Today’s ESG Updates
- US Legislation Introduced to Avoid CSDDD: Senator Bill Hagerty introduces the “PROTECT USA” Act to shield US companies from EU regulations with fines up to $1 million.
- Accelleeron Revenue Tops $1 Billion: Accelleeron reports 11.8% growth, driven by demand for sustainable, fuel-efficient solutions.
- IEEFA Calls for Long-Term Climate Risk in Oil & Gas Ratings: IEEFA urges credit agencies to factor energy transition risks into European oil and gas ratings.
- Swedish EV Battery Startup ‘Northvolt’ Files for Bankruptcy: Northvolt files for bankruptcy amid financial and operational challenges.
Senate Republicans launch legislation to protect US companies from EU’s CSDDD
US Senator and Senate Banking Committee member Bill Hagerty has announced the ‘PROTECT USA’ act with new legislation aiming to shield US companies from EU’s Corporate Sustainability Due Diligence Directive (CSDDD) compliance. Companies caught between the conflicting US and EU regulations could face fines of up to $1 million. The bill targets critical sectors, including agriculture and energy. Companies using ESG tools can stay up to date with changing regulations to avoid potential fines.
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Further reading: The LEGO Group supports carbon removal solutions to expand sustainability efforts
Accelleeron revenue tops $1 billion thanks to heightened demand for sustainability
Accelleron reported strong 2024 results, surpassing $1 billion in revenue, a growth of 11.8% from the previous year. Operational EBITA rose 17.4% to $261.9 million, while net income surged 63.1% to $179.4 million. The company proposed a 47% increase in its dividend. The Medium & Low Speed segment saw a 16.3% revenue increase, driven by marine demand and demand for more fuel-efficient and emission-friendly solutions. Accelleron is showing a focus on sustainability with forecasts of 4-6% revenue growth in 2025.
Photo Credit: Accelleron
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Further reading: Accelleron Industries Exceeds $1 Billion Revenue for First Time
IEEFA calls for credit ratings to consider energy transition risks facing the European oil and gas industry
Research from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights that credit rating agencies’ short-term rating horizons limit their ability to assess long-term climate risks facing European oil and gas companies. The report urges agencies to adopt a longer-term view, incorporating revenue measures and energy transition factors. It suggests integrating climate transition plans into ratings to better reflect the sector’s evolving risks. Adjusting methodologies could help investors make more informed, risk-adjusted decisions amidst the energy transition.
Photo Credit: Arvind Vallabh
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Further Reading: Credit ratings have yet to effectively capture energy transition risks facing European oil and gas sector
Swedish EV battery startup ‘Northvolt’ files for bankruptcy
Northvolt AB has filed for bankruptcy in Sweden following a series of financial and operational challenges, including rising capital costs, geopolitical instability, and production ramp-up issues. The collapse follows the growing EV slowdown trend among automakers. Despite exploring avenues to keep the company afloat, the company couldn’t secure enough financial investment. Northvolt hopes its efforts will drive future change in the industry. ESG solutions can provide businesses with tools to help smaller startups succeed in sustainability goals.
Photo Credit: Northvolt
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Further reading: Northvolt files for bankruptcy in Sweden
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Wikimedia Commons
