Weekly ESG News: Financial Services and Insurance Industry (49/2024)
News in the spotlight: The European Commission's new FAQ simplifies the EU Taxonomy, aiding businesses and investors in meeting sustainable finance standards.
The European Commission released an FAQ to clarify the EU Taxonomy, a framework defining sustainable economic activities aligned with environmental goals like climate change mitigation. The guide addresses DNSH criteria, reporting standards, and interoperability with CSRD to support companies and investors in the green transition.
Products and Services
Zitara Secures $17 Million to Advance Battery Optimization Software
Battery software startup Zitara has raised $17 million in Series AA funding to enhance its advanced solutions for optimizing battery performance, lifespan, and sustainability. Leveraging AI and machine learning, the San Francisco-based company focuses on improving grid-scale energy storage systems, a critical component for renewable energy integration. The funds will support partnerships with power producers, utilities, and battery manufacturers while expanding Zitara’s engineering and AI capabilities to accelerate product development. CEO Shyam Srinivasan highlighted the company’s commitment to driving sustainability by maximizing battery efficiency and reducing costs. Investors include Salesforce Ventures, Chevron Technology Ventures, and others, underscoring Zitara’s potential to transform the energy storage market.
Heirloom Secures $150 Million to Scale Direct Air Capture Technology
Carbon removal pioneer Heirloom has raised $150 million in Series B funding to advance its commercial Direct Air Capture (DAC) technology. DAC, a critical tool in achieving net-zero goals, extracts CO2 directly from the atmosphere, with Heirloom leveraging an innovative limestone-based process powered by renewable energy to remove and store carbon permanently underground. The funds will help reduce costs, expand projects, and prepare for larger infrastructure investments. Backed by major industrial players like H&M Group and Japan Airlines, along with existing investors such as Breakthrough Energy Ventures, Heirloom aims to deliver the most affordable DAC solution. CEO Shashank Samala emphasized the company’s focus on affordability and scaling the technology to drive meaningful climate impact.
Regulatory & Law
EU Lawmakers
Approve One-Year Delay for Deforestation Regulation
The EU has provisionally agreed to delay the implementation of its Deforestation Regulation (EUDR) by 12 months, giving large companies until December 2025 and small businesses until June 2026 to comply. The law, which aims to ban products linked to deforestation from EU markets, will require companies to prove their goods are deforestation-free and trace them to their production origin. Proposals to create a “no risk” category exempting low-risk countries and extending the delay further were rejected, preserving the regulation’s stringent compliance requirements. The European Commission described the delay as a balanced approach, ensuring smoother implementation while maintaining the law’s integrity. The agreement still awaits formal endorsement by the European Parliament and Council.
European Commission Issues EU Taxonomy FAQ to Aid Investors and Companies
The European Commission has released a comprehensive FAQ document to support investors and companies in implementing the EU Taxonomy, a classification system for sustainable economic activities. The Taxonomy defines activities that contribute to six environmental objectives, including climate change mitigation, biodiversity protection, and pollution prevention, ensuring they Do No Significant Harm (DNSH) to other objectives. Effective since 2022 for climate-focused goals and expanded in 2024 to other environmental objectives, the Taxonomy aims to harmonize sustainable finance practices across the EU. The FAQ addresses general requirements, interoperability with CSRD standards, reporting obligations, and DNSH criteria. Commissioner Mairead McGuinness emphasized the initiative’s role in enhancing the framework’s usability and supporting sustainable transitions.
Leadership Announcement
Sebastien Blanc Appointed CEO of Carbon Accounting Platform Normative
Normative, a leading carbon accounting software provider, has appointed Sebastien Blanc as its new CEO. Blanc takes over from Kristian Rönn, who co-founded the company in 2014 and led it for nearly 11 years. Blanc, with over 20 years of experience in the tech industry, previously served as CEO of Skimlinks and Lengow. He aims to continue Normative’s growth and deepen its impact on climate change, emphasizing the company’s role in providing actionable carbon data. Rönn expressed pride in Normative’s journey, having pioneered SaaS-based carbon accounting to make sustainability measurable and achievable.
Mirova Appoints Raphaël Lance to Lead New Real Assets Platform
Mirova, a sustainability-focused investment manager, has announced the creation of a new real assets platform, consolidating its Energy Transition Infrastructure, Natural Capital, and Private Equity businesses. Raphaël Lance, who currently leads the Energy Transition Infrastructure Funds, will head this new platform. This strategic move aligns with Mirova’s 2030 roadmap, aiming to position the firm as a leader in impact private assets. Mirova CEO Phillipe Zaouati expressed confidence in Lance’s leadership, noting his significant experience in managing energy transition funds since joining the firm in 2009. Lance will continue overseeing the Energy Transition Infrastructure Funds and will now also lead the combined real assets platform, which includes almost 80 investment specialists.
ESG Data and Analytics
Normative Unveils CSRD Compliance Solution to Simplify Sustainability Reporting
Carbon accounting software provider Normative has launched a new solution to help businesses meet the EU’s Corporate Sustainability Reporting Directive (CSRD) requirements. The CSRD significantly expands sustainability reporting to over 50,000 companies, introducing detailed standards on environmental, social, and governance impacts. Normative’s offering combines AI-powered carbon calculations with GHG-protocol-certified Climate Strategy Advisors, streamlining data collection, compliance, and reduction planning to cut costs and energy use. New CEO Sebastien Blanc highlighted the tool’s potential to turn regulatory compliance into a driver of positive change and competitive advantage, reinforcing Normative’s leadership in carbon accounting innovation.
Speeki Introduces AI Tool for Streamlined Carbon Reporting
Speeki has unveiled Carbon Lens, an AI-driven solution to automate data collection for Scope 1, 2, and 3 greenhouse gas emissions and simplify carbon management. Designed to address the complexities of emissions calculations and regulatory compliance, the tool enables businesses to track their carbon footprint in line with global standards like the GHG Protocol. Key features include automated data integration, auditability for verification, and compatibility with reporting frameworks such as ESRS, IFRS S2, and GRI. CEO Scott Lane emphasized the tool’s role in helping companies achieve their sustainability goals by providing actionable insights and ensuring compliance. Carbon Lens reflects Speeki’s commitment to supporting businesses in their climate action initiatives.