Today’s ESG Updates
- World’s Largest Pension Fund Rethinks ESG Strategy: Japan’s $1.5 trillion GPIF is reviewing its sustainability benchmarks after years of weak returns.
- Shell Warns Trump’s Attack on Wind Energy Harms Investment: Shell USA says halting permitted offshore wind projects undermines investor confidence.
- EU Moves to Curb ‘Forever Chemicals’ in Firefighting Foams: New REACH restriction targets PFAS in foams to protect people and the environment.
- Faroe Islands on Track to Hit 100% Renewables by 2030: Minesto’s underwater “kite” turbines could supply a stable baseload for the isolated grid.
Japan’s $1.5 trillion pension fund shifts towards impact investing
Japan’s $1.8 trillion Government Pension Investment Fund (GPIF) is exploring a shift toward impact investing, signaling a potential transformation in how institutional investors integrate sustainability. At least four other Japanese pension funds are revising their policies to follow suit, aligning with the government’s push to tackle societal challenges such as aging demographics and gender inequality. GPIF President Kazuto Uchida said that an investment approach targeting environmental and social outcomes ultimately strengthens economic growth. Japan’s impact investing market grew 150% last year to $117 billion, reflecting global momentum toward measurable sustainability outcomes. The recent announcement follows similar strategies by Europe’s largest funds, ABP and PGGM, and could reshape Asia’s investment landscape and approach to tackling the UN’s Sustainable Development Goals.
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Further reading: World’s Biggest Pension Fund Puts Impact Investing on the Agenda
Shell President says Trump’s stop to offshore wind damages energy investment
Shell U.S. president, Colette Hirstius, criticized the Trump administration’s decision to halt permitted offshore wind projects, calling it “very damaging” to investor confidence. She warned that regulatory instability could deter both renewable and fossil energy investments, urging the establishment of a predictable permitting system. While Shell has rolled back some of its transition targets, the company continues to pursue selective renewable projects and plans to bid for new oil leases under Trump’s reinstated schedule. Hirstius also reaffirmed Shell’s commitment to diversity, equity, and inclusion (DEI) despite Trump’s policy rollbacks. The president’s remarks reflect the growing tension between short-term policy changes and long-term clean energy planning in the energy sector.
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Further reading: Shell says Trump administration’s attacks on wind projects harm investment
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EU bans ‘forever chemicals’ in firefighting foams to curb toxic pollution
The European Commission has adopted new restrictions on PFAS, also known as “forever chemicals,” in firefighting foams under the REACH Regulation, a key milestone in reducing toxic pollution. Firefighting foams are a significant source of PFAS, emitting approximately 470 tonnes per year and contaminating soil, groundwater, and drinking water. As research on PFAS grows, governments are under increasing pressure to contain these forever chemicals, which now contaminate our drinking water and, consequently, our bodies. The new regulation, which passed EU Parliament and Council scrutiny last Friday, introduces transition periods of 1–10 years depending on sector needs. The measure supports the EU’s broader zero-pollution strategy and ensures a full shift to PFAS-free foams, safeguarding both firefighters’ health and the environment.
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Further reading: Commission restricts the use of ‘forever chemicals’ in firefighting foams
The Faroe Islands pursue 100% renewable power with tidal energy innovation
The Faroe Islands plan to reach 100% renewable electricity by 2030, a unique challenge given their isolation from mainland grids. Local utility SEV is betting on tidal power from Swedish company Minesto, whose underwater “kite” turbines could supply up to 40% of the islands’ electricity. Wind and hydro remain key components, but tidal energy offers a predictable, year-round baseload power source that reduces dependence on imported oil. With 270 days of rain and turbulent seas, the Faroes’ success could serve as a blueprint for other remote island regions. The 2030 target showcases how small nations are driving global energy innovation.
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Further reading: Faroe Islands: 100 % Renewable Goal With Global Relevance
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Tokyo, December 16, 2017. Cover Photo Credit: Louie Martinez
