Today’s ESG Updates
- Investors take charge amid ESG rollback: As ESG rules weaken in the U.S. and Europe, asset owners are pressuring companies to remain accountable for their climate and social commitments.
- Pakistan faces a “crisis of injustice” as climate matters worsen: Pakistan’s minister of climate change warns that the country’s climate disasters are the result of “lopsided green funding.”
- Zambia’s largest solar plant makes its grid debut: The new 100-megawatt solar plant will power the copper mining company First Quantum Minerals.
- EU countries miss climate funding deadline: Failing to submit climate plans will hinder access to the EU’s €86.7B Social Climate Fund, meant to protect low-income households from rising energy costs.
As ESG regulations are pulled back, investors are taking action
Environmental regulations have faced significant pushback in the United States, and ESG regulations have weakened in Europe. Asset owners are now taking steps to ensure companies remain committed to environmental, social, and governance objectives. While reducing investments in non-compliant corporations, investors in northern Europe are also considering legal action. Investors in pension funds, such as Norway’s KLP and the Netherlands’ PME, are actively reevaluating their portfolios, while law firms prepare for increased ESG-related litigation. The European Banking Authority recently cautioned lenders about the possibility of lawsuits if climate targets are missed. Jonathan Gardner, a managing partner at the U.S. law firm of Labaton Keller Sucharow, said, “In today’s environment, the U.S. way of using lawyers to really make your point known is becoming increasingly valuable.”
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Further reading: Asset Owners Angered by ESG Rollback Take Matters Into Own Hands
Lack of green funding at the root of Pakistan’s climate crisis
Based on 2022 data, the Climate Risk Index put Pakistan at the top of its “at risk” countries list in its 2025 report. The country has experienced devastating effects of climate change, with thousands of people dying from floods, severe storms, and heat waves. The climate change minister, Musadiq Malik, claims that these climate disasters are “a crisis of injustice” and the result of “lopsided allocation of green funding.” According to experts, Pakistan requires $40 to $50 billion annually to combat climate change. The country has yet to receive sufficient funds, with Pakistan receiving $10 billion in aid in 2023 and then $2.8 billion the following year. This year, the International Monetary Fund has allocated $1.3 billion for a 28-month climate resilience loan program, which Malik warns is not sufficient.
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Further reading: Pakistan slams climate ‘injustice’ as deadly floods hit country again
100 megawatt solar plant opened for First Quantum Minerals in Zambia
Copper miner First Quantum Minerals (FQM) will now be supplied with electricity from Zambia’s largest solar power plant to date. The new 100-megawatt plant, called the Chisamba project, will help alleviate some of Zambia’s electricity dependence on neighboring South Africa and Mozambique. The country faces a need to diversify its energy sources, as periods of extreme drought have hindered the hydropower sector. Once FQM begins to use solar energy, Zambian citizens will have increased access to electricity. Zambia’s President Hakainde Hichilema worked with PowerChina to launch the solar project on Monday. Plans for an expansion, which would double the electric capacity of the plant, are in the works.
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Further reading: Zambia launches 100 megawatt solar plant supplying First Quantum Minerals
Missed deadlines could delay aid for low-income households
As the EU plans to begin taxing greenhouse gas emissions, countries are scrambling to protect underprivileged people throughout the region. The European Commission has allocated €86.7 billion to the Social Climate Fund; however, countries can only access this money by creating a “social climate plan.” Of the 27 member states, Sweden was the only country to submit a funding plan on time. Although there are no legal requirements to complete a plan, failing to do so could severely delay any future funding. These plans are crucial for financing clean energy projects and helping low-income households and small businesses manage the rising prices of transportation and heating in 2027. Without the other 26 plans, the fund will not become a reality.
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Further reading: EU countries blow climate deadline, putting funds for vulnerable people at risk
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Gábor Molnár
