What's Happening in Sustainability & ESG (Week Recap 25.03 - 31.03) 🌎

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. 🍀

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In this edition, we’ll cover:

• US SEC backs away from climate rule, while most companies stay the course 🇺🇸

• EU member states approved the ‘stop-the-clock’ directive, and the EU Parliament will vote on the proposal April 3 🇪🇺

• ING becomes the first global systemically important bank to receive validation from the SBTi for its climate goals 🏦 

• Allianz Global Investors removed two key exclusions from its sustainable funds, allowing investments in defense and nuclear weapons companies 📈

• and other news 🌍

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇺🇸 The US SEC officially ended its legal defense of its climate disclosure rule, effectively abandoning the regulation without formally rescinding it. Originally adopted in March 2024 under former Chair Gary Gensler, the rule required public companies to disclose climate-related risks. It faced immediate legal opposition from 25 Republican state attorneys general and business groups. Under Acting Chair Mark Uyeda—appointed following Donald Trump’s election—the SEC withdrew from the court case, calling the rule “costly and unnecessarily intrusive.” The rule’s implementation, initially set for 2026, was already paused due to ongoing legal challenges. Critics condemned the move as a step backward, citing strong investor demand for climate risk transparency.

Despite this political pushback and regulatory uncertainty, 84% of companies plan to maintain or accelerate their climate investments in 2025, according to PwC’s 2025 State of Decarbonization report. Based on disclosures from over 4,100 companies, the report highlights that 37% are increasing their climate ambitions, while only 16% are pulling back. Climate strategies are becoming embedded in core business models, R&D, and risk frameworks, with 83% investing in low-carbon products—many of which can generate up to 25% more revenue than conventional offerings. Smaller firms are increasingly joining the movement, driving a 14% rise in new Scope 1 and 2 targets and showing the expanding influence of value chain accountability. Scope 3 engagement is also on the rise, though only 54% of companies are on track to meet those targets. Notably, climate commitments remain resilient through leadership transitions, underscoring their strategic importance for long-term competitiveness.

🇪🇺 EU member states approved the European Commission’s ‘stop-the-clock’ directive, delaying the implementation of key sustainability regulations—the CSRD and CSDDD. The move postpones CSRD reporting for non-reporting companies by two years and delays CSDDD enforcement by one year. The European Parliament will vote on the proposal April 3, with expectations leaning toward its approval. Following the likely vote, the co-legislators will need to finalize and adopt the legal text—a process that is anticipated to move quickly, allowing for formal adoption before the summer. Once adopted, EU member states will have until December 31, 2025, to transpose the directive into national law.

The European Commission also formally instructed EFRAG to simplify the European Sustainability Reporting Standards (ESRS), with a deadline to deliver recommendations by October 31, 2025. Key expectations include: significantly reducing mandatory datapoints by removing less relevant ones and prioritizing quantitative over narrative disclosures; clarifying unclear provisions and materiality guidance to prevent over-reporting; and ensuring alignment with EU laws and global reporting standards. The revised ESRS will be adopted via delegated act within six months of the Omnibus reforms taking effect, and may be used as early as FY 2026, becoming standard by FY 2027.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

⚡️ Global renewable energy capacity grew by a record 585 gigawatts in 2023—over 90% of total power expansion—driven largely by China and the US, according to the International Renewable Energy Agency (IRENA). China alone accounted for 64% of new capacity, while G7 and G20 countries made up 14.3% and 90.3%, respectively. Despite rapid growth, renewables remain far from meeting most global electricity demand, and regional disparities persist. IRENA warns that time is running out to meet global climate goals, with upcoming policy shifts—such as potential US rollbacks—posing further risks.

