What's Happening in Sustainability & ESG (Week Recap 25.02 - 03.03) 🌎

This week’s read time: 9 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. 🍀

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In this edition, we’ll cover:

• What’s next after the Omnibus? - Reactions and insights on the path forward 💭

• The EU announced the Clean Industrial Deal, an initiative that aims to support EU-made clean manufacturing and reduce energy costs 🇪🇺

• The COP16 UN biodiversity conference concluded in Rome with nations finalizing commitments to mobilize $200 billion annually by 2030 🌳 

• Apple shareholders rejected a proposal to end the company’s diversity policies📱

• and other news 🌍

PRESENTED BY ECOVADIS

EcoVadis event: What the Omnibus Package means for companies expected to comply with CSRD & CS3D

On 26 February, the European Commission announced a new Omnibus proposal to simplify key sustainability reporting and disclosure regulations including CSRD, CS3D, EU Taxonomy, and CBAM. What does this proposal mean for companies expected to comply with CSRD and CS3D?

Join us at Sustain, an EcoVadis event, on March 11 to hear from Dan Dionisie from the European Commission's Directorate-General for Justice and Consumers (DG JUST) and Fredré Ferreira, Governance Lead at the European Financial Reporting Advisory Group (EFRAG).

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇪🇺 As we’ve reported over the past weeks, the leaks have been confirmed. Given the extensive coverage, we won’t revisit the details in this issue. Instead, we’ll focus on reactions and perspectives on the path forward. If you’re not yet familiar with the Omnibus Simplification Package changes, at the end of the section is an infographic by Anastasia Kuskova (CEO & Co-founder at Sirius), summarizing the key proposals and a more comprehensive roundup of all the changes here.

Here are some insights from leading experts on the implications of the Omnibus and what comes next:

Sustainability ‘Post-Omnibus’ – In Search of a New Narrative

Andreas Rasche (Copenhagen Business School) & Georg Kell (UN Global Compact Founding Executive Director)

“The EU’s omnibus discussion isn’t just about reducing bureaucracy—it’s about a flawed narrative that portrays sustainability reporting as a cost burden rather than a strategic advantage. By focusing on short-term compliance costs, the EU risks undermining its own climate and competitiveness goals, creating a false trade-off between reporting and economic success.

Sustainability reporting is more than a box-ticking exercise; it helps companies price externalities, manage long-term risks, allocate capital efficiently, and foster innovation. Weakening these frameworks not only leaves investors with incomplete data but also limits businesses’ ability to adapt to growing environmental and social pressures.

Instead of rolling back requirements, we need a stronger value-driven narrative—one that sees sustainability as a driver of resilience, market leadership, and future-proof growth. Compliance alone is not enough; companies that embrace transparency and accountability will be the ones shaping the economy of tomorrow.”

Goodbye ESG, Hello Big And Small Sustainability

David Metcalfe (CEO & co-founder at Verdantix)

“ESG as a term is fading, but sustainability isn’t going anywhere. The backlash in the US has led firms to drop the acronym, yet real-world risks like wildfires, droughts, and supply chain disruptions remain top business concerns. Meanwhile, Europe’s regulatory shifts under the Omnibus review will drive a divide between companies pursuing ‘big sustainability’—those embedding it into long-term strategy—and ‘small sustainability,’ where it remains a fragmented, risk-based approach.

For businesses offering ESG-related software, data, or consulting, this means adapting positioning. In the US, firms should avoid the ESG label when selling into conservative markets, while in Europe, ditching ESG terminology may actually be an advantage, given its financial risk-focused connotation.

The key shift isn’t about abandoning sustainability—it’s about adjusting narratives and strategies to align with changing regulatory and political landscapes. Whether it’s financial risk-driven sustainability in the US or regulatory-driven transformation in Europe, companies will need to tailor their approaches to stay relevant in both markets.”

What You Should Do, Depending On Where You Are in the CSRD Journey

Solitaire Townsend (Chief Solutionist & co-founder at Futerra)

Scenario 1: You’re Almost Ready to Publish a CSRD Report

If most of the CSRD work is already done, the best move is to publish anyway to avoid wasting resources and maintain credibility. Key benefits include:

• Staying competitive—if peers publish, opting out could be noticeable.

• Internal value—aligns teams, strengthens strategy, and reinforces sustainability commitments.

