Today’s ESG updates highlight Trump’s return to the White House, signalling potential rollbacks on climate policies. The UAE announced a $54.4 billion investment to meet sustainability goals, while KPMG’s ESG report outlines E.U. compliance challenges for companies. A new nonprofit, “Insurance for Good” aims to support climate disaster recovery, and BBVA has reached €71 billion in sustainable finance, advancing its €300 billion target.
Trump victory signals a shift in U.S. climate policy and ESG stance
After the Republican Victory over Kamela Harris, Donald Trump is poised to return to the White House. Trump has pledged to dismantle Biden’s Inflation Reduction Act (IRA), which supports green technology and expand fossil fuel production under his “drill, baby, drill” policy. Like in 2016, his administration may also distance the U.S. from international climate agreements and elevate corporate ESG responsibilities, potentially reshaping the country’s environmental regulations and global climate role.
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Further Reading: Green economy wary as Donald Trump declares U.S. presidential election win
UAE commits $54.4 bn to sustainable energy for net-zero by 2050
The UAE is set to invest AED200 billion ($54.4 billion) over six years to drive sustainable energy initiatives. Aiming for net-zero emissions by 2050, this investment includes a 25% reduction in carbon intensity for oil and gas. The UAE’s strategy needs to be aligned with regional goals as the country’s leadership becomes increasingly committed to clean energy.
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Further reading: UAE to invest $54bn to meet sustainable energy goals
KPMG report highlights E.U. taxonomy challenges
KPMG’s 2024 report analyses disclosures from 291 European companies, offering insights for U.S. firms expanding globally. Sectors like utilities lead in taxonomy alignment, while consumer goods lag. With expanded E.U. Taxonomy goals, U.S. companies can learn from these gaps to enhance sustainability reporting and prepare for future regulations.
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Further reading: Navigating E.U. Taxonomy
New nonprofit “insurance for good” to tackle climate risks and disaster recovery
The newly launched nonprofit “Insurance for Good” aims to leverage “risk transfer” mechanisms to support social and environmental goals. The organisation, led by Carolyn Kousky, will focus on enhancing disaster recovery, resilience investments, and the energy transition.
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Further reading: Harnessing risk transfer for people and the planet.
BBVA achieves €71 billion until Q3 2024 towards sustainable finance
BBVA has deployed €71 billion in sustainable business by September 2024, a 44% increase year-over-year. This is pushed by the new U.S. sustainability hub in Houston, Texas, advancing the corporate Bank toward its €300 billion target by 2025.
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Further reading: BBVA channeled €71 billion in sustainable business from January to September
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Gage Skidmore
