ESG International Weekly News 6/3 -6/9

1. DuPont Achieves 100% Renewable Electricity Across All EU Operations

DuPont has announced that all 13 of its manufacturing sites in the European Union are now fully powered by renewable electricity. This milestone was accomplished through the procurement of Renewable Energy Certificates (RECs) and the installation of on-site solar energy systems. The achievement represents a significant step toward DuPont’s commitment to reach net-zero carbon emissions by 2050. The company has also set interim 2030 targets to reduce Scope 1 and 2 emissions by 50%, cut Scope 3 emissions by 25%, and ensure that 60% of its power comes from renewable sources.

Key Highlights:

• 13 EU manufacturing sites now run on 100% renewable electricity.

• Implementation via bundled and unbundled RECs and on-site solar installations.

• Long-term goal: Net-zero carbon operations by 2050.

• 2030 targets:

  • 50% reduction in Scope 1 & 2 emissions

  • 25% reduction in Scope 3 emissions

  • 60% of electricity sourced from renewables

• As of 2024, DuPont has already reduced Scope 1 & 2 greenhouse gas emissions by 58% from a 2019 baseline, surpassing its 2030 goal.

• Joined the RE100 initiative in 2021 to accelerate global renewable energy adoption.

Quote:

“At DuPont, we are guided by a core value of protecting the planet, aligning our sustainability goals to meet the expectations of our customers, value chain partners and the communities in which we operate. Converting our EU manufacturing sites to 100% renewable electricity is a significant step in our journey to further reduce our emissions, lower the carbon footprint of our products and put us on a clear path toward decarbonization in our operations by 2050.”
— Alexa Dembek, Chief Technology and Sustainability Officer, DuPont

2. Nippon Steel to Invest ¥870 Billion in EAF Conversion at Three Japanese Plants to Slash Emissions

Japan’s Nippon Steel plans to invest ¥870 billion (USD 6.05 billion) to build a new electric arc furnace (EAF) at its Kyushu Works and expand two other domestic facilities, targeting a combined annual capacity of 2.9 million tonnes by fiscal 2029. This investment supports its Carbon Neutral Vision—30% CO₂ reduction by 2030 and net-zero emissions by 2050—by shifting from coal-fired blast furnaces to EAF technology, despite higher capital and operating costs.

Key Highlights:

• Investment Size: ¥870 billion (USD 6.05 billion) for new EAF construction and plant expansions.

• Three Plants: New EAF at Kyushu Works; expansion and upgrades at two East Nippon Works sites.

• Capacity Goal: 2.9 million tonnes per year, operational in FY 2029.

• Technology Shift: Electric current melts steel in place of coal combustion, significantly cutting CO₂ but raising capital, raw material, and electricity expenses.

• Emissions Reduction: Achieved a 43% CO₂ cut at a test furnace in East Nippon Works by end-2024.

• Government Support: Backed by Japan’s GX Promotion Act, with up to USD 1.75 billion in subsidies by 2029.

• International Challenges: Proposed US Steel acquisition has faced U.S. labor opposition over potential job losses and union impacts; former President Trump has since endorsed the deal, citing benefits for the U.S. steel industry.

Quote:

“While the conversion from the blast furnace steelmaking process to the electric arc furnace steelmaking process would work to significantly reduce CO₂, it would require substantial capital investment and lead to considerable increases in production costs, including costs for raw materials and electricity. It is therefore necessary for Nippon Steel, as a private enterprise, to ensure predictability of investment recovery to carry out such an investment.”
— Nippon Steel company statement

3. Trump Administration Moves to Roll Back Biden’s ESG Rule for Retirement Plans

The U.S. Department of Labor has informed the 5th Circuit Court of Appeals that it will no longer defend the 2023 Biden-era rule allowing U.S. retirement plans to consider environmental, social, and governance (ESG) factors in investment decisions. The DOL plans to reconsider and issue a new regulation to replace it. Under the original rule, ERISA fiduciaries could include ESG and climate factors—when relevant to a risk and return analysis—in both investment choices (as tiebreakers between equally material options) and proxy voting. The move signals a potential return to a more restrictive approach focused solely on pecuniary factors.

Key Highlights:

• Withdrawal of Defense: DOL has ceased defending the Biden ESG rule and intends to propose a new rule.

• Original Rule Provisions: In 2023, the rule permitted ESG considerations for ERISA plans when two investments were financially equal and allowed climate/ESG factors in shareholder voting, so long as relevant to risk–return analyses.

• Trump-Era Contrast: During Trump’s first term, retirement plans could only consider pecuniary factors; that limitation was deemed overly restrictive at the time.