Scenario 2: You’ve Started CSRD Work, but You’re No Longer in Scope

For companies midway through CSRD prep but now exempt, there are two options:

1. Continue voluntary reporting for investor trust, risk management, and future regulatory readiness.

2. Shift resources to high-impact sustainability actions, like:

• Sustainability innovation—low-carbon products, circular economy models.

• Climate transition planning for regulatory and market shifts.

• Stronger internal engagement to embed sustainability into core strategy.

CSOs need a clear Plan B—either justify voluntary reporting or showcase business-driven sustainability priorities.

Scenario 3: You Never Wanted to Do CSRD, and Now You Don’t Have To

For companies that saw CSRD as a burden, this rollback is an opportunity to refocus on sustainability as a business strategy rather than compliance.

This could mean:

• Shifting to sustainability innovation—product design, operational efficiency, and competitive advantage.

• Developing a Climate Transition Action Plan (CTAP)—a forward-looking, strategic approach.

• Leveraging sustainability for talent retention, especially among younger employees.

Three Types of Companies ‘Post-Omnibus’

Marjella Lecourt-Alma (CEO & Co-founder, Datamaran)

“We’re now going to see three types of companies: those that will do the bare minimum, those that will quietly continue leading on material ESG risks and opportunities, and those that will continue to lead loudly—driving the countermovement.

We’ve seen moments like this before—Trump I, COVID, the war in Ukraine—each time raising the question: ‘Who will still care about sustainability?’ And every time, the answer has been: ‘A lot of people.’

Canceling sustainability reporting doesn’t cancel the reality of sustainability. The companies that understand this will be the winners.”

Summary of key changes across CSRD, CSDDD, EU Taxonomy, and CBAM in Omnibus package

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 The EU also announced the Clean Industrial Deal, an initiative that aims to support EU-made clean manufacturing, reduce energy costs, and cut emissions by 90% by 2040. It targets hard-to-abate sectors like steel and cement, boosting clean-tech investment, circularity, and demand for low-carbon products. Key measures include €100 billion in funding, a new Industrial Decarbonisation Bank, and streamlined state aid to accelerate clean manufacturing. The deal also introduces sustainable public procurement, a Circular Economy Act, and trade partnerships to secure critical raw materials. Teresa Ribera called it the “EU’s business plan to tackle the climate crisis”, positioning it as a strategy to drive industrial transformation while maintaining economic strength.

🌳 The COP16 UN biodiversity conference concluded in Rome with nations finalizing commitments to mobilize $200 billion annually by 2030 for biodiversity protection. The agreement, which builds on targets set in Montreal in 2022, includes $20 billion per year for developing nations by 2025, increasing to $30 billion by 2030, and formalizes financial mechanisms to support the Global Biodiversity Framework, which aims to protect 30% of the planet and restore 30% of degraded ecosystems. While progress was made, the success of these commitments will depend on implementation, financing, and political will. Experts view the agreement as a positive step for international cooperation after previous biodiversity talks in Cali, Colombia, failed to secure a quorum.

WHAT ARE COMPANIES DOING?

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

📲 Apple shareholders rejected a proposal to end the company’s Diversity, Equity, and Inclusion (DEI) policies, though CEO Tim Cook acknowledged potential adjustments due to shifting US legal dynamics. Apple defended its DEI initiatives, emphasizing compliance and business strategy autonomy. While reaffirming Apple’s commitment to diversity, Cook noted that evolving legal risks may require modifications but emphasized that the company’s core values of dignity and respect remain unchanged. In related Apple news, the company is facing a lawsuit from consumers alleging that its claim of selling “carbon neutral” Apple Watches is false and misleading. The lawsuit, filed in a California federal court, argues that Apple’s reliance on carbon offset projects in Kenya and China did not result in genuine carbon reductions, as the areas were already protected or heavily forested.

⏪ Despite Apple’s continued commitment, the corporate retreat from DEI initiatives persists, with BlackRock, Goldman Sachs, and Bank of America scaling back diversity commitments. BlackRock announced it will no longer pursue workforce representation goals, merging its DEI and talent management teams into a new “talent and culture” department while dropping requirements for diverse candidate slates. Goldman Sachs removed its “diversity and inclusion” section from its annual filing and will let its five-year hiring diversity goals expire this year. The firm also ended its IPO diversity policy, which required at least two diverse board members for advisory deals. Bank of America similarly eliminated diversity hiring goals and removed the mandate for managers to consider diverse candidates, citing legal and regulatory changes.

