This week in ESG
Catastrophic US aid cuts, proposed EU emission reductions and a major offshore wind project in the UK.
Key highlights
✂️ USAID cuts could risk 14 million lives – a study in the Lancet medical journal warns that huge cuts to funding to the US Agency for International Development (USAID), along with a gutting of its workforce, could lead to 14 million additional deaths in low to middle income countries by 2030.
🏦 HSBC becomes first bank to exit Net Zero Banking Alliance – after becoming a founding member in 2021, HSBC has become the first major UK bank to leave the UN-backed Net Zero Banking Alliance (NZBA). The move follows a wave of exits from US financial institutions.
✈️ British Airways secures sustainable fuel deal – the airline has committed to purchasing 400,000 tonnes of Sustainable Aviation Fuel (SAF), produced from waste-based biomass, as it attempts to lower total emissions and meet decarbonisation goals.
⚖️ EU targets 90% emissions cut by 2040 in climate law overhaul – seeking to amend EU climate law, the European Commission has proposed new climate targets to reduce greenhouse gas emissions by 90% by 2040, compared to 1990 levels. The plan also includes tax incentives to boost clean tech investment and industrial decarbonisation – aligning with the EU’s 2030 and 2050 climate goals.
🪙 Iberdrola invests $6 billion to UK offshore wind – the Spanish energy giant, Iberdrola, will co-invest in the 1.4 GW East Anglia THREE offshore wind project. The investment marks one of the largest offshore-wind developments of the decade, supporting the transition to renewable energy.
Chart spotlight - climate change is disrupting business
Source: Morgan Stanley, 11th April 2025
Why this matters
A new corporate survey from Morgan Stanley’s Institute for Sustainable Investing helps highlight that the impact of climate change on businesses are no longer distant threats – they’re already here.
More than half of companies surveyed globally say they’ve been affected by extreme heat (55%) or other extreme weather (53%) over the last 12 months, while one third have suffered from wildfires, droughts and flooding. Of those companies impacted, over half experienced increased operational costs, 40% had their workforce disrupted and 39% lost revenue due to climate-related events. Strikingly, only 3% reported no negative impact on their business.
Without accelerated progress on climate mitigation and adaption, these impacts are set to only get worse.
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