News in the spotlight: Iberdrola Raises €750M in World’s First Green Bond Meeting EU and ICMA Standards
Iberdorla Green Bond launch: Iberdrola has made a significant stride in sustainable finance by issuing the world’s first green bond aligned simultaneously with the European Union’s new European Green Bond (EuGB) standard and the International Capital Market Association’s (ICMA) Green Bond Principles.
Products and Services
From Mining Waste to Green Transition: Exterra Raises $14M for Next-Gen Materials
Materials technology startup Exterra has secured $14 million in funding to scale its process of converting mining waste into usable materials critical for the energy transition. The company focuses on extracting valuable minerals, such as lithium and nickel, from discarded mine tailings—helping to address raw material shortages for clean technologies while reducing environmental impacts of mining. The investment will support research, pilot projects, and commercial scaling of Exterra’s circular economy solution. As demand for energy storage and electrification grows, the ability to recover metals from industrial waste offers a more sustainable and resilient alternative to traditional mining. The initiative also aligns with policy trends emphasizing resource efficiency, supply chain security, and low-carbon innovation. Exterra’s model presents a promising intersection of waste remediation and green industrial development.
Adaptation could help companies gain a competitive edge
JP Morgan Chase has published new research arguing that companies proactively investing in climate adaptation stand to gain a competitive edge. The report emphasizes that physical risks such as floods, heatwaves, and droughts pose increasing threats to global supply chains, assets, and operations. Businesses that adapt—by fortifying infrastructure, diversifying suppliers, or modifying operations—can reduce exposure, improve resilience, and unlock growth opportunities. The bank also suggests that adaptation measures can boost innovation and enhance stakeholder trust, particularly as regulators and investors demand better climate risk disclosure. The analysis reframes adaptation not merely as risk management but as a strategic lever for value creation in a volatile climate environment. As climate impacts intensify, JP Morgan anticipates that adaptation will become a defining element of corporate sustainability leadership.
EMF finalized mulit-year carbon removal purchase agreement with Microsoft
Microsoft has signed a multi-year agreement with Ecotrust Forest Management (EFM) to purchase up to 3 million nature-based carbon removal credits and invest in EFM’s fourth forest fund. The credits will be generated through sustainable timberland management practices in the U.S. Pacific Northwest, supporting biodiversity and long-term carbon sequestration. In addition to credit purchases, Microsoft is taking a direct stake in the fund, which aims to raise $300 million for conservation-oriented forestry. This collaboration advances Microsoft’s target of becoming carbon negative by 2030 and reflects its growing emphasis on high-integrity, nature-based solutions. It also signals a broader market shift toward carbon removal credits with verifiable co-benefits. As scrutiny of voluntary offsets increases, investments like this represent a more transparent and durable approach to corporate climate responsibility.
ICE Introduces Geospatial Data to Assess Climate Risks for Companies and Nations
Intercontinental Exchange (ICE) has launched the Global Climate Risk Solution, a new tool aimed at helping investors evaluate climate risks for corporate and sovereign assets. Using geospatial data, the tool assesses physical threats such as wildfires, floods, and hurricanes, covering over 1.6 billion buildings globally. It currently includes more than 3 million corporate and sovereign asset locations, with plans to expand to 9 million. The initiative responds to rising investor demand for detailed and localized climate risk insights. By quantifying exposure to climate-related hazards, the tool is designed to support portfolio risk management, insurance needs assessments, and strategic asset allocation in a changing climate. ICE’s move reflects a broader trend toward integrating climate analytics into financial decision-making.
Schroders Greencoat Buys $600M Stake in Ørsted’s UK Offshore Wind Farm
Schroders Greencoat has acquired a 24.5% stake in Ørsted’s West of Duddon Sands offshore wind farm for $600 million, further cementing its position in renewable energy infrastructure investment. The wind farm, operational since 2014, is located off the northwest coast of England and contributes 389 MW to the UK’s energy grid. Ørsted’s sale is part of its capital recycling strategy, allowing the Danish energy giant to reinvest in new renewable projects. The deal demonstrates continued institutional appetite for operational clean energy assets amid global decarbonization efforts. For Schroders Greencoat, the acquisition strengthens its UK portfolio and supports long-term income generation from low-carbon infrastructure. The transaction reflects broader trends in sustainable finance, where stable, revenue-generating green assets are increasingly attractive to institutional investors seeking climate-aligned returns.
