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2025 Expected to Be Second Hottest Year on Record

Europe’s climate monitor released data that the global average temperature from January to November was 1.48 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels

bySarah Perras
December 10, 2025
in Business, ESG FINANCE, ESG News, Sustainable Finance
ESG News regarding 2025 as second hottest year on record, EU weakening climate laws, Tesco’s nature partnerships, and the Commission’s cleantech investment in Italy

Global temperatures are nearing a point of no return, and climate action is more important than ever.

Today’s ESG Updates

  • 2025 Approaches 1.5°C Climate Threshold: Global temperatures are on track for the second-hottest year on record.
  • EU Scales Back Green Reporting: EU lawmakers approved major cuts to corporate sustainability reporting rules.
  • Tesco Expands Nature Projects: Tesco launched new partnerships to restore marine ecosystems and advance regenerative farming.
  • Italy Secures €1.5B for Cleantech: The European Commission approved Italy’s €1.5B scheme to boost domestic cleantech manufacturing.

2025 expected to be the second-hottest year as global temperatures near critical threshold

The year 2025 is on course to become the second hottest on record, according to the EU’s Copernicus Climate Change Service. From January to November, temperatures averaged 1.48°C (2.7°F) above pre-industrial levels, making it “virtually certain” that 2025 will end as the second or third warmest year ever measured. While the year may not exceed the 1.5°C threshold, the average temperature across 2023–2025 is expected to surpass it. Scientists warn that surpassing the threshold will have severe climate impacts. Samantha Burgess, Deputy Director of the Copernicus Climate Change Service, said, “These milestones are not abstract – they reflect the accelerating pace of climate change, and the only way to mitigate future rising temperatures is to rapidly reduce greenhouse gas emissions.” Global climate action remains fractured; COP30 ended without an agreement to phase out fossil fuels. Scientists emphasize that adaptation efforts must accelerate, as temperatures show no sign of declining. 

***

Further reading: 2025 on track to tie for second hottest year on record, EU monitor says


EU cuts corporate green reporting rules under controversial deal

ESG News regarding 2025 as second hottest year on record, EU weakening climate laws, Tesco’s nature partnerships, and the Commission’s cleantech investment in Italy
These green cuts come as the effects of climate change worsen in the EU. Photo Credit: Marius

EU institutions have decided to scale back environmental reporting requirements, exempting over 80 percent of European companies from existing obligations. The agreement marks a significant win for Commission President Ursula von der Leyen’s push to cut red tape and stimulate competitiveness. However, it triggered major political tensions in Brussels, as the center-right European People’s Party (EPP) aligned with far-right groups to secure the outcome. The new omnibus law rolls back parts of the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). Under the new deal, only large companies will be required to disclose supply chain data, and the requirements for transition plans have been removed. Supporters argue this will reduce costs and increase economic growth, while critics warn that it weakens environmental and human rights safeguards. A final European Parliament vote on December 16 will determine whether the deal becomes law.

***
Further reading: EU closes deal to slash green rules in major win for von der Leyen’s deregulation drive


Featured ESG Tool of the Week:
Klimado – Navigating climate complexity just got easier. Klimado offers a user-friendly platform for tracking local and global environmental shifts, making it an essential tool for climate-aware individuals and organizations.

Tesco launches new partnerships to enhance biodiversity

ESG News regarding 2025 as second hottest year on record, EU weakening climate laws, Tesco’s nature partnerships, and the Commission’s cleantech investment in Italy
Tesco’s Nature Programme, launched in 2023, is already working with 130 farms on five environmental projects. Photo Credit: Shashank Verma

Tesco has announced two new nature-focused partnerships to enhance biodiversity and improve environmental practices across its global supply chains. The retailer partnered with the Sea Ranger Service to restore seagrass off the coast of the Netherlands, an important fishing area for haddock, cod, plaice, and other wild fish species. The project supports the recovery of marine ecosystems while providing training and job opportunities for young people.  In Côte d’Ivoire, Tesco is collaborating with chocolate supplier Baronie-Cemoi and the Earthworm Foundation, a global climate non-profit, to promote regenerative agriculture among cocoa farmers. The initiative builds on Baronie-Cemoi’s Transparence Cacao programme, which already focuses on product quality, livelihoods of farmers and workers, and traceability. Companies focused on climate action and nature-focused partnerships can look to ESG solutions for guidance. 

***

Further reading: Tesco launches new nature partnerships to boost biodiversity in its supply chain


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Commission approves €1.5 billion Italian scheme to boost cleantech manufacturing

ESG News regarding 2025 as second hottest year on record, EU weakening climate laws, Tesco’s nature partnerships, and the Commission’s cleantech investment in Italy
The Commission found that the Italian scheme was necessary to boost the net-zero transition. Photo Credit: Ivan Oštrić

The European Commission approved a €1.5 billion investment scheme in Italy designed to expand clean technology manufacturing and support the EU’s transition to a net-zero economy. Authorized under the Clean Industrial Deal State Aid Framework (CISAF), the Italian State aid scheme will be co-financed by the Recovery and Resilience Fund. The scheme will provide support for investments through subsidised loans and grants, with the aim of adding production capacity for net-zero technologies. Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said, “This scheme will help add capacity for cleantech manufacturing in Italy by supporting key investments. The Italian government’s aid, combined with funds from the RRF, help us reach the goals of the Clean Industrial Deal, while keeping any potential competition distortions to a minimum.”

***

Further reading: Commission approves €1.5 billion Italian State aid scheme to support cleantech manufacturing capacity, contributing to Clean Industrial Deal objectives


Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Earth burning. Cover Photo Credit: Javier Miranda

Tags: cleantechCSDDDCSRDEUglobal temperaturesGlobal warmingitalyTesco
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