What's Happening in Sustainability & ESG (Week Recap 09.01 - 15.01) 🌎

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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. 🍀

🌍 In this edition, we’ll cover:

• Renewable energy capacity experienced its strongest growth in decades in 2023, with a 50% increase from the previous year ⚡️

• Norway becomes the first country to authorize seabed mining activities 🇳🇴

• US carbon emissions fell 1.9% in 2023 📉

• Australia proposes new climate legislation 🇦🇺

• BlackRock has acquired GIP, the world's largest independent infrastructure manager, for $12.5 billion 📈

• and other news 🌍

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⭐️ The week’s top news:

⚡️ Renewable energy capacity experienced its strongest growth in decades in 2023, with a 50% increase from the previous year. New capacity added in 2023 reached 510 GW, bringing the total installed capacity to 3,700 GW. China played a key role in this growth, adding significant solar PV capacity, while it is expected to account for nearly 60% of new renewable capacity by 2028. The world is now on track to grow renewables capacity by 2.5x by 2030, but further efforts are needed to achieve the goal of tripling it, according to the International Energy Agency (IEA). To reach the 2030 goal, at least 11,000 GW of renewable energy capacity is required. The biggest challenge lies in scaling up financing and deployment of renewables in emerging and developing economies. Despite the potential of green hydrogen projects, progress is slow, with only 7% of current projects expected to come online by 2030.

🇳🇴 Norway's parliament has voted in favor of allowing Arctic seabed mineral exploration, aiming to become the first country to conduct deep-sea mining on a commercial scale. The decision overcame objections from environmental campaigners, although concerns over the environmental impact and international calls for a moratorium remain. The timeline for exploration has not been set, but companies will be awarded exclusive rights through an application process. Stricter environmental survey requirements have been added to the government's proposal.

🇺🇸 US carbon emissions fell 1.9% in 2023, primarily due to a significant decrease in coal use for electricity generation. However, emissions need to fall three times faster for the rest of the decade to meet climate goals. The decline in emissions was driven by the closure of coal power plants and the adoption of natural gas, wind, and solar power. The US has also proposed a fee on methane emissions from large oil and gas producers as part of the 2022 climate law. As directed by the Inflation Reduction Act, the fee starts at $900 per ton in 2024 and increases to $1,200 for 2025 and $1,500 for 2026 and beyond.

• The world’s largest asset manager, BlackRock has acquired Global Infrastructure Partners (GIP) for $12.5 billion, aiming to capitalize on long-term opportunities in decarbonization, energy security, digital infrastructure, and supply chain transitions. GIP is the world's largest independent infrastructure manager, with investments in energy, transportation, digital, and water sectors. The deal will put BlackRock at the heart of investing in ports, power, and digital infrastructure projects around the globe. The firm will now hold approximately $150 billion in infrastructure assets across a portfolio that ranges from the US liquefied natural gas export market to wastewater services in France to airports in England and Australia. 📈

• Australia has proposed new legislation that would require large and medium-sized companies to report on climate-related risks, opportunities, and GHG emissions. The aim is to provide transparency and certainty for investors and companies to invest in clean energy and manage climate change risks. The legislation would apply to public companies, large proprietary companies, and asset owners that meet specific size thresholds, with phased-in reporting requirements starting from July 2024. 🇦🇺

• Deforestation in Brazil's Amazon rainforest in 2023 decreased by 50% compared to the previous year, reaching its lowest level since 2018, according to government data. Preliminary satellite data from space research agency INPE shows that 5,153 km2 of the Amazon were cleared in 2023, a 49.9% decrease from 2022. Although this is still a large area, it is the lowest level since 2018. 🌳

• The EU countries built a record 17 GW of new wind power farms in 2023, exceeding the previous year's additions. However, this is still not enough to reach the EU's renewable energy goal of adding at least 37 GW of wind power per year. The wind power sector has faced challenges such as inflation, competition, and permitting delays, but improvements are being seen. Wind energy accounted for 19% of EU electricity last year, contributing to the bloc's 44% renewable energy generation. 🇪🇺

🧐 What are companies doing?

