What's Happening in Sustainability & ESG (Week Recap 10.09 - 16.09) 🌎

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This week’s read time: 7 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:

• The US Securities and Exchange Commission (SEC) has quietly disbanded its Climate and ESG Task Force 🇺🇸

• Despite dropping down the list of priorities, a new survey by Deloitte reveals that most large companies have increased sustainability investments 📈

• Google partnered with carbon removal startup Holocene to purchase carbon removal credits at a record-low price of $100 per ton 🟢

• Standard Chartered will provide the first commercial loan to a carbon removal company, UNDO, after British Airways agreed to purchase over 4,000 tons of carbon credits in advance 🟢

• Credit Agricole, France’s second-largest listed bank, will shift from trading precious metals to focusing on regulated carbon markets starting in 2025 📈

• and other news 🌍

*Just a quick note to let you know that we’ll be taking a break next week and won’t be publishing any editions. We’ll be back in your inboxes on October 1. Thank you and see you soon! 📬

THIS WEEK’S TOP NEWS

Regulatory Oversight & Industry Insights

🇺🇸 The US Securities and Exchange Commission (SEC) has quietly disbanded its Climate and ESG Task Force, which had operated for three years, according to a spokesperson. The group, formed in 2021 under then-Acting Chair Allison Lee and continued by current Chair Gary Gensler, was initially created to address the emerging risk of greenwashing as investor interest in climate- and ESG-related data grew. The task force’s expertise has now been integrated across the SEC’s Enforcement Division. While the SEC claims that the enforcement strategies developed by the task force remain effective, the decision marks another step back in the agency’s focus on ESG topics, with its climate-risk disclosure rule still facing court challenges and ESG no longer a 2024 priority. The task force had previously pursued high-profile cases against companies like McDonald’s, Activision Blizzard, Goldman Sachs, and JPMorgan Chase, focusing on governance misconduct and misleading ESG claims. Although the task force is gone, the SEC plans to use the same enforcement tools if ESG-related risks resurface, including monitoring misleading claims about AI use in investments. The SEC is also unlikely to complete pending ESG regulations before the potential end of Gensler’s term in January.

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MORE INTERESTING NEWS

Latest developments, reports, insights, and trends

📈 Despite dropping down the list of priorities, a new survey by Deloitte reveals that most large companies have increased sustainability investments as C-suite executives grow more concerned about climate change and recognize the business benefits of sustainability initiatives. Deloitte’s 2024 CxO Sustainability Report, which surveyed over 2,100 executives globally, found that climate change is a top priority, with 70% of respondents expecting it to significantly impact their strategies and operations in the next three years. Executives are increasingly focused on direct business benefits, such as supply chain resilience and operational efficiency. Nearly half of the companies are developing climate-friendly products or services, and 85% have increased sustainability investments by more than 5% in the past year. Technology solutions and innovations are key actions companies are taking, with a focus on supply chain performance, energy efficiency, and renewable energy.

🇺🇸 The US Environmental Protection Agency (EPA) proposed updates to its Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing to help government buyers identify more sustainable products. The recommendations guide purchasers to environmentally friendly products across 35 categories, covering attributes like energy conservation, recycled content, and the reduction of harmful chemicals. The update adds 14 new standards in sectors such as healthcare, laboratories, and clothing, and expands guidelines for reusable and compostable food service products. It also removes seven outdated or non-compliant standards. The update follows the Biden administration’s sustainable procurement rule, which requires federal agencies to prioritize eco-friendly products.

🛢️ The Hague has become the first city globally to pass a law banning advertisements for fossil fuel products and high-carbon services, such as petrol, diesel, aviation, and cruise ships. The legislation, set to take effect next year, will ban these ads on public spaces like billboards and bus shelters. Unlike previous voluntary restrictions in other cities, The Hague’s ban is legally binding. This move follows a call by UN chief António Guterres for governments to implement similar measures, comparing fossil fuel advertising to tobacco. The law is seen as a model for other cities, with potential for adoption in places like Toronto and Amsterdam.

WHAT ARE COMPANIES DOING?

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

🟢 Google partnered with carbon removal startup Holocene to purchase carbon removal credits at a record-low price of $100 per ton, marking a significant step in making direct air capture (DAC) technology more commercially viable. DAC is seen as a critical tool for reaching net-zero emissions but has faced high costs and scalability issues. Holocene’s innovative system, supported by Google and the U.S. 45Q tax credit, aims to capture 100,000 tons of CO₂ by 2030. Google is investing up front to help Holocene develop technology that captures CO₂ using organic compounds and requires minimal heating for transport and storage, with hopes for large-scale deployment by the early 2030s.

📱 Apple released its Product Environmental Report for its new iPhone 16 series, highlighting sustainability achievements, including a 30% reduction in lifecycle GHG emissions for the iPhone 16 Pro and Pro Max models. The primary contributor to this reduction is the increased use of low-carbon electricity in its supply chain, cutting emissions by over 20%. Additionally, the iPhone 16 incorporates more than 25% recycled materials, including 100% recycled cobalt and over 95% recycled lithium in its battery. Other environmental features include plastic-free packaging and the promotion of recycling.

📈 Credit Agricole, France’s second-largest listed bank, will shift from trading precious metals to focusing on regulated carbon markets starting in 2025, aligning with its green ambitions. The bank has been gradually exiting the precious metals market, managing existing positions while preparing to enter the carbon trading market, particularly the EU Emissions Trading System (ETS), which accounts for 87% of the global carbon market. Credit Agricole’s precious metals business struggled after taking a loss during the pandemic’s disruption of the gold market in 2020. The bank now aims to bolster revenues through carbon markets, which reached a record value of €881 billion in 2023.