📑 The ISSB launched a new Jurisdictional Roadmap Development Tool to help regulators and market participants adopt its sustainability reporting standards. The tool supports jurisdictions in addressing key decisions such as leadership responsibility, stakeholder engagement, capacity building, and implementation timelines. It builds on the ISSB’s 2023 Inaugural Jurisdictional Guide and focuses on four areas: regulatory approach, scope of entities, disclosure content, and phasing in requirements. Over 35 jurisdictions have begun the process of using ISSB standards (IFRS S1 and S2), and the new tool is designed to facilitate consistent, informed, and scalable adoption globally.

🇦🇺 The Australian Securities & Investments Commission (ASIC) released Regulatory Guide 280 (RG 280), outlining how companies must comply with Australia’s new mandatory climate-related financial reporting law, set to begin in 2025 for large entities. The guide details reporting thresholds, required disclosures, and ASIC’s “pragmatic and proportionate” early enforcement approach, focusing on serious or reckless misconduct. It also outlines conditions under which relief may be granted and emphasizes support for companies during the transition. The law applies to large public and private companies based on size, with smaller firms phased in through 2027.

WHAT ARE COMPANIES DOING?

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

🏦 ING has become the first global systemically important bank to receive validation from the Science Based Targets initiative (SBTi) for its climate goals aligned with the 1.5°C target of the Paris Agreement. The SBTi approved ING’s financed emissions targets across key sectors—power, cement, steel, auto, aviation, and commercial real estate—covering 67% of its portfolio, as well as its own operational emissions. ING’s climate strategy includes strict fossil fuel financing limits, such as ending financing for new oil and gas fields and coal projects, and aligning its oil and gas portfolio with IEA’s Net Zero scenario.

🌳 Meta signed a long-term agreement with forest investment firm EFM to purchase 676,000 tons of carbon removal credits through 2035, supporting the shift of 68,000 acres of Washington’s Olympic Rainforest to climate-smart forest management. The credits will come from improved forestry practices that are expected to generate over one million tonnes of additional CO₂ removals over a decade, while also enhancing biodiversity, salmon habitats, public access, and tribal collaboration.

🛩️ Airbus reaffirmed its commitment to developing a hydrogen-powered commercial aircraft, selecting hydrogen fuel cell technology as its propulsion method, despite delaying its 2035 launch target due to slower ecosystem development. Announced at the 2025 Airbus Summit, the company will use a fully electric propeller system powered by four 2-megawatt hydrogen fuel cells, emitting only water as a byproduct. The aircraft aims to revolutionize aviation with zero-emission flight, positioning hydrogen as a long-term solution to decarbonize an industry responsible for 2–3% of global emissions.

🛢️ TotalEnergies, Equinor, and Shell will invest NOK 7.5 billion (USD $714 million) to more than triple the capacity of Norway’s Northern Lights carbon capture and storage (CCS) project to over 5 million tons of CO₂ annually by 2028. The joint venture, part of the Norwegian government’s Longship initiative, completed Phase 1 in September 2024 with 1.5 million tons of capacity—now fully booked—and aims to begin operations this summer. Phase 2 expansion follows a 15-year deal with Stockholm Exergi to store 900,000 tons of biogenic CO₂ per year, starting in 2028. Stockholm Exergi will build a $1.3 billion BECCS facility in Stockholm, backed by offtake deals with Microsoft, Frontier, Meta, JPMorgan, and others.

🟢 Enhanced rock weathering startup Eion secured a $33 million carbon removal agreement through Frontier, backed by buyers including Google, Shopify, JPMorgan Chase, and H&M. Under the deal, Eion will remove over 78,700 tons of CO₂ between 2027 and 2030 by spreading crushed olivine on farmland in the US, where it reacts with rainwater to permanently store CO₂ as ocean-bound bicarbonate. Eion replaces agricultural lime with olivine, offering a cost-effective, farmer-friendly solution with faster carbon removal.

