Today’s ESG Updates
- Iran Oil Sales to China Unfazed by Sanctions: Iran says oil exports to China will continue even if UN sanctions are reactivated
- BYD Eyes Battery Plant in Europe: Chinese EV giant plans local battery production to support European expansion and bypass EU tariffs
- Dutch Government Offloads TenneT Stake: Netherlands sells 46% of TenneT Germany for $11.3B to global investors, boosting grid funding
- Iberdrola Commits $120B to Grid Shift: Spanish utility to invest heavily in UK and U.S. power networks through 2031 amid renewable pivot
Activated UN sanctions will not disrupt Iran oil sales to China
Iran’s Oil Minister has announced that Iran’s oil sales to China will continue even if UN sanctions are reimposed under a so-called snap-back mechanism. This follows talks between Iran and the foreign ministers of France, Britain and Germany alongside the EU’s foreign policy chief. European powers are demanding that Iran restore access for UN nuclear inspectors to its most sensitive nuclear facilities, address concerns regarding its stock of enriched uranium, and to engage in discussions with the U.S. Sanctions will be triggered on September 27 if no deal is struck. Despite this, Iran’s Oil Minister is confident about the oil sales relationship between Iran and China despite potential restrictions. Data has shown that China accounted for nearly four-fifths of Iranian oil exports in 2024. Companies can keep up with industry developments amidst changing geopolitical landscapes using ESG solutions.
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Further reading: Iran oil sales to China would continue even if UN sanctions activated, oil minister says
BYD’s special adviser says a battery plant in Europe is required for auto production increase
BYD’s special adviser has stated that the company will need to manufacture auto batteries in Europe as its car production in the region is projected to expand in the coming years. Within three years, BYD aims to locally produce all its EVs for sale in Europe to avoid EU tariffs, and plug-in hybrids should dominate their European sales in the short term. The company is building a factory in Hungary that is expected to start output at the end of this year, while one in Turkey is due to start production in 2026 for a total capacity of around 500,000 vehicles a year. BYD is still sitting on the prioritisation of a third assembly plant or a battery making facility as its full focus is currently on launching the Hungarian plant and bringing it to full speed. The company is considering all European countries for that further investment, and interacting with local authorities.
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Further reading: BYD needs battery plant in Europe to support auto production increase, special adviser says
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Dutch government sells 46% of TenneT Germany for $11.3B
The Dutch government is selling 46% of power grid operator TenneT’s German unit to a consortium of investors for up to €9.5B ($11.3B), kicking off the separation from a business it has been trying to divest for years. The sale to a consortium of Dutch pension fund manager APG, Norges Bank and Singapore’s sovereign wealth fund GIC follows increased funding requirements for power lines. Under the agreement, the consortium will take a stake of 46% in TenneT. Germany via a private placement of new shares by the Dutch government. The consortium’s investment will provide the company with €8.5B required to sustain its credit rating and an extra buffer to limit risks for the Dutch state. The Dutch finance minister says that Germany continues to consider a minority stake in the company, and expects more clarity on possible German investments before the end of the year.
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Further reading: Dutch government sells 46% of TenneT Germany to investors for $11.3 billion
Europe’s Iberdrola to invest $120B by 2031 in grids shift
Spanish utility Iberdrola is planning approximately $117B of investments through 2031 as it intensifies its strategic focus on the more regulated business of power grids in countries in Britain and U.S. Europe’s largest utility presented its update and outlook of what to expect in the next few years, which include a big increase in power network investments and a more selective approach to renewable energy generation projects. The company will invest €58B through 2028, two thirds of which in power networks mainly in Britain and the U.S., expecting additional investments of around €45B between 2029 and 2031. For renewables, the largest share of investments will fund offshore and onshore wind projects. As a result of the investments, the value of Iberdrola’s grid assets is expected to reach €70B in 2028 and top €90B by 2031. Companies interested in transitioning renewable energy can rely on ESG tools.
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Further reading: Europe’s top utility Iberdrola to invest $120 billion by 2031 in grids shift
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Oil industry structures Cover Photo Credit: Life of Pix
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