What's Happening in Sustainability & ESG (Week Recap 27.05 - 02.06) 🌎

Today’s newsletter is brought to you by Climatize

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. 🍀

Unlock exclusive benefits and support Green Digest by becoming a Pro Supporter!

As a Pro Supporter, you now have access to ad-free newsletters, a database of +250 resources, and exclusive discounts on GRI courses and The Sustainability Circle membership using our special code. Join us today and take advantage of these perks while helping us grow!

In this edition, we’ll cover:

• EU nearly on track to meet 2030 climate target, while set to propose a more flexible 2040 goal in July 🇪🇺

• The US Department of Energy canceled $3.7 billion in funding across 24 clean energy projects, mainly targeting low-carbon cement, carbon capture, and hydrogen projects 🇺🇸

• Norges Bank’s latest report signals a shift from traditional ESG frameworks toward a more integrated approach to managing planetary risks 📈

• The Sustainable Aviation Buyers Alliance launched SAFc Connect, a new online platform designed to simplify the purchasing of sustainable aviation fuel certificates 🛩️

• and other news 🌍

PRESENTED BY CLIMATIZE

Invest in U.S. renewable energy projects starting at $10

Climatize is a platform to invest in U.S. renewable energy projects starting at $10.

Over $8.6M has been transacted, helping fund solar installs on Tennessee farms, battery storage units in Georgia, energy efficiency upgrades at low-income homes in New England, and EV chargers at California community markets, among others. $1.8M+ has been returned in principal + interest.

While past performance doesn’t guarantee future results, previous projects have offered between 6-10% annual returns to investors. Interest rates vary by project, we recommend you do your research. Ready to Climatize? ⚡️

Climatize Earth Securities LLC is a Funding Portal registered with the Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”), not endorsed by the SEC and FINRA. Investing in Crowdfunded offerings involves risk. You should review the risks of a particular investment, either alone or with a personal advisor before investing, and only invest if you can afford to lose your investment. 

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇪🇺 The European Commission’s new report finds that the EU is nearly on track to meet its 2030 climate and energy goals, including a 55% cut in greenhouse gas emissions from 1990 levels. Current projections suggest a 54% reduction and a 41% renewable energy share, just below the 42.5% target. The EU had already reduced emissions by 37% by the end of 2023, despite significant economic growth. Member states have improved their final National Energy and Climate Plans (NECPs), particularly in transport and buildings, though challenges remain in energy efficiency (target: 11.7%, plans: 8.1%) and land-based carbon removal. Sectors like transport and agriculture are slightly behind the 40% emissions cut target.

Meanwhile, the European Commission will also propose a 2040 climate target to cut net greenhouse gas emissions by 90% from 1990 levels, but plans to include flexibilities to ease political and industrial concerns. These flexibilities may allow countries to set slightly lower domestic targets and use international carbon credits to bridge the gap. While the Commission insists it won’t dilute the EU’s climate ambitions, it faces growing resistance from governments and industries over high costs and competitiveness concerns. The target, to be presented on July 2, seeks to balance ambition with pragmatism and keep the EU on track between its 2030 goals and the 2050 net-zero objective. EU climate chief Teresa Ribera warned that too many concessions could undermine the target’s credibility, and voiced concern over the growing political silence and populist backlash surrounding climate policy in Europe and beyond, warning that watering down climate ambition comes at a human cost.

In other EU news, the European Council approved amendments to EU CO₂ emissions regulations for new cars and vans, giving automakers more flexibility to meet emissions targets and avoid steep penalties amid slower-than-expected EV adoption. Originally set to face fines annually for exceeding limits, manufacturers can now average their emissions performance across 2025–2027. The move, part of the EU’s Industrial Action Plan for the automotive sector, follows warnings from carmakers like Volkswagen, which projected over $1.5 billion in fines under the prior rules. The amended regulation will take effect 20 days after publication.

“Right now, corporate sustainability faces a kind of ‘identity disorder’. There is a significant backlash against some aspects, while at the same time there is still progress in other areas. For instance: on the very day the EU announced its Omnibus package, it also released the Clean Industrial Deal. While corporate sustainability sends these mixed signals and we are busy discussing how many companies should or should not report, sustainability as such does not care: 1.5C is a biophysical limit.” - Andreas Rasche, Professor and Associate Dean at Copenhagen Business School

PRESENTED BY REUTERS EVENTS

Reuters Events Sustainability Europe 2025 (London, 21-22 October)

Join your peers at Reuters Events Sustainability Europe 2025 (London, 21-22 October) for an unparalleled exploration of sustainability. Through our unparallelled interactive formats you can engage with experts on CSRD, climate risk management, and ESG materiality, delve into sustainability reporting and due diligence strategies and navigate non-financial regulations to transform your business into a resilient, sustainable enterprise. With over 500 senior sustainability professionals, this event is your chance to lead on sustainable action and enhance your organisation’s future competitiveness. Join us on for insights and opportunities that will shape the European sustainability landscape, drive sustainable action and deliver corporate value.

