Today’s ESG updates cover the potential impact of the U.S. election outcome on climate policies, Meta’s commitment to a new solar project in Texas to power its data centres, car manufacturers’ push against stricter EU emissions regulations, and BlackRock experiencing significant withdrawals from its ESG funds amid shifting investor sentiment.
Presidential election set to impact ESG and climate policies
With the 2024 US presidential election around the corner, the ESG landscape potentially faces major shifts. In the case of a Kamala Harris administration she is expected to continue Biden-era climate policies. At the same time, a second Trump term would likely roll back ESG-focused regulations and challenge the Inflation Reduction Act. The impending shift in the power balance of Congress could further influence the next administration’s ability to execute ESG and sustainability initiatives.
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Further reading: Election 2024: Harris, Trump present ‘diametrically opposed’ impacts on ESG
Meta partners with ENGIE for 260 mw Texas solar project to power data centre
Meta has signed a power purchase agreement with ENGIE North America to secure energy from the 260 MW Sypert Branch solar project in Texas. Set to begin operations in late 2025, the Texas sunshine adds to Meta’s 12 GW renewable energy portfolio while supporting data centre expansion.
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Further reading: Engie to provide Meta with 260 MW of energy from US solar plant
Czech Republic joins Italy in opposing stricter EU car emissions rules
The Czech Republic joins Italy, to push back against the EU’s upcoming stricter CO2 emission rules, citing challenges for carmakers. Czech Transport Minister Martin Kupka warned that, with falling demand for electric vehicles, they would risk heavy fines trying to meet new emissions regulations in 2025. The Czech car sector, contributing 9% to its national GDP, is heavily dependent on more lenient policies amid Europe’s Green Deal goals.
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Further reading: Czech Republic joining Italy to fight carmakers’ CO2 fines
Blackrock’s ESG funds in Europe see record withdrawal as passive strategies lose appeal
For the first time in years, BlackRock’s ESG funds in Europe faced net outflows, with clients withdrawing $2.2 billion in Q3, according to Morningstar. The drop, driven by reduced interest in passive ESG strategies, reflects wider industry challenges, including market-lagging returns and uncertainty due to regulatory shifts. To stay on top of the latest regulation changes companies are shifting towards AI-powered ESG rating software.
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Further reading: BlackRock affected by ESG fund setback in Europe, say experts
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Ramaz Bluashvili
