ESG in 5 - Market Update & Sustainability News - 01-04-2025
- Anthony Walters
- Apr 1
- 4 min read
Welcome to this week’s ESG Market Update & Sustainability News, where we explore the latest developments shaping responsible investing and environmental progress. Despite a challenging week for markets, with the MSCI ACWI Universal posting a -0.54% return, momentum in the sustainability space remains strong. From corporate climate commitments to clean energy transitions, this update highlights key moves driving ESG strategies forward.
Market Recap
Both ESG and broader market strategies were challenged, as the MSCI ACWI Universal led with a return of -0.54% for the week.
Meta Signs 10-Year Carbon Removal Deal
Forest investment and management firm EFM has announced a new long-term agreement with Facebook, Instagram, and WhatsApp owner Meta for the delivery of 676,000 tonnes of carbon removal credits through to 2035. This will be generated through the transition of U.S. forestland to “climate-smart management.”
EFM has acquired more than 200,000 acres of forestland and has approximately $490 million of assets under management and advisement.
The new agreement will support the transition of the Olympic Rainforest, a 68,000-acre coastal temperate rainforest located on the Olympic Peninsula of Washington state.
Kleenex switches to 100% renewable energy at manufacturing site
Kimberly-Clark has announced that its factory in Koblenz, Germany is on track to move to 100% renewable energy by 2029, making it the company’s first tissue manufacturing site worldwide to achieve that goal.
According to Kimberly-Clark, the achievement will support its goal to reduce its Scope 1 and 2 emissions by 50% by 2030. The company said that the move to renewable energy at the plant, which manufactures toilet paper, hand towels and wipers under brands such as Kleenex, will reduce carbon emissions by 50,000 tons per year.
Airbus Reconfirms Commitment to Develop Hydrogen-Powered Aircraft
Aerospace giant Airbus has stated that it has “reconfirmed its commitment” to develop a commercially viable hydrogen aircraft, and selected fuel cell technology as the propulsion method for the new aircraft.
The announcement, made at the company’s 2025 Airbus Summit, comes shortly after Airbus revealed that it had delayed its plans to develop a hydrogen-powered aircraft by 2035, due to slower than anticipated development of the hydrogen ecosystem and technologies.
The aviation industry accounts for approximately 2-3% of global greenhouse gas (GHG) emissions.
TotalEnergies, Equinor, Shell to Invest Over $700 Million to Expand Carbon Storage Project
Energy giants TotalEnergies, Equinor and Shell announced plans to invest $714 million USD to expand the Northern Lights carbon transportation and storage project in Norway. The move will more than triple the project’s capacity from 1.5 million to more than 5 million tons of CO2 per year, from 2028.
Facilities will include a terminal that will receive liquid CO2 captured from industrial sources, a 100 km subsea pipeline to transport the CO2 to an offshore storage location, and subsea injection facilities for permanent storage 2,600 meters below the seabed.
Key
ACWI = All Country World Index
MSCI ACWI Universal
The MSCI ACWI Universal Index is built on the MSCI ACWI Index and includes large and mid-sized companies from 23 developed and 24 emerging market countries. It aims to highlight companies with strong and improving ESG (Environmental, Social, and Governance) profiles, while making minimal changes to the original index.
MSCI ACWI Focus
The MSCI ACWI Focus Index is built on the MSCI ACWI Index and includes large and mid-sized companies from 23 developed and 24 emerging market countries. It aims to boost exposure to positive ESG (Environmental, Social, and Governance) factors while maintaining similar risk and return characteristics to the original index. The index selects companies with high ESG ratings in each sector, excluding tobacco and controversial weapons companies.
MSCI ACWI
The MSCI ACWI captures large and mid-cap representation across Developed Markets (DM) and Emerging Markets (EM) countries. The index covers approximately 85% of the global investable equity opportunity set.
MSCI ACWI Screened
The MSCI ACWI Screened Index is based on the MSCI ACWI Index and includes large and mid-sized companies from 23 developed and 24 emerging market countries. It excludes companies involved in controversial weapons, tobacco, palm oil, arctic oil & gas, thermal coal, and certain fossil fuels. It also avoids companies not complying with UN Global Compact principles or involved in significant ESG controversies. Additionally, the index aims for at least a 30% reduction in carbon emissions compared to the original index.
MSCI ACWI Selection
The MSCI ACWI Selection Index is based on the MSCI ACWI Index and includes large and mid-sized companies from 23 developed and 24 emerging market countries. It focuses on companies with strong ESG (Environmental, Social, and Governance) criteria, excluding those involved in certain business activities or ESG controversies. The index aims to match the sector weights of the original index and targets 50% market capitalisation coverage in each sector, selecting companies based on their ESG ratings and trends.
Sources.
Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever)
Market recap Data sourced from FE FundInfo (quoted in Pounds Sterling).
Meta Signs Ten-Year Forestry Management Carbon Removal Deal, by ESG Today, 01/04/25
Kimberly-Clark to Reach 100% Renewable Energy at Kleenex Manufacturing Site by ESG Today, 26/03/25
Airbus Reconfirms Commitment to Develop Hydrogen-Powered Aircraft, by ESG Today, 26/03/25
TotalEnergies, Equinor, Shell to Invest Over $700 Million to Expand Carbon Storage Project, by ESG Today, 28/03/25
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