Regulations, Law and Frameworks
24 States Sue New York and Vermont Over Climate Superfund Laws Targeting Oil Giants
A coalition of 24 U.S. states has filed a lawsuit against New York and Vermont, challenging newly enacted Climate Superfund laws that require fossil fuel companies to pay for climate damage. These laws aim to hold major polluters financially accountable for historical emissions contributing to extreme weather and other climate-related harms. The plaintiff states argue that the laws violate constitutional protections and interfere with federal energy policy. They warn of potential economic disruptions and legal overreach. Supporters of the legislation argue it is a necessary step to ensure that polluters bear the cost of climate adaptation and recovery, rather than taxpayers. The case may set a legal precedent regarding state-level efforts to recoup climate-related costs and could shape the future balance between environmental accountability and corporate liability in the U.S. The lawsuit highlights deep political divides over climate responsibility and regulation.
Euronext Rebrands ESG to Support Defense Listings and Bond Issuance Across Europe
European stock exchange operator Euronext has redefined its ESG strategy, rebranding it as “Energy, Security, and Geostrategy” to align with EU priorities on defense and strategic autonomy. The shift includes new initiatives to facilitate capital access for defense and aerospace firms, such as the launch of a “Defence Growth Hub” and tailored IPO readiness programs. Euronext will also introduce dedicated indices tracking defense-related equities, challenging traditional ESG norms that often exclude military-linked investments. The move reflects changing attitudes in Europe amid heightened geopolitical tensions and energy security concerns. While critics argue the rebranding risks diluting environmental standards, Euronext positions it as a necessary response to evolving strategic imperatives. The development underscores a growing debate about the boundaries of sustainable investing in a context where security, resilience, and sovereignty are increasingly prioritized.
India Releases Draft Climate Finance Taxonomy to Accelerate Net-Zero Investment
India has released a draft climate finance taxonomy aimed at steering investments toward projects aligned with its net-zero goals. The framework defines eligibility criteria for sustainable investments across sectors such as renewable energy, energy efficiency, and low-carbon transportation. The taxonomy is designed to guide both domestic and foreign investors in identifying credible green opportunities. It marks a step toward institutionalizing climate-aligned finance in India and enhancing the country’s attractiveness for sustainability-focused capital. The proposal also brings India more in line with international frameworks, such as the EU taxonomy, and could play a pivotal role in meeting the country’s climate commitments by 2070.
EBA Signals It Won’t Delay ESG Scenario Rules Despite CSRD Reforms
The European Banking Authority (EBA) has signaled that it does not plan to delay its upcoming ESG scenario analysis guidelines, despite ongoing reforms to the EU’s Corporate Sustainability Reporting Directive (CSRD). The draft guidelines aim to help banks assess long-term risks related to climate change, biodiversity loss, and other sustainability issues. Some market participants had urged a delay, arguing that overlapping regulatory timelines could strain reporting resources. However, EBA maintains that robust scenario analysis is essential to financial resilience and long-term planning. The guidance will cover both qualitative and quantitative approaches, including transition and physical risk modeling. EBA also plans to align its framework with international standards, such as those from the NGFS and ISSB. The decision underscores the EU’s commitment to integrating ESG risk management into prudential regulation, even amid broader revisions to corporate reporting rules. Final guidelines are expected later in 2025.
ESG- and Green Bond Issuances
Iberdrola Issues €750M Green Bond Aligned with EU and ICMA Standards
Iberdrola has made a significant stride in sustainable finance by issuing the world’s first green bond aligned simultaneously with the European Union’s new European Green Bond (EuGB) standard and the International Capital Market Association’s (ICMA) Green Bond Principles. The €750 million issuance, due in 2034, was five times oversubscribed, drawing €3.75 billion in demand from over 170 global investors. The proceeds will finance renewable energy and electricity grid infrastructure projects in line with the EU Taxonomy for sustainable activities. The bond aims to meet the most stringent disclosure, allocation, and transparency criteria now emerging in green finance regulation. Iberdrola’s initiative reflects growing investor appetite for standardized, verifiable sustainability investments and sets a new precedent for the evolving regulatory landscape in green capital markets. The bond will be listed on both the AIAF market in Spain and the Luxembourg Green Exchange, signaling strong institutional support for rigorous environmental finance frameworks (source: iberdrola.com).
