ESG in 5 Sustainability News - 16-12-2025
- Eloise Bell
- Dec 16, 2025
- 3 min read
This week’s ESG in 5 captures how climate ambition is translating into action, from the EU locking in a tougher 2040 emissions target to companies scaling clean power, AI-driven efficiency and carbon removal as the transition accelerates.
EU sets binding 90% emissions-cut target for 2040.
The EU has agreed a legally binding target to cut net greenhouse-gas emissions by 90% by 2040, compared with 1990 levels, marking a major waypoint on its path to climate neutrality by 2050. The deal includes limited flexibility, allowing up to 5% of the reductions to be met through international carbon credits, while maintaining the bulk of action within the bloc. As part of the compromise, the EU also agreed to delay the rollout of the new carbon price on fuels and heating (ETS2) to 2028, after pushback from member states concerned about cost impacts.
95% of business leaders see climate transition as a growth opportunity, HSBC survey find.
A new HSBC survey signals a shift in how corporates frame sustainability: not as a compliance exercise, but as a commercial growth lever. HSBC reported that 95% of business leaders see the climate transition as an opportunity for their company, with 37% calling it a “key strategic area of focus.” The findings also point to rising competitive pressure, with 99% of leaders saying climate transition will be “extremely” or “very” important to supporting competitive advantage over the next three years, highlighting how transition planning is increasingly tied to resilience, innovation and long-term performance.
Microsoft signs 3.6m-ton CO₂ removal deal with Louisiana biofuels and carbon-capture project.
Microsoft has agreed to buy 3.6 million carbon removal credits from a Louisiana biofuels facility owned by C2X, expanding its portfolio of long-term carbon removal contracts as it works toward becoming carbon negative by 2030. Reports say the plant is expected to begin operating in 2029, linking bioenergy production with carbon capture and storage to generate removal credits at scale. The deal underlines the pace at which large buyers are moving to lock in future supply of durable removals, particularly as high-quality capacity remains constrained and competition for verified tonnes intensifies.
Amazon scales AI building controls to cut energy use at grocery fulfilment sites.
Amazon has deployed Trane Technologies’ BrainBox AI, supported by AWS tools, at three North American grocery fulfilment sites to autonomously optimize HVAC and ventilation, reducing energy consumption and associated carbon emissions. Following the pilot, Amazon plans to roll out the platform across more than 30 U.S. sites in its grocery fulfilment and distribution network and expand installations into stores in 2026. The move highlights how operational efficiency, especially in temperature-controlled logistics, has become a near-term decarbonisation lever as retailers juggle emissions targets with rising energy costs and growing demand for faster delivery.
Google and CalSTRS back Fervo’s $462m geothermal funding round to scale “clean firm” power.
Enhanced geothermal developer Fervo Energy has closed a $462 million funding round led by B Capital, with backing including Google and CalSTRS, to accelerate build-out of its flagship Cape Station project in Utah and advance additional projects in its pipeline. Fervo expects Cape Station to reach 500 MW by 2028, positioning it as a major source of 24/7 clean electricity at a moment when grid demand, particularly from data centres, is surging. The raise adds momentum to next-generation geothermal as a scalable “clean firm power” option that can complement intermittent renewables while helping corporate buyers meet 24/7 carbon-free energy goals.
