ESG+ Newsletter – 16 July 2026

SEC tightens disclosure rules for activist investors

As reported by Reuters, the US Securities and Exchange Commission (SEC) has issued new guidance requiring activist investors to disclose the identities of their clients in regulatory filings. The move may have significant impact on hedge funds, which have traditionally sought to keep their funding sources confidential. The guidance follows an intense six-month period for shareholder activism and the growing use of special purpose vehicles, or “sidecars“, to finance activist campaigns. These structures allow investors to back campaigns targeting specific companies rather than investing through a hedge fund’s broader portfolio. Hedge funds have long argued that revealing the identities of their investors could expose commercially sensitive strategies and encourage copycat campaigns. 

The development adds to a broader trend in the US, which some commentators have argued place additional regulatory burdens on investors, rather than corporate issuers, coming on the back of regulatory changes that primarily affect passive investors, proxy advisors and proponents of ESG-related shareholder proposals. The SEC’s latest guidance extends that trend to activist hedge funds. 

Climate tech sees record-high deals as power demand fuels market appetite

In the first half of 2026, the global climate tech sector saw its most active stretch yet for public listings and acquisitions, with 153 transactions announced. Per Bloomberg, this represents a 70% year-over-year increase. Acquisitions drove most of the activity, rising roughly 65% year-over-year, while 17 companies went public and raised a combined $6.7 billion. This marks the strongest IPO showing for the climate tech industry since the first half of 2022. The recovery largely traces back to energy, which accounted for more than a third of acquisitions and close to 60% of IPOs in the industry. Three companies captured about 65% of new-offering proceeds, reflecting investor demand for infrastructure capable of supplying AI data centres and broader electrification. The concentration has been framed as a “feast and famine” moment for the green transition: clean energy-related startups can readily find an exit, while areas like sustainable food and agriculture struggle to get traction. The pickup in deals may help sustain the broader ecosystem’s funding cycle, though uncertainty over how long the IPO window runs remains a challenge for potential issuers. 

Will CSRD cost savings claims materialise? 

The EU Commission states the simplified European Sustainability Reporting Standards (ESRS) will reduce reporting costs by more than 30% per company, attributing this largely to a relatively simple calculation of reduction in the standards’ overall length of more than 70%. The figure is based on the European Financial Reporting Advisory Group’s (EFRAG) cost-benefit analysis of the draft revised ESRS. 

Some practitioners have raised questions about how these savings translate into practice. Sarah-Jane Denton, director at the law firm Travers Smith, notes that many individual data points appear to have been consolidated into single headline categories, meaning the volume of data companies are required to gather may not have changed significantly. The Commission’s projected cost savings partly assume that a revised double materiality assessment, by narrowing the scope of what companies must report, will produce meaningfully shorter reports, but Denton cautions that these savings will only materialise if shorter reports also translate into reduced auditing costs, rather than simply less content to audit at the same level of rigour. Under the previous framework, assurance accounted for 40-50% of total reporting costs; the Commission projects a 20% reduction in these costs under the revised ESRS. For more, read here. 

Record year for multilateral development climate financing

A recently released report indicates that multilateral economic development banks contributed $162 billion to climate financing in 2025 Reuters reports. Of the total, roughly $102.6 billion went to developing economies. A breakdown that, according to EIB Vice-President Ambroise Fayolle, “shows that multilateral development banks are delivering at a scale and acceleration of support where it is most needed.” The report also indicates the current rate of financing is on track to achieve the 2030 goals set out at the COP summit in 2024.

While the findings point to climate-related financing trending in the right direction, recent developments from the World Bank have called into question the feasibility of achieving long-term climate financing goals. Last month, the World Bank decided to pull back on its commitment to devote 45% of its financing to tackling climate change. Over the past five years, the World Bank has on average contributed half of the total climate-related financing to developing countries, meaning such a pullback in commitments could have a disproportionate impact on climate financing for those countries. Despite recent developments, Fayolle remains “very optimistic” that the 2030 targets can be achieved based on the latest figures published in the EIB’s report.