What's Happening in Sustainability & ESG (Week Recap 30.09 - 06.10) 🌎

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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:

• ESG (or whatever you want to call it) is showing resilience despite the backlash 💭

• EU updates: Talks on the Omnibus stalled; Investors and corporates urge policymakers not to weaken and delay laws; and other news 🇪🇺

• Wind and solar power generated more electricity than coal for the first time in 2025 ⚡️

• SBTi launched a new e-learning platform and certification register to scale technical capacity for climate target setting 📑

• The Net-Zero Banking Alliance will cease operations 🏦

• and other news 🌍

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THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

💭 Despite recent withdrawals by major banks and asset managers from climate alliances, ESG efforts at the corporate and investor levels remain robust and expanding, according to a new FT article by MIT Sloan’s Florian Berg. While institutions like Goldman Sachs, JPMorgan, HSBC, and UBS exited the Net-Zero Banking Alliance amid US political pressure and fears of antitrust actions, corporate sustainability reporting has grown dramatically — with companies disclosing to the CDP rising from 4,968 in 2014 to more than 22,400 in 2024. In US regulatory filings for fiscal year 2024, 30% of public companies mentioned ESG, 47% referenced climate change, and 52% discussed sustainability.

ESG data revenues have soared from $245 million in 2016 to $1.56 billion in 2024, while MSCI’s ESG and climate data sales alone reached an annualized $384 million in early 2025, used by 48 of the world’s 50 largest asset managers. Global sustainability fund assets also climbed to $3.5 trillion by mid-2025, and 37 jurisdictions have adopted or plan to adopt the ISSB’s IFRS S1 and S2 reporting standards — evidence that, despite political headwinds, ESG integration remains deeply entrenched in global business and finance.

Across Europe, businesses acknowledge that sustainability is important for competitiveness

🇪🇺 A new E3G–YouGov survey found that most EU businesses support keeping strong sustainability reporting and due diligence rules, opposing efforts to weaken them under the European Commission’s Omnibus simplification proposals. Surveying 2,500 firms across five major EU economies, the report revealed that 70% of companies favor keeping sustainability reporting thresholds at 1,000 employees or fewer, and six in ten support proportionate reporting requirements. Most respondents also back mandatory transition plans and allowing large firms to request sustainability data from smaller suppliers. Additionally, 63% said large companies should be required to adopt green transition plans, and many identified indirect supply chain partners as the main source of human rights and environmental risks.

MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

🇪🇺 Talks on the EU’s Omnibus simplification package stalled in Parliament as MEPs failed to reach a common position, with deep divisions over the scope of the CSRD and mandatory transition plans. The EPP is pushing to exempt companies with fewer than 1,750 employees and €450 million turnover and to scrap climate transition plan requirements, while Renew and the S&D back the Commission’s proposal to keep the 1,000-employee threshold and maintain the plans. Despite ongoing pressure from the Commission and the Danish Presidency to advance the file, negotiations will continue until October 13, when the Legal Affairs Committee is expected to vote.

Meanwhile, pressure on EU policymakers is mounting from both investors and major companies

Investors managing more than €4.5 trillion have urged the EU not to weaken its methane emissions law, warning that regulatory uncertainty could undermine climate progress and investment confidence. In a letter signed by 42 institutions, including Ninety One, Pictet, Nordea, and Railpen, they called for maintaining rules requiring oil and gas importers to monitor and report suppliers’ methane emissions — despite US pressure to ease restrictions on LNG exports. Methane accounts for roughly one-third of global warming since pre-industrial times, and investors said reopening the law under the EU’s simplification agenda would slow progress. The first phase takes effect in May 2025, with stricter measures in 2027.

Corporate voices are echoing similar concerns over the anti-deforestation law

Nestlé, Ferrero, and Olam Agri have urged the EU not to delay its anti-deforestation law again, warning that postponement would endanger forests, weaken investor confidence, and erode regulatory credibility. The law — set to take effect on December 30, 2025 — requires companies selling soy, beef, and palm oil in the EU to prove their products are deforestation-free. The Commission recently proposed a second delay, citing IT system readiness, which could push implementation back another year. The companies said they are already on track to comply and that last-minute changes risk “watering down” the rules.

All this comes as new data underline both the EU’s climate progress and its remaining challenges

A new European Environment Agency (EEA) report shows the bloc cut GHG emissions by 37% since 1990 while growing its economy by 60%. Renewables now generate nearly half of EU electricity, yet fossil fuels still supply about 70% of total energy. Emission cuts have been uneven — strong in energy and industry, limited in transport and agriculture. Climate-related losses have reached €738 billion since 1980, with potential GDP declines of up to 7% by century’s end if warming exceeds 1.5°C. Biodiversity remains in crisis, with 81% of habitats in poor condition.