• Boston Consulting Group (BCG) has entered into a strategic agreement with 1PointFive, a subsidiary of Occidental, to purchase 21,000 metric tons of carbon dioxide removal (CDR) credits over three years. BCG will also collaborate with 1PointFive on consulting services and the development of business processes supporting Direct Air Capture (DAC) CDR credits. 🟢

• BMW Group announced that its Munich plant will transition to manufacturing only all-electric vehicles by the end of 2027. The plant, which currently produces approximately 1,000 vehicles per day, will invest €650 million in preparation for the transformation. The announcement aligns with BMW's commitment to combat climate change and increase the share of battery-electric vehicles in its global sales. 🚗

• Financial services and solutions provider Apex Group has launched Holtara, a new ESG solutions subsidiary, combining the firm's ESG advisory and reporting platform. Holtara will offer ESG advisory services with over 80 specialists and provide ESG Advantage, a platform for streamlining ESG reporting. The launch follows Apex's acquisition of MJ Hudson's Data & Analytics business and the recent launch of enhanced ESG solutions targeting investors, asset managers, and corporates. 📄

• BNP Paribas Asset Management (BNPP AM) has announced its new Global Sustainability Strategy (GSS), which aims to expand its range of sustainable and impact investment solutions. The strategy focuses on themes such as climate, nature-based solutions, and economic equality, and includes goals to increase climate and environmentally-themed investments, strengthen nature-based solutions, and develop investment strategies linked to equality and social themes. BNPP AM believes that the asset management industry will undergo significant change in the coming years, requiring long-term investors to support the transition to a more sustainable and inclusive economy. 📈

• Investment management firm Fidelity International has also announced a new sustainable investment approach focused on four key themes: nature loss, climate change, governance, and social disparities. The firm aims to address these systemic risks through engagement, voting, and active stewardship. Fidelity will also work towards achieving net zero across its investment portfolios by 2050 and halving its portfolio carbon footprint by 2030. 📈

💸 Recent funding rounds, sustainable finance, acquisitions, and private equity:

⛽️ Chesapeake Energy has agreed to acquire Southwestern Energy in a $7.4 billion all-stock deal, making it the largest independent US natural gas producer. The acquisition is driven by expectations of rising gas demand from proposed new US liquefied natural gas (LNG) export terminals. The combined company aims to have up to 20% of its future production tied to international pricing.

🔋 Swedish battery producer Northvolt has raised $5 billion in the largest green loan in Europe to expand its battery factories. With a total of over $13 billion in equity and debt, the company plans to expand operations in Sweden, Poland, Germany, the US, and Canada. The debt is provided by commercial banks, the European Investment Bank, and the Nordic Investment Bank. Northvolt has received orders worth over $55 billion from carmakers including BMW, Scania, Volvo Cars, and Volkswagen Group.

⚡️ UK nuclear fusion startup Tokamak Energy has raised over $50m in a Series C funding round. The company aims to commercialize fusion technology using high-temperature superconducting magnets within "tokamaks." While fusion power is not expected to be sold until the 2030s, Tokamak plans to generate revenue by commercializing its magnet technology for various applications.

📄 London-based sustainability firm Anthesis has merged with Revolt, a global purpose strategy specialist group, creating a leading global team in purpose, brand activation, communications, reporting, and strategy. Revolt, founded in 2017, supports C-suite decision-makers with sustainability and DEI projects. The acquisition will provide Anthesis with expertise in purpose consulting, strategy, and communication, enabling them to help clients in their sustainability transformation journeys.

🌍 Sphera, a provider of ESG performance and risk management software, has acquired supply chain sustainability software company SupplyShift. The acquisition aims to enhance Sphera's supply chain offering with expanded supplier mapping, scoring, and traceability capabilities. SupplyShift provides a cloud-based platform for supply chain data management, responsible sourcing, and supplier engagement, enabling businesses to build transparent and resilient supply chains. The acquisition aligns with Sphera's strategy to strengthen its supply chain sustainability capabilities and meet increasing regulatory demands for supply chain sustainability reporting.

🔋 Battery technology startup Tiamat has raised €22 million to develop and commercialize its lithium-free sodium-ion battery technology. Tiamat's sodium-ion technology offers fast charging, durability, high power density, and safety while addressing sustainability and supply chain challenges. The funds will be used to build a new sodium-ion battery cell Giga factory in France and scale up production for power tools, stationary storage, and battery electric vehicle applications.

♻️ Circularity-focused startup Resynergi has raised $6.4 million in series B funding to scale its advanced plastic recycling technology. The company uses Continuous Microwave Assisted Pyrolysis (CMAP) to convert plastic waste into reusable materials, at a rate 20 times faster than traditional methods. The funding will be used to scale production and expand the executive team. Resynergi aims to protect the environment by diverting plastic from landfills and oceans, meeting the market demand for products with recycled plastic.

That’s it for this week, thanks for making it to the end! If you enjoyed reading this newsletter, please don’t forget to subscribe and share it 🍀