1. EU invests €4.8 billion in decarbonization projects. The European Commission has selected 85 zero-emission projects to receive €4.8 billion in grants from the Innovation Fund, financed by the Emissions Trading Scheme (ETS). This is the largest funding call since the Fund’s inception in 2020. The projects, spanning 18 European countries, include energy-intensive industries, renewable energy, carbon management, and zero-emission mobility. For the first time, funding is allocated to projects of different scales, with a focus on cleantech manufacturing.
Among the awardees, 11 projects are Italian-led, including carbon capture initiatives and energy storage systems. The selected projects aim to reduce 476 million tons of CO2 emissions by 2030, contributing to the EU’s goal of climate neutrality by 2050. The projects were evaluated based on emission reduction potential, innovation, and cost-effectiveness, strengthening Europe’s industrial and technological leadership.
2. Private equity prioritizes sustainability. PE firms are increasingly prioritizing sustainability, driven by investor demand and commercial benefits. A recent BCG report highlights that 85% of limited partners plan to further emphasize sustainability in the next three years. The PE industry, managing over $8.7 trillion in assets, has made progress in areas like renewable energy adoption and gender diversity in C-suite positions. However, only 22% of PE-owned companies have decarbonization strategies, indicating gaps compared to public companies. Despite this, PE-backed firms that do focus on sustainability are reducing emissions at a faster rate. As sustainability becomes central to PE strategies, the industry is poised to drive further positive impact and competitive advantage.
3. HKMA unveils roadmap to net zero for Hong Kong’s financial sector. The Hong Kong Monetary Authority (HKMA) has launched its Sustainable Finance Action Agenda, setting ambitious targets for the financial sector to support Hong Kong’s net-zero transition and establish it as a sustainable finance hub. Key directives include requiring banks to achieve net-zero emissions in their operations by 2030 and in financed emissions by 2050. Banks will need to disclose climate risks and opportunities per international standards, including ISSB and Basel frameworks.
The HKMA plans to incentivize sustainable finance innovation, expand sustainable investments, promote climate-friendly technology, and close knowledge gaps through training programs to advance sustainable practices across the financial sector.
4. Closing green skill gaps in the boardroom.
Climate change, biodiversity loss, and natural capital are now central to business decisions, but many boards are struggling with a green skills gap. This gap leaves them without the expertise needed to navigate a world where sustainability and profitability are closely linked. A study by Competent Boards and Copenhagen Business School revealed that only 2% of Fortune 500 boards in the U.S. and Europe have sufficient competency in sustainability. Despite 66% of companies assigning sustainability oversight to their boards, the lack of expertise hampers effective decision-making on critical issues like carbon emissions and net-zero strategies. The pressure to address this gap is mounting as regulations tighten and investor emphasis on sustainability grows.
5. Key AI questions CIOs must address for the board. As AI investments rise, CIOs must skillfully communicate its value to boards, addressing financial impacts, risks, and implementation challenges. Many board members, unfamiliar with AI, rely on CIOs to clarify key details. Gartner analyst Tina Nunno advises CIOs to keep presentations concise, as board members typically review only 40 pages before meetings. CIOs should answer critical questions on AI strategy, financial outcomes, competitive stance, workforce impacts, and risk management. This clear communication is vital to securing board alignment, as board members aim to protect shareholder interests and ensure the organization remains competitive in a rapidly evolving AI landscape.
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