🏦 Wells Fargo scrapped its net-zero financed emissions target for 2050 and its 2030 sector-specific interim emissions goals, citing reliance on external factors such as policy, technology, and consumer behavior that have not materialized. The decision follows the bank’s December 2024 exit from the Net-Zero Banking Alliance and reflects a broader reevaluation of ESG commitments amid shifting US political sentiment, including President Trump’s withdrawal from the Paris Agreement.

🛩️ United Airlines Ventures UAV Sustainable Flight Fund invested in Direct Air Capture (DAC) company Heirloom and secured rights to purchase up to 500,000 tons of CO₂ removal for sustainable aviation fuel production. This marks United’s first DAC investment and its third in carbon capture. Heirloom’s limestone-based DAC technology captures CO₂ from the air at a low cost, with plans for large-scale deployment.

🟢 Watershed launched a request for proposals (RFP) to add 1 megatonne of carbon removal credits to its decarbonization platform, addressing growing customer demand over the next 18 months. The RFP seeks both nature-based and engineered carbon removals, aiming to diversify offerings and help companies build high-impact, de-risked portfolios to meet climate goals and regulatory requirements.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 The UK’s largest pension fund, The People’s Pension (TPP), reallocated £28 billion ($35.5 billion) in assets from State Street to Amundi and Invesco, prioritizing sustainability and responsible investment. Amundi will manage £20 billion in passive developed market equities, while Invesco will oversee £8 billion in active fixed income. The shift follows a review of TPP’s Responsible Investment Policy, updated in March 2024 to include climate indices. State Street will continue managing the remaining £4 billion of TPP’s £32 billion portfolio.

⚡️ Blackstone closed its energy transition-focused private equity fund, Blackstone Energy Transition Partners IV, at $5.6 billion, exceeding its predecessor by 33%. The fund invests globally in clean energy, grid reliability, and decarbonization projects, with key investments including Energy Exemplar, Sediver, Westwood Professional Services, and Trystar.

🌳 Goldman Sachs Asset Management (GSAM) launched the Goldman Sachs Biodiversity Bond Fund, investing in a global portfolio of bonds supporting biodiversity conservation and remediation in alignment with UN SDGs. The fund will include both labeled green, social, and sustainability bonds funding biodiversity projects, as well as unlabeled bonds from companies generating revenues aligned with SDGs 6, 12, 14, and 15.

📈 BBVA set a new target to channel €700 billion ($735 billion) in sustainable finance from 2025 to 2029, more than doubling its previous €300 billion goal while accelerating the timeline from eight to five years. The bank surpassed its prior target a year early, reaching €304 billion by the end of 2024. The new financing will focus on climate change mitigation, natural capital (water, agriculture, circular economy), and social initiatives such as education, healthcare, and financial inclusion.

⚡️ National Grid sold its US onshore renewables business, National Grid Renewables, to Brookfield Asset Management for $1.735 billion. The deal includes 1.8GW of operational assets and 1.3GW under construction, spanning utility-scale solar, wind, and battery storage.

Funding rounds:

🥤 Sustainable packaging company Pulpex raised £62 million ($78 million) in a Series D funding round to scale production of its recyclable paper-based bottles, an alternative to plastic and glass. Backed by Diageo, Unilever, PepsiCo, and other major CPG brands, Pulpex’s wood pulp-based bottles are made from renewable feedstocks and can be recycled in household waste streams.

🧃 Dutch startup Vivici raised €32.5 million in Series A funding. The company’s Vivitein™ platform offers sustainable, animal-free proteins with 86% less water use and 68% lower carbon emissions than traditional dairy. The first product, Vivitein™ BLG, targets the $28.4 billion active nutrition market, enabling clear protein drinks and vegan-friendly bars.

🟢 Carbon capture firm CarbonQuest raised $20 million to expand its low-cost, modular CO₂ capture system for buildings and power generation sites. The US-based company, founded in 2019, captures CO₂ from natural gas sources, converts it into liquefied CO₂, and supplies it to industries for use in building materials, jet fuel, and chemicals.

🪵 Cambium raised $18.5 million in Series A funding to enhance its AI-powered wood supply chain platform and develop sustainable timber products for construction. The platform digitizes the traditionally manual wood industry, enabling local sourcing, reducing carbon footprints, and creating a chain of custody tracking system.

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