🌳 Microsoft purchased 234,000 Rainforest Restoration Carbon Removal Credits from Mexico-based Toroto, generated by a project in Campeche’s Calakmul region. The credits support Microsoft’s goal to offset carbon emissions and help restore 47,000 hectares of tropical rainforest. This initiative aids local landowners of the Conhuás ejido by providing income and promoting sustainable land management. The project also enhances ecosystem restoration, benefiting endangered species like the jaguar.

📊 SAP and Thomson Reuters launched a product integration, combining SAP’s ESG data platform, Sustainability Control Tower, with Thomson Reuters’ ONESOURCE Statutory Reporting tool. This unified ESG reporting solution helps companies manage and report sustainability data efficiently, addressing “last mile” reporting needs to meet new regulations like the EU’s CSRD and the US SEC’s climate reporting rules. The collaboration aims to simplify ESG reporting and compliance, providing businesses with tools to set and monitor sustainability targets while navigating evolving regulatory demands.

📊 Oracle launched Oracle Fusion Cloud Sustainability, a new application designed to help companies manage and report on sustainability efforts. Part of Oracle’s Fusion Cloud Applications Suite, the solution integrates data from enterprise resource planning (ERP) and supply chain and manufacturing (SCM) applications to provide businesses with a flexible framework for capturing and analyzing sustainability data. Key features include automated transaction records, contextualized data, prebuilt dashboards, emissions factor mapping, and audit capabilities.

📚 Deloitte launched Deloitte Academies, a new suite of immersive learning programs focused on upskilling in key areas like sustainability, AI, product innovation, and leadership. These academies will offer learning experiences tailored for different worker segments, including executives, technologists, and front-line employees. The initiative incorporates four existing programs, including the Sustainability and AI Academies, and aims to prepare organizations for future challenges.

EVERYTHING FINANCE

Sustainable finance, funding rounds, acquisitions & private equity deals

🟢 Standard Chartered will provide the first commercial loan to a carbon removal firm, UNDO, after British Airways agreed to purchase over 4,000 tons of carbon credits in advance. This deal is aimed at de-risking the loan by backing it with insurance that covers any shortfall in carbon credit production. UNDO uses “enhanced rock weathering,” spreading silicate rock dust on farmland to capture carbon when it rains, locking it away for over 100,000 years. Partners, including CUR8, CFC, and WTW, hope this structure can be a model for other developers, helping scale up the carbon removal market.

🛩️ Brookfield Asset Management announced a $1.1 billion investment in synthetic fuels company Infinium, the world’s first producer of ultra-low carbon eFuels. Brookfield will invest over $200 million in Infinium’s Project Roadrunner in Texas and up to $850 million in other global projects. This is Brookfield’s first direct investment in sustainable aviation fuel. The partnership aims to scale production to meet growing demand, with Infinium securing deals, including one with American Airlines for eSAF starting in 2026.

🟢 Occidental Petroleum’s carbon capture unit, 1PointFive, announced that the US Department of Energy’s Office of Clean Energy Demonstrations has committed up to $500 million to support the development of its South Texas Direct Air Capture (DAC) Hub. The DAC facility, Stratos, under construction in Odessa, Texas, is backed by BlackRock and marks a significant trial for large-scale carbon capture technology.

📈 A group of Japan-based financial and industrial companies, along with France’s TotalEnergies, launched the Japan Hydrogen Fund to develop a low-carbon hydrogen value chain. The fund opened with $400 million in commitments, with major investors including Toyota, Iwatani, and several Japanese banks. The fund will back hydrogen-related projects globally, while TotalEnergies is the only non-Japanese investor involved.

💧 WaterEquity, a US-based asset manager specializing in social and environmental impact investments in water and sanitation, raised over $100 million for its new Water & Climate Resilience Fund. The fund will invest in projects and companies working on water supply, wastewater treatment, and water reuse to enhance water stewardship and climate resilience. It aims to provide safe water and sanitation access to 15 million people across Africa, Asia, and Latin America, with a broader goal of reaching 100 million people.

🧀 German animal-free cheese company Formo raised $61 million in a Series B funding round. The company produces cheese alternatives using Aspergillus Oryzae (koji), a fungus with protein properties similar to whey, ideal for cheese production. Formo’s cheese alternatives, Frischhain and Camembritz, are now available at over 2,000 stores in Germany and Austria.

🔋 Battolyser Systems, a Dutch startup producing combined battery and green hydrogen machines, raised €30 million to support its expansion. The startup uses nickel-iron battery systems to store excess solar and wind energy, converting it into green hydrogen. At night, the battery supplies electricity to factories or the grid.

🥩 Novameat, a Barcelona-based sustainable food tech company, raised €17.4 million in an oversubscribed Series A funding. Agriculture, particularly livestock, contributes significantly to global GHG emissions, with livestock accounting for 14.5% of emissions. Novameat’s alternative meat, made from pea protein and developed using 3D printing technology, mimics the texture of animal meat in forms like steaks and pulled meat.

👕 Retraced, a Germany-based platform that helps apparel brands trace and manage sustainability in their supply chains, raised €15 million in a Series A funding round. The platform works with over 150 brands, including Victoria’s Secret, Desigual, and Marc O’Polo, assessing the sustainability practices of 15,000 suppliers globally.

⚡️ UK-based tem. raised £10.5 million in Series A funding for its AI-powered platform, which connects businesses directly with renewable energy generators, bypassing the traditional wholesale market. The platform’s proprietary algorithm matches businesses with renewable energy sources in real-time, processing 1.8 billion matches per second, helping businesses save up to 25% on energy bills while using 100% traceable renewable energy.

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