Today’s ESG Updates
- BBVA Redirects €29B to Sustainability: BBVA boosted sustainable funding by 55% in Q1, focusing on climate and social projects.
- Trump Proposes $163B Climate Cuts: Proposed U.S. budget slashes funds for renewables, EVs, and EPA programs.
- Ara Partners Raises $800M for Green Projects: Investment firm exceeds target to support industrial decarbonization.
- ESMA Drafts ESG Rating Rules: EU regulator seeks feedback on new ESG rating transparency standards.
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BBVA redirects €29 billion in funding to sustainability
Since January, BBVA has allocated over 29 billion euros to sustainable business practices. This is a 55 percent increase from last year’s first quarter and proves that BBVA is firm in its February commitment to channel over €700 billion into sustainable business from 2025 to 2029. The previous target of €300 billion was achieved in December 2024, a full year earlier than expected. The organization is focusing on efficient water usage, energy savings in homes and transportation, and renewable energy projects, to name a few. Of the 29 billion, 78 percent was channeled into climate change, while 22 percent was allocated toward infrastructure in healthcare, education, and social justice for disadvantaged groups. Like BBVA, companies can redirect funding to sustainable business practices by utilizing ESG strategies.
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Further reading: BBVA channels €29 billion into sustainable business in Q1 2025, up 55 percent year on year
Trump Administration plans to cut $163B for climate
On Friday, the Trump administration proposed $163 billion in budget cuts for 2026. The majority of the cuts, totaling around $15 billion, target renewable energy, including offshore wind projects, and carbon capture. The plan will also cancel $6 billion for EV chargers and $4.5 billion for U.S. Department of Agriculture (USDA) programs. Cuts to the USDA will fall heavily on rural development programs and conservation efforts that benefit farmers. The Environmental Protection Agency (EPA) will see a decrease in its budget of 55%, cutting climate research and grants. The plan aims to redirect funding to the research and development of coal, oil, gas, and nuclear technologies.
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Further reading: Trump budget proposes slashes to renewable energy, farms, EPA
Ara Partners exceed Infrastructure Fund goal by $300M
On Thursday, a global private investment firm, Ara Partners, announced that the organization has raised $800 million for its Infrastructure Fund, exceeding its initial target by $300 million. The organization’s goal is to aid in the worldwide decarbonization of industry. Of their 12 operational assets across Europe and North America, Ara has recently acquired USD Clean Fuels, Lincoln, and Natural World Products. Teresa O’Flynn, a partner and co-head of Infrastructure, stated, “We are focused on building high-value decarbonization assets that future-proof businesses for the modern economy and support the energy transition.’’ The firm, operating in the U.S. and Dublin, is committed to increasing decarbonization in industry sectors ranging from food and agriculture to chemicals and materials.
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Further Reading: Ara Partners Reaches Final Close for Inaugural Infrastructure Fund, Surpassing Target
ESMA publishes Consultation draft on ESG rules
The European Securities and Markets Authority (ESMA) published a Consultation Paper on draft Regulatory Technical Standards (RTS) on Friday, covering the regulation of ESG strategies. The draft includes information and ratings that should be publicly disclosed, safeguards to mitigate conflicts of interest, and the information that should be provided in applications. The purpose of this Consultation Paper is to increase the transparency of ESG ratings, ensuring uniform honesty and compliance. Stakeholders are welcome to contribute comments to the draft until 20 June 2025. They aim to submit the final report by October 2025. Companies can ensure they comply with all ESG strategies presented in this Consultation Paper by utilizing ESG tools.
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Further reading: ESMA consults on rules for ESG Rating Providers
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Colin Watts
