What's Happening in Sustainability & ESG (03.11 - 09.11) 🌎

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:

• COP31 opens with lower ambitions, while Democrats in the US target energy costs and data centres 🌍

• The EU and UK are reportedly close to an agreement linking their carbon markets 🏭

• EU Member states backed a one-year postponement of methane requirements and also withdrew the Green Claims Directive 🇪🇺

• The UK government committed to introducing mandatory human-rights due diligence requirements for large companies and their supply chains 🇬🇧

• and other news 🌍

Regulatory Oversight & Industry Insights

🇺🇸 Democrats swept the US midterms while barely mentioning climate change, indicating that affordability will shape the party’s next energy agenda. Candidates focused on rising fuel and electricity prices, data-centre demand and economic development, while newly elected senators from fossil-fuel-producing states supported all-of-the-above strategies, protecting oil and gas jobs and making technology companies pay more for the infrastructure they require. Congress will likely seek to block further regulatory rollbacks and may attempt to restore some Biden-era Inflation Reduction Act policies through must-pass legislation. Although major climate legislation remains unlikely without the White House, the new delegation could shape a more politically durable platform ahead of 2028.

The victory also sent shock waves through energy markets and could make the planned expansion of AI data centres significantly more difficult. CleanView estimates that the policies of newly elected governors could pause 41% of planned data-centre capacity, while projects representing an estimated 47 GW face moratorium risks. In Texas, a major data-centre market, Governor Gina Hinojosa campaigned on pausing development until new rules ensure a sustainable buildout. Democrats are also expected to push for restored clean-energy subsidies and fewer restrictions on wind power, positioning renewables primarily as a way to lower bills and strengthen energy supply rather than returning to the Green New Deal model.

🌡️ That shift from treating climate as a standalone issue to focusing on energy affordability, security and infrastructure is also visible as COP31 opens in Turkey. The summit follows a year of record heat, destructive disasters and energy shocks, with countries still heavily dependent on fossil fuels despite rapid renewable-energy growth. The world has already warmed by around 1.4°C and is heading towards approximately 2.6°C. Europe is entering with lower expectations and a narrower agenda, while the US is not expected to participate.

A central focus, and source of disagreement, is Turkey’s proposed pledge to increase electricity’s share of global energy consumption from around 23% to 35% by 2035. The proposal does not require the additional electricity to come from clean sources, prompting European and small-island states to seek stronger language while developing countries raise infrastructure concerns. Electrifying transport, heating and industry with clean power could reduce projected warming by 0.3°C, but would require major grid investment. The IEA argues that technology-neutral wording is necessary to secure broad agreement.

Latest developments, reports, insights, and trends

🏭 The EU and UK are reportedly close to an agreement linking their carbon markets nearly six years after Britain established its own emissions-trading system following Brexit. The deal would allow allowances to be traded between the two markets, reduce carbon-price volatility and exempt both sides from each other’s carbon-border charges. The EU is expected to recognize the UK’s emissions caps during 2028–2030, with an agreement potentially announced at an EU–UK summit on November 20.

In related news, more than 100 European companies warned that proposed EU carbon-market reforms could raise costs before energy-intensive industries have the technology and infrastructure needed to decarbonize. Signatories including Covestro, Evonik, Wacker Chemie, Voestalpine and Thyssenkrupp’s steel division said the changes could accelerate factory closures and production relocation. They oppose making free emissions allowances conditional on companies committing to decarbonization investments in Europe and are calling for fairer benchmarks, competitive energy prices and stronger demand for low-carbon products.

🇪🇺 The EU is moving to delay or withdraw several environmental requirements amid concerns about energy security and regulatory burdens. Member states backed a one-year postponement of methane requirements for fossil-fuel imports, while Parliament supports a three-year delay. Under the Council’s position, monitoring and reporting would begin in January 2028, methane-intensity reporting in August 2029 and maximum limits in August 2031. The European Commission also withdrew its Green Claims Directive, which would have required independent verification of voluntary environmental claims, although other restrictions on deceptive sustainability marketing remain in place.

European Parliament environment lawmakers also supported easing the EU’s 2035 emissions requirements for new cars and vans. The committee proposed requiring an 87.5% reduction in car emissions instead of the Commission’s proposed 90% and the existing 100% requirement, allowing some combustion-engine and hybrid vehicles to remain available. For vans, lawmakers backed an 80% reduction rather than the current 100% target. Parliament is expected to adopt its negotiating position in December.

🇬🇧 The UK government committed to introducing mandatory human-rights due diligence requirements for large companies and their supply chains. The proposed regime would cover UK companies with more than £350 million in revenue and foreign businesses generating the same amount in the UK. Companies would need to identify and address human-rights abuses and labour exploitation, while a regulator could investigate businesses and order the withdrawal of goods linked to forced labour.

🇬🇧 The UK Financial Conduct Authority finalized rules bringing ESG-ratings providers under regulatory supervision for the first time. From June 2028, providers operating in the UK will require FCA authorization and must disclose their methodologies, objectives, data limitations and coverage. The rules also introduce governance, quality-control, recordkeeping and conflict-management requirements. Applications for authorization will open in June 2027.

🇧🇷 Brazil’s securities regulator opened a consultation on restoring mandatory sustainability reporting only months after shifting to a voluntary system. The regulator is considering phased requirements based on company size, a future mandatory-reporting date or making only climate disclosures compulsory.