⚡️ Wind and solar power generated more electricity than coal for the first time in 2025. In the first half of the year, solar output rose 33% (meeting 83% of global electricity demand growth), while wind grew 7%, driving down coal and gas use. China added more capacity than the rest of the world combined, and India’s renewables expanded three times faster than demand, cutting fossil fuel use by over 3%. In contrast, the US saw a 17% rise in coal generation, while weak wind and hydro in Europe pushed gas and coal use higher. The IEA expects renewables to more than double by 2030, with solar providing 80% of new capacity and Asia leading growth.

🇩🇪 Germany unveiled a €6 billion ($7 billion) industrial decarbonization program that for the first time includes carbon capture and storage (CCS) technology within its climate protection contracts. Announced by Economy Minister Katherina Reiche, the initiative targets high-emission sectors such as steel, cement, chemicals, and glass, offering 15-year contracts to subsidize the shift to cleaner production while insulating firms from energy and carbon price volatility. Projects will be selected through competitive auctions favoring the lowest subsidy per tonne of CO₂ saved, with binding emissions targets attached. Companies must register by December 1 for the 2026 bidding round, pending EU and parliamentary approval.

📑 The Science Based Targets initiative (SBTi) launched a new e-learning platform and certification register to scale technical capacity for climate target setting. The SBTi Academy is structured into three hubs—Onboarding (free foundational training), Practitioners (advanced modules on the GHG Protocol and target-setting), and Certification (rigorous assessments for “SBTi Certified Experts”)—designed to address the global skills gap in sustainability.

🏗️ The Global Cement and Concrete Association (GCCA) launched a new membership category to boost collaboration on decarbonization. The “Net Zero Value Chain Partners” initiative expands participation beyond producers to include equipment suppliers, admixture firms, and carbon capture providers, fostering joint programs and knowledge-sharing with GCCA’s 50 members. Early partners such as Saint-Gobain, Schneider Electric, and Sinoma International highlight the push for collective innovation to cut emissions from cement and concrete — the world’s second most-used material after water.

WHAT ARE COMPANIES DOING?

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

🟢 Barclays signed its inaugural carbon removal agreement to capture CO₂ using crushed rocks and soil. The bank partnered with enhanced rock weathering (ERW) project developer UNDO to remove over 6,500 tonnes of CO₂ through spreading finely crushed silicate rock across ~10,000 acres of farmland in Ontario, Canada, where natural weathering processes store carbon long term.

🟢 Microsoft invested in Fortera, a low-carbon cement startup, and secured procurement rights to lower supply chain emissions from its data centers. Fortera’s “ReCarb” technology reportedly reduces cement CO₂ emissions by ~70% compared to traditional methods, while integrating with existing cement plants.

🚙 Mercedes-Benz has cut CO₂ emissions by 40% in producing its new electric CLA model by using low-carbon aluminium made with renewable energy and recycled materials from Norwegian producer Norsk Hydro. Hydro’s aluminium generates just 3 kg of CO₂ per kilogram—far below the global average of 16.7 kg—and includes 25% recycled scrap. Despite higher costs, both companies report rising demand for low-carbon products, with Hydro’s CEO noting that sustainability and profitability increasingly align as automakers and suppliers share the financial burden of cutting emissions.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🏦 The Net-Zero Banking Alliance (NZBA) will cease operations following a member vote to wind up the group after a mass exodus of banks amid US political pressure. Formed in 2021 as the banking sector’s leading global decarbonization initiative, NZBA faced criticism from US lawmakers who claimed its activities breached antitrust rules. While the membership-based structure will dissolve, its widely used “Guidance for Climate Target Setting for Banks” and related resources will remain publicly accessible to support financial institutions in setting emissions targets.

🤝🏻 Diginex, a sustainability-focused RegTech company, acquired Copenhagen-based ESG data firm Matter in a $13 million deal. The acquisition combines Diginex’s blockchain and AI technologies with Matter’s ESG data and analytics platform serving the investment industry. Diginex said the merger will enable it to offer end-to-end ESG data solutions for financial institutions, governments, and corporations, enhancing transparency, reporting accuracy, and sustainable investment decision-making.

⚡️ Nuveen’s Climate Impact Fund acquired a majority stake in Ally Energy Solutions to accelerate its growth in commercial and industrial decarbonization. Through its Private Equity Impact arm and the Climate Inclusion Fund II, Nuveen aims to support Ally’s expansion of distributed renewables, efficiency upgrades, and power infrastructure in the US.

Funding rounds:

📈 Paris-based venture capital firm Serena closed the first €200 million tranche of its fourth flagship fund, targeting a total of €250 million by 2026 to back early-stage startups in applied AI and climate technology. Founded in 2008, Serena plans to invest up to €15 million per company and continues its founder-first, hands-on approach through its expert support network.

⚡️ OpenSolar, a San Francisco-based solar software platform raised $20 million in equity funding. OpenSolar, used by over 25,000 installer businesses in 160+ countries, provides a free-to-use operating system for solar installers, integrating Google’s Solar API data to deliver precise system designs along with tools for sales, project management, financing, payments, and inventory - helping accelerate global solar adoption.

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