The 5 latest ESG/sustainability news stories you shouldn't miss

1. Carbon credits: first permanent absorption methods validated by the European Commission

On 3 February, the European Commission adopted a draft delegated act describing the first methodologies for certifying techniques for the permanent removal of CO₂ from the atmosphere (under the CRCF Regulation adopted at the end of 2024).
The following absorption techniques are concerned:

• Direct air capture with carbon storage (DACCS).

• biogenic carbon capture and storage (BioCCS).

• Biochar carbon capture and removal (BCR).

Carbon removal projects using these techniques – according to the criteria set out in the delegated act – can now apply for EU certification.

However, the Parliament and the Council may oppose this project for a period of two months (renewable).

The European Commission is currently working on other complementary processes for agriculture and agroforestry, as well as methodologies for carbon storage in bio-based construction products.

2. Biodiversity: IPBES report supports transformation of business models

On 9 February, IPBES published a landmark report on the links between business and biodiversity, highlighting that all businesses depend on nature and have an impact on it, even those that appear to be far removed from ecosystems. The study was conducted over three years by 79 experts from all regions of the world.

In this report, IPBES identifies biodiversity loss as a critical systemic risk to the economy, financial stability and human well-being. The study "emphasises that fundamental change is possible and necessary to create an enabling environment that aligns what is profitable for businesses with what is beneficial for biodiversity and people". However, "less than 1% of companies publish reports mentioning their impacts on biodiversity". In response to this alarming finding, the report details more than 100 concrete actions that companies and financial institutions can implement, to measure and manage their impacts and dependencies: integrating biodiversity issues into strategy, setting targets, adopting alternative business models, etc.

3. Textiles: details on the European ban on destroying unsold clothing/footwear

Every year in the EU, 4 to 9% of unsold textiles are destroyed, generating around 5.6 million tonnes of CO₂, which is almost Sweden's net annual emissions in 2021. This is the finding of the European Commission.

On 9 February, the Commission adopted legislation to prevent the destruction of these unsold items – clothing, accessories and footwear.

As a reminder, the ban on destroying unsold items will be implemented:

• for large companies from 19 July 2026.

• for medium-sized companies, probably from 2030.

Exceptions are set out in the Commission's texts.

Companies will also be required to publish, in a standardised format, the volumes of unsold goods treated as waste from February 2027.

The Commission points out that in France, the equivalent of €630 million worth of unsold products are destroyed each year, and the German market generates nearly 20 million returned items that are thrown away each year.

4. Climate: EU target of -90% net emissions by 2040

The European Parliament has approved the compromise reached with the Council of the EU to enshrine a new interim target in climate law: a 90% reduction in net GHG emissions by 2040 compared to 1990. The Council of the EU must now do the same.

To achieve the target:

• up to 5 percentage points of the reduction may come from "high-quality" international carbon credits from 2036 onwards.

• permanent carbon removals at national level can offset the most difficult emissions to reduce under the ETS.

• the entry into force of ETS2 (buildings and road transport) is postponed to 2028.

5. CSRD post-Omnibus: towards the publication of the text and the start of the transposition period

On 24 February, the Council of the EU is expected to formally adopt the compromise reached on the second text of the omnibus package amending the CSRD and the CS3D Directive. This will be followed by the official publication of the legal text in the Official Journal of the EU. The text will then enter into force and mark the start of the transposition period. Member States will have one year to incorporate the amendments into their national law.