Today’s ESG Updates
- ESG Commitments Draw Foreign Capital to India: Foreign investors focused on environmental, social, and governance factors are increasingly allocating to India as SEBI expands ESG regulations for the country’s top companies.
- IEA Convenes Emergency Summit Over Iran War Energy Crisis: The agency’s 31 members are weighing a release of emergency oil reserves as merchants avoid the Strait of Hormuz and prices hit $100 a barrel before settling at $88.
- U.S. Solar Installations Drop 14% Under Trump Energy Policy: A Wood Mackenzie and SEIA report found that federal prioritization of fossil fuels drove a significant decline in solar capacity added to the grid compared to 2024.
- South Korea Fines Mercedes $7.6M Over EV Battery Deception: The Korea Fair Trade Commission issued the maximum penalty after Mercedes misled consumers by concealing the use of Farasis Energy batteries in some of its EV models.
ESG commitments bring foreign investors to India
March 10 was the first day of a two-day conclave run by the Indian Venture and Alternate Capital Association (IVCA) in Mumbai. According to fund managers at this finance non-profit, foreign investors with a focus on environmental, social and governance (ESG) factors are looking to India to expand their portfolios. For the past decade, the Securities and Exchange Board of India (SEBI), the country’s market regulator, has expanded the scope of ESG regulations for the country’s top 1,000 listed companies.
Ralph Keitel, head of Fund Investments at responsAbility, said, “India is clearly earning its space in terms of allocations from global investors.” He commented on the country’s past of slow returns, yet remains hopeful about the future. According to the International Monetary Fund, India’s economy is expected to grow 6.5% in the 2024-25 and 2025-26 fiscal years.
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Further reading: India gains favour with global investors on returns, ESG momentum
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IEA considering emergency tap into oil reserves
The International Energy Agency (IEA) called a meeting on Tuesday to address the energy crisis brought on by the war in Iran. The IEA’s 31 members are considering the benefits of tapping into emergency oil reserves as merchants avoid the Strait of Hormuz and oil prices continue to rise. Oil, reaching a high of $100 a barrel, dropped to $88 on Tuesday. President Trump is hinting at a possible end to the war, but fears of higher prices and dwindling supplies persist. In an email, the IEA’s chief Fatih Birol said that the meeting would “assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market.” IEA member countries have emergency oil supplies of over 1.2 billion barrels.
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Further reading: Global energy body convenes summit on unlocking emergency oil reserves
Solar power installations decline in the United States
The Trump administration’s fight against renewable energy has led to a decrease in solar energy installations in the United States. According to a report by Wood Mackenzie, an energy research firm, and the Solar Energy Industries Association (SEIA), the amount of solar power added to the electric grid last year was 14% less than in 2024. Michelle Davis, the head of global solar at Wood Mackenzie, said, “The emphasis in federal energy policy that happened throughout 2025 on fossil fuels and a kind of a move away from renewables definitely made an impact on the solar industry, to be sure.” Similarly, China has decreased solar power projects. Due to new policies, the country could see a 32% drop in installations this year.
As the war in Iran drives up the price of oil and gas, renewable energy sources could see a renewed interest. Darren Van’t Hof, CEO of the SEIA, said, “Deployment is rising fast, but without a course correction from federal actions targeting the industry, Americans will face higher electricity prices and a less resilient energy system.”
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Further reading: U.S. Solar Installations Fell in 2025 as Trump Attacked Clean Energy
Mercedes hit with $7.6 million fine from South Korea’s antitrust regulator
South Korea’s antitrust regulator has fined Mercedes-Benz 11.2 billion won ($7.61 million) over electric vehicle battery misrepresentation. The regulator claims that Mercedes misled consumers through not fully disclosing the battery suppliers for their EQE and EQS EV models. According to the Korea Fair Trade Commission (FTC), Mercedes used China’s Farasis Energy to supply battery cells, despite providing dealerships with claims that all batteries came from China’s Contemporary Amperex Technology Co Ltd (CATL).
Mercedes faced scrutiny in South Korea after one of its EVs fitted with a Farasis battery caught fire in August 2024. The regulator has issued the maximum penalty, equivalent to 4% of the automotive manufacturers’ 2023-2024 sales of Farasis battery-equipped cars. An official for the FTC said that the fine will be split between the company’s German headquarters and South Korean branch.
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Further reading: South Korea fines Mercedes $7.6 mln over misleading EV battery information
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: The Secretariat Building in New Delhi, which houses India’s Ministry of Finance. Cover Photo Credit: Zoshua Colah