Net Zero Commitments
Capgemini Updates ESG Policy – Adds Ethics, Sets New Net-Zero Targets
Capgemini has updated its Environmental, Social, and Governance (ESG) policy, introducing ethics as a dedicated strategic pillar and outlining new sustainability targets. The revised policy includes nine priorities, among them a reinforced focus on climate action, digital inclusion, and ethical AI. Capgemini now aims to reach net-zero emissions by 2040 and reports a 93% reduction in Scope 1 and 2 emissions since 2019. Scope 3 emissions from business travel per employee have dropped by 62%. Additionally, the firm has achieved 98% renewable electricity usage. Gender diversity remains a core objective, with a goal to reach 40% female representation across the global workforce and 35% in executive positions by 2030. The policy update reflects the growing expectation for corporations to embed ESG deeply into governance structures and operational practices, beyond reporting metrics, as part of long-term business resilience and societal responsibility.
Verra Launches Just Transition Carbon Credit Method to Support Coal Phase-Out
Verra has launched a new carbon credit methodology designed to support the equitable transition away from coal-fired power generation. Titled the “Methodology for the Just Transition for Coal-to-Clean Energy Projects,” it incentivizes emissions reductions by crediting the early retirement of coal plants and their replacement with renewable energy. Crucially, it integrates social safeguards to ensure that affected workers and communities benefit from the transition, including job retraining and local investment. The framework aims to address both environmental and socioeconomic dimensions of decarbonization, setting a precedent for how carbon markets can support climate justice. As coal remains a major source of emissions globally, this approach offers a structured pathway to accelerate its phase-out while ensuring that vulnerable populations are not left behind. The methodology will undergo a public consultation period and represents a shift toward more holistic climate finance instruments.
Emsteel Unveils Green Finance Framework for Low-Carbon Steel, Cement, and Renewables
Emsteel has introduced a Green Finance Framework aimed at mobilizing capital for sustainable industrial development. The framework enables the issuance of green bonds and loans to fund projects in low-carbon steel and cement production, renewable energy, and energy efficiency. Developed in line with international standards, the framework has received a “Very Good” Second Party Opinion from Moody’s. Emsteel’s goals include reducing CO₂ emissions from steelmaking by 40% and from cement production by 30% by 2030. The initiative is part of the company’s broader strategy to align operations with global net-zero pathways and advance decarbonization in traditionally hard-to-abate sectors. By leveraging green finance mechanisms, Emsteel seeks to bridge the gap between industrial output and environmental performance, while signaling to investors and regulators a long-term commitment to sustainable infrastructure. The move reflects increased industry interest in sector-specific frameworks for green financing (source: emsteel.com).
ESG Data & Analytics
NGFS Launches First Climate Risk Tool for Short-Term Economic Stress Tests
The Network for Greening the Financial System (NGFS), a group of central banks and financial supervisors, has released its first short-term climate risk scenarios, focusing on a five-year horizon. The scenarios assess the economic and financial stability impacts of physical climate risks—such as extreme weather—and transitional risks from shifting energy policies. They are intended to help financial institutions better manage short-term climate vulnerabilities and adjust strategies accordingly. While long-term modeling has been common in climate finance, the NGFS’s short-term outlook fills a critical gap, offering more immediate tools for regulators and investors. The new scenarios aim to improve stress testing and risk calibration in a rapidly evolving climate policy landscape.
Infosys and Economist Impact Launch AI-Powered Sustainability Atlas
Infosys, in partnership with Economist Impact, has launched the “Sustainability Atlas,” a digital platform powered by artificial intelligence to guide corporate climate strategies. The tool aggregates sustainability data across multiple dimensions—economic, environmental, and social—helping businesses assess risks and opportunities in the transition to net-zero. It enables users to benchmark performance, model scenarios, and identify climate priorities by region and industry. The platform reflects a broader trend of leveraging AI to support environmental decision-making in the private sector. By offering actionable insights through data visualization and predictive analysis, the atlas is intended to help companies align operations with climate science and policy targets. As regulatory and investor scrutiny intensifies, tools like the Sustainability Atlas could become central to strategy development, disclosure practices, and stakeholder engagement around ESG performance.