Today’s ESG Updates
- U.S. lawmakers target ESG in pensions: A U.S. bill previously rejected by Biden seeks to limit ESG factors in pension investments.
- InnoEnergy accounces €160B clean tech push: With focus on batteries, solar PV, and hydrogen, InnoEnergy mobilizes €160 billion for clean tech.
- Nvidia hit by China’s new energy efficiency rules: China’s stricter energy efficiency rules threaten chip sales.
- New PRI data reveals ESG investing remains strong: Report shows responsible investing is still growing despite political setbacks.
U.S. lawmakers propose bill to curb ESG investing in pensions
U.S. Republican congressman Andy Barr is introducing a bill to limit ESG considerations in pension fund investments, claiming that the focus needs to shift from “woke investing” to maximizing profits. If enacted, the Ensuring Sound Guidance Act would not prohibit ESG investments but would require firms to disclose any differences in fees and returns between ESG-linked funds and traditional rival indexes. The bill aligns with the Trump Administration’s broader efforts to discourage firms from adopting ESG practices. It was blocked by Biden in 2022 but is likely to pass now as the federal government is dominated by conservative leadership. Companies can stay informed on key regulations with ESG solutions.
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Further reading: Proposed bill would curb ‘woke’ ESG investing by state pension funds, force them to focus purely on profits
InnoEnergy to drive €160B clean tech investment by 2030
Energy investor InnoEnergy announced plans Wednesday to mobilize up to €160 billion for clean tech investment by 2030. This funding will support industrial ventures aligned with the EU’s Clean Industrial Deal and 2040 climate goals. By expanding early-stage investments and launching initiatives in batteries, solar PV, and green hydrogen, InnoEnergy aims to close Europe’s clean tech funding gap. CEO Diego Pavia emphasized the company’s commitment, stating that InnoEnergy is “staying the course, tackling the complexities of industrializing clean technologies head-on.”
Photo Credit: Karsten Würth
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Further reading: InnoEnergy to mobilise up to 160 billion euros in cleantech investment by 2030
Nvidia faces setback as China tightens energy efficiency rules
China’s National Development and Reform Commission has set stricter energy efficiency rules for data centers, driving Nvidia (NVDA) stock to fall Wednesday due to failure to meet new rules. The H20 chip, designed to comply with U.S. export restrictions, reportedly fails to meet these standards, prompting regulators to discourage purchases from major tech firms like Alibaba and Tencent. With 13% of its revenue tied to China, the company risks losing market share to domestic competitors. The new regulation highlights ongoing ESG challenges for the semiconductor industry in balancing energy efficiency, trade policies, and technological advancement.
Photo Credit: Adi Goldstein
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Further Reading: Nvidia’s China Sales Face New Threat: Beijing’s Energy-Use Rules
New PRI data shows responsible investing is not slowing down
Recent data published by Principles for Responsible Investment (PRI) reveals that over the past year responsible investing has continued to grow despite increasing political pushback. The report found that on a global level, investor signatories are expanding their responsible investment practices and asset owners are demonstrating greater action. The data also reveals that ESG commitments in Europe were more prevalent in both 2023 and 2024 compared to North America. Investors cited that their main challenges in aligning portfolios with ESG goals are lack of standardized reporting and difficulty in measuring long-term impact. Investors can use ESG tools to combat these challenges and improve ESG reporting.
Photo Credit: Wikimedia Commons
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Further reading: PRI data shows responsible investing continues to grow
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Connor Gan
