ESG in 5 Sustainability News - 13-10-2026

Oct 13

3 min read

This week’s ESG in 5 covers South Korea’s $745bn green transition strategy, Scotland’s new paper-based bottle factory and HSBC’s ESG-linked business loans. Plus, a US shareholder voting investigation and a $2bn emerging-markets investment initiative.

South Korea unveils $745bn green transition strategy.

South Korea has announced a ten-year green transition strategy that aims to mobilise 1,000 trillion won (approximately $745 billion) by 2035 to reduce emissions while supporting industrial growth. Known as K-GX, the plan focuses on decarbonising major industries, including steel, petrochemicals and cement, alongside expanding renewable energy and cleaner transport.

The government is targeting 100 GW of renewable energy capacity by 2030, with further support planned for hydrogen-based steelmaking and electric vehicles. Funding is expected to come through public spending and climate finance, with additional private investment encouraged. The strategy sets out long-term investment and capacity targets, rather than funding already deployed or emissions reductions achieved.

Scottish factory opens to produce paper-based bottles.

UK packaging company Pulpex has opened its first commercial-scale paper-based bottle factory near Glasgow, moving its technology beyond pilot production. The facility has an initial capacity of up to 40 million bottles annually and is expected to create approximately 39 skilled manufacturing jobs. Pulpex aims to expand production through licensed manufacturing partners internationally.

The bottles are made from wood pulp and, according to Pulpex, are designed to be recycled through existing household paper and cardboard collections. The company says more than 90% of the facility's initial available capacity for this financial year has been sold. Mineral water supplier Purely Scottish and household cleaning brand smol are among the businesses preparing to introduce the packaging.

HSBC links European business loans to ESG ratings.

HSBC has introduced Sustainability Improvement Loans for eligible small and medium-sized businesses across continental Europe, allowing borrowing costs to change according to a company's external ESG rating. Assessments can come from providers including EcoVadis, CDP and Inrate, depending on local availability. The loans can be used for general business purposes rather than exclusively funding environmental projects.

Ratings are reviewed annually, with businesses potentially benefiting from lower borrowing costs when agreed improvement thresholds are met. Conversely, declining scores could result in higher costs. Originally launched in the UK in 2024, the product offers a simpler alternative to traditional sustainability-linked lending, although improved ESG ratings do not necessarily demonstrate reductions in environmental impact.

US regulator closes climate voting investigation.

The US Securities and Exchange Commission has decided not to pursue enforcement action following an investigation into shareholder voting at ExxonMobil's 2021 board election. The inquiry examined whether investors associated with the Climate Action 100+ initiative had coordinated their support for directors backed by activist investor Engine No. 1.

Although no violations were established, the SEC raised concerns about coordinated shareholder activity and warned that certain arrangements could trigger additional ownership reporting requirements. The investigation found no evidence that BlackRock or State Street had agreed to vote in particular ways. The decision raises questions for asset managers about how they engage collectively with companies on climate-related risks while meeting securities regulations.

IFC and BlueOrchard target $2bn for emerging markets.

The International Finance Corporation (IFC), part of the World Bank Group, and Schroders-owned investment manager BlueOrchard have announced a partnership to channel institutional capital into emerging markets. Their new private debt investment vehicle is targeting up to $2 billion in commitments, with a $300 million first closing anchored by Japan's Tokio Marine Group.

The initiative is designed for institutional investors, including pension funds and insurers, seeking exposure to private lending in markets where businesses can struggle to access long-term finance. Its ongoing structure allows capital to be reinvested into new opportunities. The partners aim to support business growth, employment and economic development, although the wider $2 billion remains a fundraising target rather than capital already invested.