Find out more by visiting the event website here

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇺🇸 The US Department of Energy canceled $3.7 billion in funding across 24 clean energy projects, marking the Trump administration’s most significant rollback of climate funding to date. These projects, targeting sectors like low-carbon cement, carbon capture, hydrogen, and clean heat, were supported by the Office of Clean Energy Demonstrations (OCED), created to commercialize proven decarbonization technologies. DOE Secretary Chris Wright cited poor ROI and political motivations, cutting 70% of projects awarded during Biden’s final weeks. The hardest-hit sector was low-carbon cement, losing 94% of its federal backing. The cancellations risk 25,000 jobs and $4.6 billion in economic output, and could undermine US leadership in clean industrial materials, pushing startups toward Europe or Canada.

Over $14 billion worth of US low-carbon manufacturing and energy projects have been canceled, downsized, or delayed in 2025, largely due to growing uncertainty around federal clean energy tax credits and policy changes. According to nonprofit group E2, this rollback has already cost 10,000 planned jobs, with more projects at risk if the House’s reconciliation bill - aimed at scaling back the Inflation Reduction Act (IRA) - becomes law.

🌡️ The latest five-year outlook from the World Meteorological Organization signals that the world is likely to face record-breaking heat over the next five years, with at least one year expected to exceed previous temperature records and average warming predicted to surpass 1.5°C above pre-industrial levels. This puts the planet in a danger zone where climate impacts - heatwaves, crop failures, coral reef collapse, and extreme weather - could become both severe and irreversible. Companies also face growing physical risks: damaged infrastructure, stressed power grids, reduced agricultural productivity, and economic slowdown.

🛩️ The Sustainable Aviation Buyers Alliance (SABA), which includes Amazon, Deloitte, and Netflix, launched SAFc Connect, a new online platform designed to simplify the purchasing of sustainable aviation fuel (SAF) certificates. Previously, buying SAF could take up to 24 months due to lengthy vetting and proposal processes. SAFc Connect now allows alliance members to quickly compare pre-vetted SAF options based on price, carbon intensity, feedstock, and other attributes. The platform supports book-and-claim accounting, enabling companies to offset aviation emissions without direct use of SAF. At launch, five SAF providers are participating, with more expected to join. Initial demand for SAF certificates via the platform is projected at $30 million, with prices previously ranging from $300 to $500 per metric ton of CO₂.

PRESENTED BY GREEN DIGEST & TSC

Join us and TSC on LinkedIn

👉 Click here to RSVP

WHAT ARE COMPANIES DOING?

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

🌾 Microsoft and Indigo Ag signed a second carbon removal deal, with Microsoft agreeing to purchase 60,000 soil carbon credits generated by US farmers using regenerative agriculture practices. This builds on their initial 40,000-credit agreement from last year and is part of Indigo’s broader carbon program, which has so far removed over 900,000 tons of CO₂ and reduced significant water runoff. The credits are verified and issued through the Climate Action Reserve, with Indigo supporting farmers in adopting sustainable techniques. Microsoft also signed a deal with Sublime Systems to purchase over 600,000 tons of low-carbon cement. Sublime’s technology uses an electrolyzer to produce cement at room temperature without fossil-fuel kilns, significantly reducing CO2 emissions. The agreement enables Microsoft to use Sublime cement for projects and purchase environmental attribute certificates (EACs) separately, accelerating the opening of Sublime’s first commercial plant.

⚡️ TotalEnergies inaugurated its largest solar power plant cluster in Europe near Seville, Spain, comprising five projects with a combined capacity of 263 MW. The solar installations are expected to generate 515 GWh of electricity annually (enough to power over 150,000 households) and avoid 245,000 tons of CO2 emissions each year. Most of the electricity will be sold through long-term power purchase agreements, with the remainder sold on the wholesale market.

📊 SAP launched a suite of new sustainability-focused solutions aimed at helping companies manage value chain data and meet regulatory requirements. Unveiled at its Sapphire event, the tools will be part of SAP’s Business Data Cloud (BDC), providing structured and validated data on emissions and compliance. Upcoming integrations include carbon footprint data and SAP Sustainability Control Tower. SAP also added sustainability metrics to its Signavio business transformation suite, enabling carbon tracking across business processes.