♻️ Lululemon entered a multi-year partnership with biotech firm ZymoChem to scale the use of sustainable, bio-based nylon in its apparel. ZymoChem’s patented process converts renewable feedstocks into biodegradable polymers with near-zero CO₂ emissions and cost advantages over petroleum-based nylon. Building on their initial 2024 collaboration, the next phase focuses on commercializing bio-based nylon 6,6, a key material in Lululemon’s products, which make up 31% of its material use.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 Allianz Global Investors (AGI) removed two key exclusions from its sustainable funds, allowing investments in defense and nuclear weapons companies, as part of a shift to support Europe’s rearmament efforts. The changes permit investments in firms earning over 10% of revenue from military equipment and those involved in nuclear weapons under the Nuclear Non-Proliferation Treaty. The move reflects growing pressure on European asset managers to ease defense-related exclusions amid rising military spending and geopolitical tensions.

⚡️ Norges Bank Investment Management (NBIM), manager of Norway’s $1.8 trillion fund, acquired a 49% stake in two offshore wind projects from RWE for €1.4 billion ($1.5 billion), marking a major investment in renewable energy. The projects—Nordseecluster (1.6 GW) in Germany and Thor (1.1 GW) in Denmark—will together power over 2.6 million homes once operational. NBIM expects to invest around €4 billion in total construction costs. RWE will retain a 51% stake and oversee construction and operations, using the partnership to optimize capital allocation while maintaining control over the assets.

📈 Legal & General (L&G) launched a $235 million (£183 million) Nature and Social Outcomes strategy to support conservation and sustainable development projects in emerging markets, aiming to deliver both strong financial returns and positive environmental and social impact. The strategy will invest in biodiversity, education, healthcare, and clean water infrastructure, using innovative financing tools like debt conversion and outcome bonds with credit enhancements. L&G has already completed its first investment in Ecuador’s debt-for-nature swap.

Funding rounds:

🟢 GravitHy, a sustainable iron startup, raised €60 million ($64.7 million) to advance its plans to produce low-carbon iron and decarbonize the steel industry. Using renewable and low-carbon hydrogen, GravitHy will produce Direct Reduced Iron (DRI) and Hot-Briquetted Iron (HBI), aiming to cut emissions by up to 90% compared to traditional methods.

⚡️ Fusion energy startup Marvel Fusion extended its Series B funding round by €50 million ($54 million), bringing the total to €113 million, to accelerate its transition from R&D to industrial deployment. Marvel Fusion is advancing laser technology and scaling production to meet the energy output needed for commercial fusion. The investment signals growing confidence in fusion as a strategic energy solution for Europe’s future.

🏢 GridPoint raised $45 million to support its international expansion. The Virginia-based company provides energy management and optimization technology for commercial buildings, helping reduce energy use, costs, and emissions while enhancing grid resiliency. GridPoint’s platform, already deployed in over 20,000 buildings, uses data analytics, machine learning, and automation to support grid stability amid rising electricity demand from data centers, AI, and renewables.

🧬 GreenLight Biosciences closed its Series C funding round, securing $25 million from climate-focused investor Just Climate to expand and commercialize its RNA-based agricultural biosolutions. The Medford-based company develops sustainable alternatives to conventional pesticides, including Calantha, the first registered RNA-based crop protection spray for potatoes, and Norroa, a treatment for varroa mites in bees.

📊 Persefoni raised $23 million in a Series C funding round to expand its AI-driven sustainability and carbon management software, bringing its total funding to $179 million. The company, which provides tools for carbon footprint tracking, compliance reporting, and decarbonization planning, expects to reach profitability by late 2025.

🔋 German battery startup theion raised €15 million ($16.2 million) in a Series A round to advance its sulfur-based crystal battery technology, which aims to outperform conventional lithium-ion batteries in cost, energy density, and sustainability. Founded in 2020, the Berlin-based company uses upcycled sulfur—a low-cost, abundant alternative to nickel and cobalt—to develop batteries with triple the energy density, one-third the cost, and one-third the carbon footprint of standard batteries.

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