• Stakeholder Challenges: Twenty-six states sued, alleging the rule undermined protections for over 150 million workers; the Senate voted to overturn it in 2023, but the President vetoed the resolution.

• Judicial Views: A Texas federal judge (Matthew Kacsmaryk) ruled in 2023 and again in February 2025 that the rule did not violate ERISA, even as the DOL moves to rescind it.

4. Texas Removes BlackRock from “Energy Boycott” Divestment List

Texas Comptroller Glenn Hegar announced that BlackRock has been delisted from the state’s “boycotting energy companies” roster after the asset manager exited the Net Zero Asset Managers initiative, reduced its participation in Climate Action 100+, and scaled back funds prohibiting oil and gas investments. Under Texas law, financial firms on this list must cease boycotting energy companies within 90 days or face divestment by state entities. BlackRock was one of the original names in 2022; it is now the sole firm removed, while 15 others—including AMP, BNP Paribas, UBS (formerly Credit Suisse), and HSBC—remain listed.

Key Highlights:

• List Background: Established in 2022 under Texas’s anti-energy-boycott law, requiring listed firms to end boycott activities within 90 days or be divested.

• BlackRock’s Actions:

  • Exited the Net Zero Asset Managers pledge;

  • Reduced involvement in Climate Action 100+;

  • Cut the number of oil & gas exclusion funds;

  • Shifted away from blanket fossil-fuel divestment policies.

• List Status: BlackRock is the only removed firm; 15 others (e.g., AMP, BNP Paribas, UBS, Crédit Agricole, Danske Bank, HSBC) and hundreds of individual funds remain.

• Economic Context: Texas supplies nearly a quarter of U.S. energy and holds over 40% of the nation’s proved oil reserves and production. The Comptroller hailed the update as validating Texas’s leadership in safeguarding its energy sector.

Quotes:

“This is a meaningful victory and validates the leadership Texas has shown on this issue, which has seen a monumental shift in the way companies, governments and individual Americans view the energy sector.”
— Texas Comptroller Glenn Hegar

“We appreciate the Comptroller’s resolution of this matter. BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state. These investments support the continued growth of the Texas economy.”
— BlackRock spokesperson

5. Nearly 9 in 10 Institutional Investors Maintain Sustainable Investing Commitments, but Many Stay Quiet — BNP Paribas ESG Survey 2025

BNP Paribas surveyed 420 institutional investors representing almost USD 34 trillion in AUM across 29 countries. It found 87% of investors have not scaled back their ESG or sustainability objectives, with under 3% reducing them. However, nearly half of those maintaining objectives report being less vocal about their ESG processes and achievements. Regional differences are notable: 7% of Americas investors scaled back versus ~2% in EMEA and <1% in APAC. Looking ahead to 2030, 74% expect sustainability progress to remain steady, 11% foresee acceleration, and 23% anticipate “less publicity.” The survey also highlights a shift toward thematic investing—used by 50% of investors—behind only negative screening (62%) and energy transition (52%). Short-term plans include increasing allocations to energy transition assets (49%), leveraging active ownership (49%), and investing in low-carbon assets/divesting high-carbon (46%), while fewer than a third plan to integrate DEI (down from 41% in 2023). Long-term objectives focus on setting net-zero targets by date (40%), measuring Paris Agreement alignment (34%), and promoting social issues (33%). Top barriers are ESG data and research challenges (58%), short-term performance vs. long-term goals (56%), and greenwashing risks (54%).

Key Highlights:

• Stable ESG Commitments: 87% unchanged; <3% scaled back.

• Reduced Publicity: Nearly half remain quieter despite unchanged goals.

• Regional Variations: 7% Americas vs. ~2% EMEA vs. <1% APAC scaled back.

• Future Outlook: 74% expect pace to remain; 11% expect acceleration; 23% expect less publicity.

• Evolving Strategies: Thematic investing 50%; negative screening 62%; energy transition 52%.

• Short-Term (2 years):

  • 49% to boost energy transition allocations

  • 49% to use active ownership

  • 46% to invest in low-carbon/divest high-carbon

  • <30% to integrate DEI (vs. 41% in 2023)

• Long-Term Goals:

  • 40% to set specific net-zero dates

  • 34% to measure Paris alignment

  • 33% to advance social issues

• Major Barriers:

  • 58% ESG data & research challenges

  • 56% short-term vs. long-term performance conflict

  • 54% greenwashing risks

Quote:

“With growing investment opportunities in ranging from energy to biodiversity, to adaptation activities, to transition, we can expect investors to continue to focus on thematics for the rest of this decade, and to reduce exposure to generalist ESG strategies.”
— BNP Paribas, ESG Survey 2025