Weekly ESG News: Financial Services and Insurance Industry (46/2024)
News in the spotlight: Air Canada invests in SAF, cutting CO2 and advancing its net-zero goal.
Products and Services
Ahold Delhaize Accelerates Net-Zero Goals with Major Solar Energy Deal in Spain
Ahold Delhaize has signed a Virtual Power Purchase Agreement (VPPA) with Spanish renewable energy company Bruc to support the construction of five solar power plants in Seville, Spain. The deal will supply 460 GWh of power annually, covering 30% of the company’s European electricity needs and advancing its goal to achieve net-zero carbon emissions by 2040. Construction begins this year, with energy generation slated for 2026, and Ahold Delhaize will contract 90% of the plants’ capacity for 15 years. The company has already reduced its European electricity emissions by two-thirds through measures like LED lighting, heat pumps, and improved insulation, aiming to eliminate electricity emissions by 2035. CEO Frank Sluis emphasized the agreement’s role in accelerating the company’s climate agenda.
Air Canada Secures 78 Million Liters of Sustainable Aviation Fuel in Milestone Deal
Air Canada has partnered with Neste to purchase 77.6 million liters of Sustainable Aviation Fuel (SAF), marking the airline’s first commercial SAF import into Canada. The fuel, set to be delivered starting December, will contribute to Air Canada’s sustainability goals, including achieving net-zero greenhouse gas emissions by 2050 and reducing flight-related emissions by 20% by 2030. Produced from 100% renewable waste materials, Neste’s SAF reduces lifecycle emissions by up to 80% compared to fossil fuels. CEO Michael Rousseau highlighted the need for domestic SAF production to meet Canada’s long-term goals, urging government support for a competitive SAF industry.
NitroVolt Secures €3.5 Million to Revolutionize Fertilizer Production with Green Ammonia
Danish startup NitroVolt has raised €3.5 million in seed funding to commercialize its Nitrolyzer system, which produces “green ammonia” directly on farms using air, water, and renewable electricity. Traditional ammonia production, a major component in fertilizers, contributes 2% of global greenhouse gas emissions and relies on centralized facilities, adding distribution-related emissions. NitroVolt’s decentralized solution eliminates fossil fuels, offering a carbon-free alternative that is cost-competitive with conventional methods. The funds will be used to build a demonstration unit. Backed by investors like BackingMinds, EQT Foundation, and EIFO, NitroVolt aims to reduce CO2 emissions and enhance food security in at-risk regions.
Sympower Secures $23M to Scale Energy Flexibility and Battery Storage Solutions
Amsterdam-based Sympower has raised $23 million in a Series B1 funding round to expand its energy management and virtual power plant technologies across Europe. The funds will support the rollout of battery energy storage systems (BESS), mergers and acquisitions, and scaling operations. Sympower’s solutions optimize electricity supply and demand, reducing grid pressure and carbon emissions by reallocating power from underutilized sources. Active in markets such as the Nordics and Greece, the company manages over 2GW of flexible resources. CEO Simon Bushell highlighted the growing demand for energy flexibility as a key enabler of Europe’s energy transition.
Leadership Announcements
Denham Capital Appoints Justin DeAngelis as Global Head of Sustainable Infrastructure
Denham Capital has appointed Justin DeAngelis as its new Global Head of Sustainable Infrastructure. DeAngelis, who has been with Denham since 2006, most recently served as Partner and Co-Head of Denham Sustainable Infrastructure (DSI), helping grow the platform to manage $3.4 billion in assets. In his new role, he will lead the strategic direction of the department, focusing on private equity and credit investments in sectors that support the transition to a low-carbon economy, including renewable energy, clean transportation, and digital infrastructure. Stuart Porter, CEO of Denham Capital, emphasized DeAngelis’ key role in DSI’s success and growth, while DeAngelis expressed excitement about continuing DSI’s commitment to sustainable infrastructure investments.
Regulations and Law
UK Takes Historic Step Toward Climate Goals with Coal Mine Ban
The UK government has announced plans to legislate a ban on new coal mine licenses, solidifying its leadership in global coal phase-out efforts. This follows the closure of the UK’s last coal plant in September, marking a significant shift from coal, which supplied 40% of the country’s electricity in 2012. The move supports the UK’s COP29 pledge to cut greenhouse gas emissions by 81% by 2035 and aligns with new climate initiatives, including onshore wind expansion, investments in clean energy projects, and carbon capture development. Energy Minister Michael Shanks emphasized the UK’s role in setting a global example for phasing out coal, the largest source of energy-related CO2 emissions.
EU Lawmakers Delay and Amend Deforestation-Linked Product Ban
Lawmakers in the European Parliament voted to delay the EU Deforestation Regulation (EUDR) by one year, with amendments that ease some of its requirements. The law, designed to ensure products imported or exported from the EU do not contribute to deforestation, will now be applicable from the end of 2025 for large companies. The regulation mandates companies to prove that their products, such as palm oil, beef, and timber, are sourced from land free of deforestation since 2020. Environmental groups criticized the vote, arguing it weakens the law, while business groups supported the delay, citing concerns over readiness. The legislation will now proceed to further negotiations before becoming law.
GRI and CDP Forge Partnership to Simplify Sustainability Reporting
The Global Reporting Initiative (GRI) and CDP have entered into a cooperation agreement to align their sustainability reporting frameworks, making it easier for companies to report environmental data. The partnership aims to integrate GRI’s widely-used standards with CDP’s environmental disclosure platform, streamlining the process for companies to provide actionable and comparable data on climate change, biodiversity, and water security. This collaboration will include joint mapping efforts and closer alignment between the two organizations’ reporting standards. The move is expected to support businesses in meeting global transparency and accountability standards, enhancing climate action.
CDP Enhances Alignment with European Sustainability Standards
CDP and the European Financial Reporting Advisory Group (EFRAG) have announced a significant step toward greater interoperability between CDP’s disclosure platform and the EU’s European Sustainability Reporting Standards (ESRS). This alignment aims to ease the reporting burden for companies and help streamline disclosures across multiple sustainability frameworks. The collaboration has already revealed substantial commonality between CDP’s questionnaire and the ESRS climate standard (ESRS E1), making it easier for companies to meet both CDP and ESRS requirements. This effort is part of CDP’s ongoing strategy to create a more efficient global environmental disclosure system. In 2023, over 23,000 companies disclosed through CDP, covering 66% of global market capitalization. The organizations will continue to refine their alignment, with detailed mapping of CDP and ESRS E1 set for release in early 2025.