ESG International Weekly News 4/29 -5/5

1.🤖Recycling AI Startup Glacier Raises $16M Series A to Scale Robot Deployment Across U.S.

Glacier, a San Francisco-based startup focused on AI and robotics for recycling, raised $16 million in a Series A funding round to expand its robotic systems across the U.S. and improve recycling efficiency, reduce emissions, and strengthen local manufacturing resilience.

• Founded in 2019 by Rebecca Hu and Areeb Malik, Glacier automates recycling through AI-powered robots that identify 30+ materials and sort at 45 items per minute.

• The system is modular, easy to install, requires no heavy machinery, and costs half as much as traditional systems.

• It also provides real-time data analytics to help improve sorting accuracy and operational decisions for recyclers and brands.

• Funds will support product development, team expansion, and large-scale national rollout.

• The round was led by Ecosystem Integrity Fund, with continued support from Amazon’s Climate Pledge Fund, NEA, and others.

🔍 Key Highlights:

• 🧠 Tech focus: AI-driven sorting, data analytics, compact design

• 🔧 Deployment: Fast installation, minimal disruption, space-efficient

• 💰 Cost advantage: ~50% of traditional system costs

• ♻️ Impact: Emission reduction, job creation, U.S. supply chain resilience

• 🚀 Momentum: Rapid market growth and scaling across major hubs

💬 Quotes:

“We’re positioned to scale our technology even faster and strengthen U.S. recycling infrastructure.”
— Rebecca Hu-Thrams, CEO & Co-Founder, Glacier

“With 80% of residential recyclables not actually recycled, Glacier offers a practical, scalable solution for recovery.”
— Sasha Brown, Partner, Ecosystem Integrity Fund

2.📊ESMA Publishes Draft Rules for ESG Rating Providers Under New EU Regulation

The European Securities and Markets Authority (ESMA) published draft Regulatory Technical Standards (RTS) under the EU’s ESG Rating Regulation, introducing compliance rules for ESG rating agencies and opening a consultation period until June 20, 2025.

• The ESG Rating Regulation was adopted by the European Commission in late 2024 to enhance the reliability and transparency of ESG ratings.

• ESMA will authorize and supervise ESG rating providers, requiring transparency in methodologies, models, and data sources.

• Providers offering additional services (e.g., consulting or credit ratings) must ensure real organizational separation to avoid conflicts of interest.

• Disclosure rules mandate publication of how ratings are derived and structured, to ensure user understanding and comparability.

• A final version of the RTS is expected in October 2025 following public consultation.

🔍 Key Highlights:

• 🧾 Legal Basis: Based on the 2024 ESG Rating Regulation.

• 💡 Disclosure Requirements: Publish methodology, model assumptions, and information layout sequence.

• ⚠️ Conflict of Interest Control: Strict organizational separation required if offering additional services.

• 📆 Timeline: Consultation open until June 20, 2025; final draft expected by October 2025.

• 🔍 Goal: Improve trust and comparability in the ESG ratings market.

3.🍫Nestlé and ofi Launch Global Cocoa Agroforestry Initiative to Cut Carbon and Support Regenerative Agriculture

Nestlé and food ingredients giant ofi announced a large-scale agroforestry and regenerative farming program, targeting 25,000 farmers across Brazil, Nigeria, and Ivory Coast. The project aims to reduce emissions, combat deforestation, and help farmers adopt climate-smart agriculture practices.

• Nestlé sources 430,000+ tons of cocoa annually, mainly from West Africa, making it one of the world’s largest cocoa buyers.

• The initiative includes planting 2.8 million trees and converting 72,000 hectares into agroforestry landscapes.

• Farmers will receive training and financial rewards for forest maintenance and climate-smart farming.

• Estimated CO₂ reductions exceed 1.5 million tons over 30 years.

• This effort aligns with Nestlé’s Net Zero Roadmap: 20% emissions cut by 2025, 50% by 2030, and net zero by 2050.

🔍 Highlights:

• 🌱 Climate-smart farming via agroforestry and crop residue management.

• 💸 Farmer incentives and skills development.

• 🌳 Tree planting goals: 2.8 million trees and 178,000 acres restored.

• 🌎 Impact: Over 1.5 million tons of CO₂ removed in 30 years.

• 🧭 Net Zero Commitment: Agriculture emissions are 70% of Nestlé’s carbon footprint, with deforestation a key target.

💬 Quotes:

“We’re putting farmers at the center of the solution… supporting them in adapting and mitigating climate change.”
— Andrew Brooks, ofi

“We are helping farmers shift to regenerative practices to build a responsible cocoa supply chain.”
— Darrell High, Nestlé

4.♻️Circular economy startup Syre to build world’s first gigascale textile recycling plant in Vietnam’s Binh Dinh Province

Syre, a textile-to-textile recycling startup founded by H&M Group and impact investor Vargas, announced plans to establish its first large-scale plant in Vietnam. With a focus on polyester, which contributes to 40% of the textile sector’s emissions, Syre aims to provide scalable solutions to decarbonize fashion production.

• Founded in 2024, Syre raised $100M in Series A funding to build blueprint and gigascale recycling plants.

• Its first gigascale site will be located in Vietnam, capable of producing 100,000–250,000 metric tons of circular polyester annually.

• Vietnam was selected for its strong position in the global textile supply chain.

• The project’s feasibility hinges on infrastructure access, green energy, and government approval to import recyclable feedstock.

• Iberia remains a potential secondary site.

🔍 Key Highlights:

• 📍 Location: First plant to be built in Vietnam’s Binh Dinh Province.

• 💸 Funding: $100 million Series A investment.

• ♻️ Focus: Recycled polyester, key to reducing textile emissions.

• 🏛️ Policy Support: Import licenses, infrastructure, and green energy access under negotiation.

💬 CEO Dennis Nobelius said:

“The partnership with Binh Dinh Province will, with the right conditions in place, be a great opportunity to jointly lead the textile shift.”
 

5.🏦Bank of England Proposes Stronger Climate Risk Rules for Banks and Insurers

The Bank of England (BoE) published proposals aimed at enhancing climate risk management expectations for banks and insurers, citing uneven progress and underdeveloped risk frameworks since the issuance of its initial 2019 guidance (SS 3/19).

• The Prudential Regulatory Authority (PRA) found that most firms lack metrics for climate risk or a defined climate-specific risk appetite.

• Many firms have not treated climate as a material risk, with insufficient assessments to support such conclusions.

• Insurers' existing climate metrics often fail to quantify financial impacts, limiting their usefulness in risk monitoring.

🔍 Key Proposal Highlights:

• 📈 Scenario Analysis: Firms must improve scenario modeling and demonstrate how outputs inform decision-making.

• 📉 Data Gap Identification: Firms are expected to assess and close gaps in climate data and enhance oversight of third-party data use.

• 🧭 Risk Appetite & Governance: BoE wants formal climate risk appetite policies tied to strategy and subject to board review.

• 📆 Consultation Deadline: Stakeholders may submit comments until July 30, 2025.

💬 Quote:

“Effective risk management will help create a more resilient financial system to withstand climate events and transition risks… supporting the UK’s long-term economic competitiveness.”
— David Bailey, Executive Director, BoE