ESG+ Newsletter – 6 November 2025

Last minute EU climate agreement amid weakening influence of COP 

The EU has committed to a legally binding target of reducing greenhouse-gas emissions by 90% by 2040,  while restating its 2030 target of at least a 55% reduction in net emissions, both compared to 1990 levels. While confirmation of the commitment ahead of COP in Belem, Brazil, could be viewed positively, as Politico reports, critics have begun to poke holes in the latest announcement. Despite the 2040 target being legally binding, the 2035 milestone remains indicative, while the allowance for carbon credits means the actual impact on reductions in emissions could be lower than needed to arrest climate change. As things stand, the EU appears to be signalling that it remains serious about long-term climate neutrality (i.e., net-zero by 2050); however, without strong follow-through in legislation and implementation, headline targets risk being symbolic rather than effective. The announcement came after lengthy negotiations to secure the commitment ahead of COP; however, the influence of climate’s marquee conference appears to be waning, as a result of both pressure from the US and the lack of demonstrable action on the back of previous agreements. RTE.IE reports that fewer than 60 world leaders have confirmed they will attend the event, down from more than double that in Dubai in 2023. COP has often been viewed as effective in engendering collective action, for companies though, continuing to focus on meaningful action on an individual basis remains the most important factor in communicating to key stakeholders on climate action. 

US politicians warn against EU sustainability compliance 

A coalition of 16 state Attorneys General have written letters to major U.S.-based technology companies, opposing CSRD and CSDDD, according to ESG Today. The politicians’ “collective concern” warns that compliance with these European Union regulations could  subject  companies to “lawsuits and government enforcement actions” on American soil. Following recent pushback on sustainability within the US, last month, the administration threatened EU member states with future trade consequences if CSDDD is not repealed or modified. Both EU regulations are expected to be reduced through the European Commission’s Omnibus package. In October, the European Parliament narrowly rejected this simplification initiative, with the stated aim of easing and streamlining corporate sustainability reporting requirements. For now, the Omnibus proposal is stalled, extending regulatory uncertainty for companies preparing to comply with the CSRD and CSDDD frameworks. Meanwhile, the politicians’ letters call on corporations to respond with detailed steps they have taken to reject the frameworks, warning that such regulations undermine American sovereignty by letting European regulators control U.S.-based corporations.  

TNFD publishes nature transition plan guidance 

As reported by Responsible Investor, the Taskforce on Nature-related Financial Disclosures (TNFD) has published guidance for corporates and financial institutions on incorporating nature in transition plans. Draft guidance was first published last year before being tested with 15 organisations across the world. The final guidance aims to incorporate nature into company goals, targets, actions and accountability mechanisms, aiming to halt and reverse biodiversity loss by 2030 and ensure biodiversity is “valued, conserved, restored and wisely used” by 2050. The TNFD aims for the guidance to build on best practice for climate transition plans by incorporating nature-related risks, dependencies and impacts into long-term transition plans. Given the deep dependency of most companies on nature and the intrinsic links between nature loss and the climate crisis, incorporating nature into transition plans should be seen as critical to risk mitigation. 

Corporate coalition pushes to reduce plastic use   

A number of global corporations have pledged to work together to curb plastic use and advocate for stronger global regulation, a positive development in the global push to reduce use of plastics. Following the collapse of UN plastics treaty talks in Geneva this August, in part due to push back from the US,  Reuters  reports on the launch of the  2030 Plastics Agenda for Business  from the Ellen MacArthur Foundation, as a cause for optimism amongst sustainability advocates. The 2030 Plastics Agenda for Business urges collective action across businesses to drive scalable solutions, despite uncertain levels of political support for further action on climate change. While critics warn that credibility now depends on measurable results rather than fresh promises, the initiative’s signatories – representing about one fifth of global plastic packaging – have tripled their use of recycled materials since 2018, offering some optimism that business-led efforts can pave the way for future global regulation. Ahead of 2030, efforts from the top of the corporate food chain, may well spur action further down, with supply chains and smaller companies following suit in setting more meaningful plastic-related targets. 

Green shoots for US clean teach amid AI and data centre surge  

Bloomberg reports artificial intelligence has provided a short-term boost to US clean technology firms struggling with high interest rates and a reduction in federal backing. As demand for energy from data centres has risen meteorically, a diverse set of energy companies have reaped the reward. Critics of the massive increase in energy needs have pointed to the impact on the environment from AI and data centres; however, the surge has attracted new investment into nuclear and geothermal energy, seen as more sustainable solutions to energy needs. The overall outlook for renewables remains uncertain though. The rollback of support for wind and solar in the US has led to more than $22 billion in clean-energy projects being cancelled or scaled back during the first half of the year, despite evidence that solar is the world’s cheapest energy and reports it remains popular elsewhere. As the boom in energy demand grows, industry players such as Gabriel Kra, co-founder of climate tech venture capital firm Prelude Ventures, warn that weakening renewable policies could both undermine the energy supply needed to sustain AI’s expansion and restrict the ability of the US to “produce cheap electricity for those customers who want to pay for it.”  

ICYMI 

• South Korea’s major listed companies have achieved their highest-ever ESG scores, a recent report has  shown.  
• ISSB is pushing for Global “Passporting” of sustainability reports. The ISSB has expanded its jurisdictional working group and has launched new guidance to help countries adopt its reporting standards, aiming to make ISSB-aligned disclosures accepted across borders.
• A new UNEP Finance Initiative report finds insurers have yet to fully integrate nature-related approaches into decision-making, citing data gaps and limited sector-specific guidance.