Brazil also released a voluntary global roadmap for transitioning away from fossil fuels and halting and reversing deforestation by 2030. The fossil-fuel plan addresses energy demand, production and countries’ economic dependence on fossil revenues, while the forest roadmap covers conservation, restoration, sustainable management and deforestation-free trade.

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

🏠 Florida Attorney General James Uthmeier sued climate-risk analytics provider First Street over property scores used by Zillow, Redfin and Realtor.com. The lawsuit alleges that the company’s flood, heat, wildfire and air-quality assessments are misleading, contradict official data and cause homes to sell more slowly and for less. First Street says its property-level models differ from FEMA maps because they incorporate changing climate conditions and high-intensity rainfall. The state is seeking restrictions on the company’s claims and penalties of up to $15,000 for certain violations.

🪨 Holcim invested in carbon-sequestration company 44.01 to advance their commercial partnership and support the startup’s international expansion. Oman-based 44.01 permanently stores captured industrial and atmospheric CO₂ by accelerating its mineralization into rock underground. The companies are already testing the technology at Holcim’s Fujairah cement plant in the UAE.

🔋 Walmart invested in Base Power and formed a partnership to expand access to affordable home batteries and strengthen grid reliability. Base’s systems provide backup electricity during outages while supporting the grid during peak demand. Beginning in November 2026, eligible Walmart customers will receive a 20% discount on standard installation fees.

⚖️ Lockheed Martin agreed to pay $29.5 million to settle Trump administration allegations that its diversity practices discriminated against white employees. The defense contractor will pay $22 million to the US government and approximately $7.5 million to more than 1,000 employees affected by its performance, promotion and bonus decisions. Lockheed denied liability and said it settled to avoid prolonged litigation.

Solutions

🧭 Deloitte launched Green Claims Navigator, an AI-powered solution for identifying greenwashing and checking environmental claims against regulation. The tool examines claims made through websites, reports, packaging and marketing materials, cross-references them with relevant rules and recommends stronger wording supported by evidence.

🏭 Isometric launched a service helping exporters prepare emissions data for verification under the EU Carbon Border Adjustment Mechanism. Experts develop monitoring plans and emissions reports, while an AI-powered platform checks uploaded information and flags potential issues. The service covers cement, iron and steel, aluminium, fertilizers, hydrogen and electricity.

Sustainable finance, funding rounds, acquisitions & private equity deals

🏦 The European Banking Authority postponed the first reference date for simplified ESG supervisory reporting by banks from September 2027 to December 2028. Following industry feedback, the EBA will publish its final revised reporting package in December 2026 with additional template reductions and longer implementation timelines. Proposed changes include a single simplified climate-risk template for smaller institutions, removal of their financed-emissions reporting and elimination of certain EU Taxonomy-related templates for larger banks, while retaining the information regulators require to supervise ESG risks.

Europe’s financial regulators also recommended further simplifying EU Taxonomy reporting for asset managers, banks and insurers. Proposed changes include restricting mandatory operating-expenditure reporting to non-capitalized research and development, removing banking indicators viewed as costly and of limited usefulness, and revising insurers’ underwriting disclosures. The regulators also opposed introducing additional voluntary metrics that could increase complexity and reduce comparability.

🏦 BBVA channelled €120 billion into sustainable business during the first nine months of 2026, an increase of 27% from the previous year. Corporate and investment banking accounted for approximately €60 billion, commercial banking €45 billion and retail customers €14 billion. Since the beginning of 2025, BBVA has channelled €254 billion (more than 36% of its €700 billion target for 2025–2029) with 77% connected to climate and natural-capital activities and 23% supporting social initiatives.

🔋 Norges Bank Investment Management acquired a 10% interest in Aypa Power for $300 million, marking Norway’s sovereign wealth fund’s first direct battery-storage investment. Aypa operates or is developing approximately 6.5 GW of contracted and operating capacity across the US and Canada, with a pipeline exceeding 20 GW.

Funds

📈 BlackRock launched an ESG-focused protected-equity fund for UK pension schemes seeking growth with reduced exposure to significant market declines. The strategy combines global equities selected using BlackRock’s sustainability insights with an options overlay designed to cushion downside risk without structurally limiting gains. It targets defined-contribution members approaching retirement and includes an objective to reduce portfolio carbon-emissions intensity.

🏗️ APG and Equitix formed an investment partnership of up to €500 million targeting essential infrastructure across the UK and continental Europe. Investments will focus on areas including offshore transmission, rolling stock and water infrastructure, supporting resilience, essential services and the energy transition.

🔋 Anchor Energy Partners launched its first €75 million fund to invest in battery storage and other energy-flexibility infrastructure across Europe. Anchor Fund I will focus on de-risked, ready-to-build mid-market projects that are too small for major infrastructure funds but require more capital than developers can provide independently.

Funding rounds

🔌 Energy-storage provider Return secured €835 million to expand its German battery-storage portfolio. Return aims to install at least 1 GW of battery capacity annually in Germany from 2027, requiring yearly investment of approximately €750 million to €1.2 billion.

🚚 Electric-truck manufacturer Harbinger raised $240 million to expand its electrification platform into energy storage, power generation, defence and autonomy software. The Series D will also support increased manufacturing capacity for Harbinger’s medium-duty electric-vehicle platform.

✈️ German electric-aircraft developer Vaeridion secured more than €124 million in equity and grant funding to develop and manufacture its nine-passenger Microliner.. Flight testing could begin in 2027, with certification targeted for 2030; the company already holds commitments for 130 aircraft valued above €730 million.

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 +8,000 Sustainability & ESG professionals. Contact us at arditnaka@greendigest.co if you think we can partner in some way.