ESG Weekly | Global Sustainability & Climate Finance Insights

March 9 – March 12, 2026

Major ESG Developments This Week

This week saw several significant developments in global sustainability policy, energy transition, and climate finance. Europe is reconsidering the role of nuclear power in achieving energy security and decarbonization, with the EU launching a new SMR strategy and the UK including nuclear energy in its green bond framework. At the same time, financial regulators continue to strengthen climate risk management expectations for financial institutions, while capital markets are expanding sustainable finance. Corporate sustainability initiatives are also accelerating, with LEGO significantly increasing renewable and recycled materials in its products.

Together, these developments highlight a shift in ESG from purely emissions reduction toward a broader focus on energy security, transition finance, and circular economy strategies.

LEGO Surpasses 52% Renewable and Recycled Materials

LEGO reported that 52% of materials used in its bricks in 2025 came from renewable and recycled sources, up from 33% in 2024.

The company sources sustainable materials largely through a mass balance supply chain approach, where suppliers mix fossil and renewable feedstocks while certifying the renewable content purchased.

Packaging improvements are also underway, with 56% of LEGO’s global packaging lines now using paper-based bags instead of single-use plastic.

Key targets include:

• Sustainable materials by 2032

• 37% emissions reduction by 2032

• Net zero by 2050

Despite 29% revenue growth between 2022 and 2025, the company reported using less virgin fossil-based material than in 2022.

EU Calls Nuclear Phase-Out a Strategic Mistake

European Commission President Ursula von der Leyen stated that Europe’s move away from nuclear energy was a strategic mistake.

Nuclear once generated one-third of Europe’s electricity in the 1990s, but today accounts for only about 15%.

The EU announced a new Small Modular Reactor (SMR) strategy, aiming to deploy SMR technology in the early 2030s.

Key policy tools include:

• Regulatory sandboxes

• Cross-border regulatory alignment

• €200 million investment guarantee

Europe currently has 500,000 nuclear industry professionals, providing a strong base for advanced nuclear development.

Singapore Sets Climate Risk Management Expectations

The Monetary Authority of Singapore (MAS) released new guidelines requiring banks, asset managers, and insurers to integrate climate risks into governance and strategy.

The framework focuses on:

• Transition risks

• Physical climate risks

MAS emphasizes engagement rather than divestment, encouraging financial institutions to work with high-emission companies to support their transition.

UK Raises $8.4B Green Bond Including Nuclear

The UK issued £6.25 billion ($8.4B) in green gilts, introducing a new 2037 maturity bond.

A major policy change allows nuclear energy expenditures to qualify for green bond financing.

Eligible categories include:

• Nuclear power plant construction

• Lifetime extension

• Nuclear fuel cycle infrastructure

• Waste management

• Fusion research

Since 2021, the UK has raised £55.8 billion through green gilts.

HSBC Sustainable Finance Surpasses $100B

HSBC mobilized $102 billion in sustainable finance in 2025, bringing its cumulative total since 2020 to $495.6 billion.

The bank aims to reach $750 billion–$1 trillion by 2030.

While growth slowed due to weaker sustainable bond markets, sustainable lending and ESG investment flows continued to expand.