for Evidence for an upcoming “environmental omnibus proposal” aimed at simplifying environmental legislation and reducing administrative burdens for companies. This initiative aims to enhance competitiveness and cut reporting requirements by at least 25% for all companies and 35% for SMEs, as outlined in the Commission’s “Competitiveness Compass.” The new proposal builds on February 2025’s “Omnibus I” package, which targeted simplification of sustainability regulations such as the CSRD, CSDDD, Taxonomy Regulation, and CBAM. The new initiative will focus on areas including circular economy, industrial emissions, and waste management, with potential measures like rationalizing reporting under the Waste Framework Directive and harmonizing extended producer responsibility (EPR) rules. The Commission plans to adopt the new proposals in Q4 2025.

📑 Meanwhile, the European Financial Reporting Advisory Group (EFRAG) released its first comprehensive analysis of how companies are implementing the European Sustainability Reporting Standards (ESRS) under the CSRD. The report draws insights from 656 sustainability statements published by April 20, 2025, primarily by large companies in the EU. It finds significant diversity in the length, structure, and depth of disclosures. While most reports follow the ESRS structure, narrative styles and data point granularity vary. Materiality assessments were widespread, but only about 10% of companies deemed all 10 topical standards material. Climate Change (E1), Own Workforce (S1), and Business Conduct (G1) were almost universally reported, while topics like microplastics and civil rights received little attention.

Some of the Key Takeaways:

• 98% of companies deemed Climate Change (E1), 99% Own Workforce (S1), and 93% Business Conduct (G1) as material. Only ~10% of companies considered all 10 standards material.

• Average report length is 115 pages. Longer reports don’t necessarily mean more disclosures - narrative depth and peer comparisons play a role.

• 55% of companies report a climate transition plan; only ~40% include Scope 3 emissions.

• While alignment with ESRS is underway, consistency, comparability, and depth of disclosures need significant improvement.

PRESENTED BY REUTERS EVENTS

Reuters Events: Sustainability Reporting USA 2025 (October 9–10, Boston)

Now a cornerstone in the ESG calendar, Reuters Events: Sustainability Reporting USA 2025 (October 9–10, Boston) convenes 300+ senior ESG, finance, and legal leaders to shape the next chapter of sustainability disclosure. With a legacy of delivering practical, actionable content, the event equips professionals to navigate regulatory change, from SEC climate rulings to CSRD alignment. Learn how AI and data governance can elevate your ESG strategy, and how to communicate transparently with investors and stakeholders. With 50+ executive speakers and 65% senior attendance, this is your opportunity to build on trusted foundations and lead the future of sustainable reporting.

Find out more by visiting the event website here

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

⚖️ The UN’s top court ruled that states can be held legally responsible for climate harm, including GHG emissions and fossil fuel activity. In a landmark, unanimous advisory opinion, the International Court of Justice (ICJ) concluded that nations have binding legal obligations under international law - not just under climate treaties like the Paris Agreement - to prevent environmental harm, reduce emissions, and contribute to limiting warming to 1.5°C. The ruling affirms that climate harm can be attributed to specific states, and those affected - especially vulnerable nations and future generations - may be entitled to reparations, including compensation or policy changes. While non-binding, the opinion carries significant legal and moral weight and is expected to strengthen global climate litigation efforts, reshape legal standards, and increase pressure on high-emitting countries and fossil fuel producers.

🇺🇸 The US Securities and Exchange Commission (SEC) told the Court of Appeals it will not review or defend its climate disclosure rules and asked the court to rule on the pending legal challenges. The SEC declined to say whether it would enforce the rules if the court upholds them, stating that any decision would require a Commission vote. The rules, adopted in March 2024 under former Chair Gary Gensler, require public companies to disclose climate risks and, in some cases, emissions. Legal challenges were quickly filed, including by 25 Republican attorneys general and the US Chamber of Commerce. SEC Commissioner Caroline Crenshaw criticized the SEC’s response, saying the current leadership is effectively abandoning the rules without formally rescinding them.

⏪ Shell, Aker BP, and Enbridge have withdrawn from the SBTi’s advisory group after draft standards urged oil and gas companies to halt new fossil fuel development. The proposed Science-Based Targets initiative (SBTi) standard would require companies to stop developing new oil and gas fields by 2027 or upon submitting their climate plans. Citing resource constraints, SBTi has paused work on the oil and gas standard but denied the pause was linked to industry pushback. Shell and others criticized the draft for lacking industry input, while SBTi maintains it will revisit the standard later.

WHAT ARE COMPANIES DOING?

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

⚡️ Google partnered with Energy Dome and made a strategic investment to globally deploy the startup’s CO₂ Battery, a long-duration energy storage (LDES) solution critical for enabling 24/7 clean energy. The technology stores renewable energy using CO₂ and can dispatch electricity for up to 24 hours, solving key intermittency issues that lithium-ion batteries can’t.