📊 Socialsuite launched a new software platform designed to help companies manage double materiality assessments required under the EU’s CSRD. The platform integrates stakeholder engagement tools with AI-powered benchmarking to support compliance with CSRD and ISSB standards. Key features include centralized data management, industry trend analysis, and strategic risk assessment capabilities.

📑 Watershed launched a free, open-access version of its global emissions database, CEDA, to help organizations make more accurate decarbonization decisions. The database includes emissions data from 148 countries and 400 industries, covering 95% of global GDP. Originally developed by VitalMetrics, which Watershed acquired in 2023, CEDA aims to address widespread reliance on outdated or geographically skewed emissions data. The move supports broader access to high-quality environmental data, with partners like Amazon integrating CEDA into its Sustainability Exchange and Data Initiative to support informed climate action across sectors.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

📈 Norges Bank’s latest report signals a shift from traditional ESG frameworks toward a more integrated approach to managing planetary risks. Instead of relying solely on ESG frameworks, Norway’s $1.6 trillion sovereign wealth fund is employing proprietary risk scoring, AI models, and geospatial data to assess climate, biodiversity, and water-related risks. Their analysis suggests that portfolio loss estimates under high-warming scenarios may be significantly higher than previously projected—up to 27% using their internal models, compared to 2–4% with conventional methods. In response, the fund is adjusting its strategy by reducing exposure to high-risk holdings, increasing investment in renewables, and aligning energy assets with transition pathways. While critics argue this reflects a broader move beyond ESG as it’s traditionally understood, others see it as a sign of ESG evolving into more data-driven, systemic risk assessment.

🏦 Danske Bank announced a shift in its sustainable finance strategy to support not only traditional green projects but also companies in high-emitting sectors that are actively transitioning to net zero. The bank will now finance broader transition activities across sectors like power, steel, cement, and transport based on company-wide transition plans assessed using its proprietary risk framework. It will also support firms in transition-enabling value chains, such as renewable energy and battery storage. While this may temporarily increase financed emissions, the bank believes this approach better aligns with long-term climate goals and its clients’ evolving needs.

📈 BlackRock’s Global Infrastructure Partners (GIP) signed an exclusivity agreement to acquire a 49.99% co-controlling stake in Eni’s carbon capture, utilization, and storage (CCUS) business, expanding its green infrastructure portfolio. Eni CCUS Holding, which operates projects across Europe and holds future rights to a major Ravenna project targeting 4 million tons of CO₂ capture annually by 2030, will continue to grow with GIP’s investment.

📈 Snam raised $2 billion through a multi-tranche sustainability-linked bond (SLB) offering, tying debt costs to its net zero targets across Scopes 1, 2, and 3 emissions, the first SLB of its kind. Despite recent market skepticism toward SLBs, the issuance saw strong investor demand, with a $10 billion order book. The bonds, maturing in 2030, 2035, and 2055, were issued under Snam’s new Sustainable Finance Framework, which outlines emissions reduction milestones aligned with a 2050 net zero goal. This marks Snam’s US market debut and raises the portion of its sustainable finance to 86% of total funding.

Funding rounds:

⚡️ Radiant, a California-based nuclear tech startup, raised $165 million in Series C funding to advance the development of its 1MW nuclear microreactors, designed as zero-emission alternatives to diesel generators. The funding will support continued development, reactor testing at Idaho National Lab using DOE-provided HALEU fuel in 2026, and facility construction to mass-produce up to 50 microreactors annually.

⚡️ French renewable energy company Solveo Energies raised €98 million to accelerate the development of wind and solar projects supporting France’s carbon neutrality goals. The financing, led by sustainability investor Mirova, will help Solveo expand from its current 290 MW of assets to 800 MW of installed capacity by 2030.

🛩️ SAF producer SkyNRG raised €300 million to accelerate the development of SAF production facilities in Europe and the US. Founded in 2009, SkyNRG has transitioned from SAF distribution to production, aiming to lead SAF capacity expansion through a platform that includes project development, R&D, and advisory services.

⚡️ Heron Power raised $38 million in Series A funding to develop modern power electronics that solve grid bottlenecks and accelerate the clean energy transition. Heron’s flagship product, the Heron Link, replaces legacy transformers with modular, software-integrated, solid-state power converters that offer real-time voltage and frequency control.

🥙 Volare, a Finnish biotech food company, raised €26 million to scale its sustainable insect-based protein and fertilizer production. Volare specializes in converting food industry byproducts into high-value resources using black soldier flies.

PARTNER WITH US

Increase your brand awareness and visibility by reaching the right audience and target market. Showcase your company, solutions, services, products, reports, surveys, events, or other content in front of our highly targeted audience of +4,250 Sustainability & ESG professionals. Contact us at [email protected] if you think we can partner in some way.