Today’s ESG Updates
- EU Narrows Rules on Carbon Tax Suspension: Changes aim to reduce policy uncertainty for industry and support long-term decarbonization investment.
- Water Efficiency in Amazon Data Centers More Than Doubles: The company reported 75% progress towards its goal of becoming water-positive by 2030.
- Shell Plans $1bn Offshore Wind Sale: The divestment of wind assets is part of the company’s broader shift back towards oil and gas under CEO Wael Sawan.
- Living Wage Gap Persists in Global Coffee Trade: Major roasters and traders face pressure to reform sourcing practices before new supply chain rules take effect in 2029.
EU reduces loopholes for pausing carbon border levy
The European Union has moved to tighten safeguards around the Carbon Border Adjustment Mechanism (CBAM) in order to boost policy certainty for industry.
The CBAM imposes a carbon cost on imports of emissions-intensive goods, including steel, cement, and fertilizers, to prevent “carbon leakage,” where production shifts to countries with weaker climate rules. EU economy ministers agreed on Friday to narrow the conditions under which the levy could be temporarily paused, limiting suspension to cases of significant price volatility and deviation from long-term averages. The aim is to strengthen confidence for firms investing in low-carbon production.
Most member states backed the change, though Slovakia, Romania, and Lithuania raised concerns over cost impacts. Further negotiations are expected as the EU continues efforts to balance climate policy with industrial competitiveness.
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Further reading: EU to make it harder to suspend carbon fee on imports
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Amazon’s data centers reach 75% of 2030 water-positive target
Amazon announced on Friday that it has made 75% progress towards its “water positive” target, which aims to replenish more water than its data centers use by 2030. The milestone represents a substantial increase from 53% reported in 2024.
The company said it withdrew 2.5 billion gallons (9.5 billion liters) of water across its global data center network in 2025. To offset this, they invested heavily in initiatives to capture water and return it to communities, including more than 50 water replenishment projects expected to deliver over 5.8 billion gallons annually.
Amazon also reported a 52% improvement in water efficiency since 2021, cutting data-center water consumption from 0.25 to 0.12 liters per kilowatt-hour — around 7 times more efficient than the industry average. The gains have been driven by measures including free-air cooling, which now operates 90% of the time, and higher server temperature thresholds that reduce the need for water-based cooling.
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Further reading: Amazon’s data centers are 7x more water-efficient than the industry average. Here’s how we do it.
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
Shell plans $1 billion sale of wind assets as it refocuses on oil and gas
Shell is preparing to sell its offshore wind farm assets in a deal expected to raise more than $1 billion, according to Bloomberg.
The company has reportedly appointed Rothschild & Co and PJT Partners to advise on the sale, which could take place around 2027.
Under chief executive Wael Sawan, the company has consistently scaled back its offshore wind portfolio, instead prioritizing higher-return oil and gas, particularly liquefied natural gas. So far, Shell’s retreat from offshore wind includes selling its 50% stake in SouthCoast Wind Energy in March 2024 and exiting the Atlantic Shores Offshore Wind project in October 2025.
Shell is also reviewing strategic options for Sprng Energy’s renewable power unit, which it bought for $1.55 billion in 2022.
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Further reading: Shell Plans $1 Billion Wind Farms Sale in Latest Renewables Exit
Top coffee companies yet to commit to living wage for farmers as EU due diligence rules loom
None of the world’s 15 largest coffee roasters and traders have committed to ensuring farmers earn a living income, despite an EU law that will make this a legal obligation for large companies from 2029, according to the latest Coffee Barometer report.
The report warns that major industry players, including Nestlé, Starbucks, and JDE Peet’s, remain ill-prepared for the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which will require companies to address human rights and environmental risks in their supply chains or face fines of up to 3% of global turnover.
Around 12.5 million smallholder farmers produce most of the world’s coffee, yet many continue to live on or below the poverty line. According to the report, “pricing structures, contract duration and payment terms are no longer purely commercial decisions; where they are linked to adverse human rights impacts, companies are required to change them”.
The authors argue that the industry’s continued reliance on low-cost commodity purchasing risks undermining other sustainability commitments, calling for fundamental changes to sourcing practices ahead of the 2029 deadline.
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Further reading: Coffee firms ill-prepared for EU rules on living wages, report finds
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Multiple cargo ships crossing the ocean. Cover Photo Credit: Regan Dsouza