🟢 Kimberly-Clark UK & Ireland has become the first major UK consumer goods company to sign long-term green hydrogen offtake agreements to decarbonize its tissue production. Partnering with Carlton Power and HYRO—a joint venture between Octopus Energy Generation and RES—the company is investing over $168 million into green hydrogen infrastructure at its Kent and Cumbria manufacturing sites, aiming to replace natural gas used for steam generation with hydrogen produced via electrolysis from renewable sources. The new hydrogen facilities are projected to supply 147 GWh of green hydrogen annually and reduce CO₂ emissions by 28,500 tonnes.

📈 J.P. Morgan led a $210 million project finance credit facility to support large-scale afforestation efforts by Chestnut Carbon in the US, backed by a carbon removal offtake agreement with Microsoft. The financing represents the first of its kind for a US voluntary carbon removal afforestation project, setting a precedent for using traditional infrastructure finance models to fund nature-based climate solutions. 

📈 Sustainability software provider osapiens announced a €35 million UK expansion, creating over 150 sustainability roles to support firms with growing compliance demands. The Germany-based company offers a platform to help companies meet regulations like CSRD, EUDR, and CSDDD. The move follows a $120 million raise last year and aligns with the UK’s push toward mandatory sustainability reporting.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📑 The Science Based Targets initiative (SBTi) released its finalized Financial Institutions Net-Zero (FINZ) Standard, enabling banks, investors, and insurers to set science-based net-zero targets across their financial activities. Key requirements include entity-level net-zero commitments by 2050 or earlier, emissions inventories for in-scope activities, and the publication of a fossil fuel transparency policy—mandating an immediate end to project finance for fossil fuel expansion and phasing out financing for oil and gas companies involved in expansion by 2030. The standard also requires annual public reporting on emissions, climate alignment, and clean energy exposure, with five-year progress assessments and updated targets.

📑 Proxy advisers Glass Lewis and ISS are suing Texas over a new law restricting shareholder advice on ESG and DEI, claiming it violates their First Amendment rights. The law, taking effect September 1, requires proxy firms to disclose that their guidance may not align with shareholders’ financial interests if it addresses diversity or environmental issues. The advisers argue the law forces them to promote the state’s political views and threatens their reputation, client relationships, and the integrity of shareholder voting.

🏦 NatWest Group launched a new £200 billion climate and transition finance target through 2030, doubling its previous goal and expanding its scope to include hard-to-abate sectors. Having already surpassed its earlier £100 billion target, the UK bank introduced a new Climate and Transition Finance Framework to guide eligibility, prioritizing both climate solutions and emissions-intensive industries like steel and aviation.

🏦 Deutsche Bank posted its strongest sustainable finance quarter since 2021, reaching over €28 billion in Q2 2025 and bringing its cumulative total to €417 billion toward a €500 billion goal by year-end. The surge was driven by high-profile deals like Slovenia’s first sovereign sustainability-linked bond and Iberdrola’s €750 million green bond under the new EU standard.

🏦 Standard Chartered launched a new Sustainable Escrow and Account Bank solution to help clients integrate sustainability into their cash management by linking deposits to the bank’s portfolio of green and sustainable loans and projects. The new offering expands the bank’s suite of sustainability-focused Transaction Banking Cash solutions, including its ESG-linked cash account, Sustainable Account, Sustainable Trade Finance, and Sustainable Financial Institution Trade Loan.

🤝🏻 Goldman Sachs Alternatives’ infrastructure team agreed to acquire Liquid Environmental Solutions (LES), a US non-hazardous liquid waste management firm, from Audax Private Equity. Founded in 2002, LES operates 64 service sites and 26 treatment facilities, serving sectors like hospitality and retail. Under Audax, LES expanded significantly, including 13 acquisitions.

🌾 Ambienta acquired Agronova Biotech, marking its first move into sustainable agriculture and expanding its presence into Spain. Agronova, a global leader in biological crop solutions, replaces synthetic chemicals with microbial alternatives to improve yields and reduce environmental harm. With over 800 products and operations across Europe and the Americas, the company is positioned to benefit from the $21B biosolutions market, driven by regulatory shifts and climate pressures.

⚡️ Mizuho Financial Group agreed to acquire Augusta & Co, a London-based financial advisory firm specializing in the renewable energy and energy transition sectors. The acquisition aims to enhance Mizuho’s M&A advisory capabilities and energy sector presence in the region by leveraging Augusta’s sector expertise.

Funding rounds:

⚡️ KKR is investing A$500 million (USD$325 million) in Australian solar company CleanPeak Energy to accelerate its distributed energy platform. CleanPeak currently operates over 50 energy sites and has a robust development pipeline.

⚡️ Sunsave raised £113 million to scale its UK solar subscription service, Sunsave Plus, making clean energy more accessible with no upfront costs. With over 32% monthly growth since launching in January 2024, Sunsave Plus enables households to save an average of £685 annually on energy bills through fixed 20-year payments.

📊 Supply chain data company Makersite raised €60 million ($70 million) in a Series B round to expand its AI-powered platform that helps manufacturers design greener, safer, and more cost-effective products. The Germany-based firm enables manufacturers to map product lifecycles, assess supply chain impacts, and identify sustainable sourcing and compliance strategies.

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