Weekly Recap: Latest Headlines and Highlights

Weekly Recap: Latest Headlines and Highlights

In the year 2025, the world of Environmental, Social, and Governance (ESG) finance witnessed a significant evolution, characterised by increased regulatory pressure, evolving investor expectations, and a mixed geopolitical landscape. This transformation has had a profound impact on sustainable finance outcomes and industrial emissions governance.

Carbon Removal Projects Gain Momentum

While explicit developments in carbon removal may have been limited, the broader ESG landscape has emphasised the need for rigorous, data-driven disclosure. This focus strongly supports investments in carbon removal technologies as part of companies' transition risk mitigation and value creation strategies. Transition finance, which aims to support a move away from high-carbon sectors towards more sustainable ones, is gaining traction globally, particularly in Asia.

Sustainable Finance Results Show Resilience

Sustainable funds demonstrated strong resilience and growth in 2025, with global sustainable fund assets growing by almost 10% to $3.5 trillion in Q2 2025. ESG stocks overall kept pace with broader markets, and clean energy stocks outperformed fossil fuels, reinforcing investor interest in the transition to low-carbon sectors. Asia remained a key growth region, with notable increases in sustainable bond issuance.

Government Regulations and Industrial Emissions

Stricter ESG disclosure mandates, such as the EU's CSRD, ESRS, SFDR, and the ISSB standards, now require companies to integrate ESG data, including emissions, into everyday financial reporting. Government regulations increasingly link ESG compliance with market access, contracts, and eligibility for sustainable finance, raising the cost of non-compliance and creating operational imperatives for emissions transparency and reductions.

Notable Developments in 2025

• Standard Chartered launched a new sustainable cash management solution for corporate clients.
• Jupiter Intelligence introduced new solutions for banks and investors to quantify climate risk.
• The Gold Standard released certification requirements for engineered carbon removals.
• INEOS invested $40 million to decarbonize a UK chemical site.
• Petrobras appointed a new chief of energy transition and sustainability.
• The SEC declined to comment on whether it would uphold the climate disclosure rule if a lawsuit against it failed.
• The UK allowed the use of carbon removals in the emissions trading system.
• Lloyds launched a Carbon and Nature Markets Practice.
• Sol Systems secured $675 million to fund solar and storage projects across the U.S.
• 88% of companies saw sustainability as a value-creation opportunity, according to a Morgan Stanley survey.
• Goldman Sachs acquired liquids waste solutions provider LES.
• Mizuho acquired energy transition-focused investment bank Augusta.
• Kimberly-Clark invested over $165 million to decarbonize manufacturing with green hydrogen.
• GeologicAI raised $44 million to use AI to source critical minerals.
• JPMorgan and Microsoft backed a new financing model to scale nature-based carbon removal projects.
• Makersite raised $70 million to help manufacturers design more sustainable products.
• The ICJ opinion opened the door for climate change lawsuits against developed nations.
• Deutsche Bank reported its strongest sustainable finance quarter since 2021.
• The EU planned to simplify regulations on industrial emissions, circular economy, and waste management.
• osapiens invested $40 million to enter the UK market as a sustainability compliance solutions provider.
• Meta bought 100% of renewable energy from a new $900 million solar project to power U.S. data centers.
• Ambienta acquired sustainable agriculture platform Agronova.
• A guest post discussed the need for insurance to adapt to the new climate reality.

In conclusion, 2025 marked a year of heightened focus on rigorous, data-driven disclosure, sustained investor interest in clean energy and carbon transition projects, and dynamic regulatory environments shaping how companies report and reduce industrial emissions. These forces collectively drive more strategic investments in carbon removal and sustainable finance while increasing obligations on firms to align financial management with ESG risks and opportunities.

1. Amidst the evolution of Environmental, Social, and Governance (ESG) finance, investments in carbon removal technologies are gaining momentum as part of companies' transition risk mitigation and value creation strategies.
2. In 2025, there were notable developments in sustainable finance, with global sustainable fund assets growing by nearly 10% and clean energy stocks outperforming fossil fuels, reinforcing investor interest in the transition to low-carbon sectors.
3. Stricter ESG disclosure mandates now require companies to integrate ESG data, including emissions, into everyday financial reporting, creating operational imperatives for emissions transparency and reductions.
4. In the realm of technology, there have been significant advancements, such as the development of new solutions to quantify climate risk, the use of AI to source critical minerals, and the scaling of nature-based carbon removal projects through innovative financing models.
5. Businesses are increasingly recognizing sustainability as a value-creation opportunity, with 88% of companies seeing its potential according to a Morgan Stanley survey. This shift towards sustainable finance and energy transition is further propelled by environmental-science and science-driven reporting on climate-change.

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