- Published at
Monday Morning Briefing CW 23, 2025

Key regulatory, market, and corporate developments shaping sustainability and ESG in Europe and beyond.
Table of Contents
- Regulatory News
- EU Omnibus Proposal Faces Pushback from Companies
- EU Parliament Highlights Process Deficiencies in Omnibus Simplification
- Market Trends
- Global ESG Funds Experience Continued Outflows
- European Pension Funds Intensify ESG Oversight
- Company News
- Company News
- Microsoft Faces Challenges in Carbon-Negative Ambitions
- ESG Funds Reevaluate Defense Stocks Amid Geopolitical Shifts
- Walmart and Target Confront DEI Policy Backlash
- Schneider Electric Enhances Scope 3 Emissions Strategy
- Novo Nordisk Invests €1.6B in Green Danish Facility
- Outlook for the Week Ahead (June 2–9, 2025)
June 1, 2025
Regulatory News
EU Omnibus Proposal Faces Pushback from Companies
A recent survey indicates that a majority of companies are not in favor of the European Commission’s Omnibus I proposals to reduce sustainability reporting requirements under the CSRD. Concerns revolve around potential impacts on transparency and investor trust.
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EU Parliament Highlights Process Deficiencies in Omnibus Simplification
The EU Parliament’s hearing on the Omnibus Simplification Package has brought to light several process deficiencies. Stakeholders emphasize the need for comprehensive impact assessments before implementing changes to sustainability reporting regulations.
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Market Trends
Global ESG Funds Experience Continued Outflows
In Q1 2025, global ESG funds suffered record net outflows of $8.6 billion, reversing the previous quarter’s inflows. The downturn is attributed to political backlash and regulatory uncertainty surrounding ESG investments.
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European Pension Funds Intensify ESG Oversight
European pension funds, including the UK’s People’s Pension and Denmark’s AkademikerPension, are tightening ESG requirements. These funds are reviewing or terminating relationships with asset managers that underperform on ESG integration.
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Company News
Company News
Microsoft Faces Challenges in Carbon-Negative Ambitions
Microsoft remains committed to its goal of becoming carbon negative by 2030. However, the company reported a 23.4% increase in its carbon footprint, primarily due to the expansion of AI data centers. To stay on track, Microsoft has invested in carbon removal technologies and imposed supplier requirements for clean electricity and low-carbon materials.
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ESG Funds Reevaluate Defense Stocks Amid Geopolitical Shifts
European ESG investors are increasingly incorporating defense stocks into their portfolios. Investments in defense ETFs surged to $6.2 billion in 2025, up from $1.1 billion the year before. This shift reflects a changing perspective on the role of defense in maintaining democratic resilience.
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Walmart and Target Confront DEI Policy Backlash
Walmart and Target both disclosed concerns over potential consumer backlash tied to recent diversity, equity, and inclusion (DEI) initiatives. Legal and reputational risks from conflicting stakeholder expectations are prompting more cautious language in filings and public statements.
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Schneider Electric Enhances Scope 3 Emissions Strategy
Schneider Electric announced a strengthened focus on Scope 3 emissions, unveiling a partnership platform for suppliers to disclose data and accelerate decarbonization. The initiative is part of its roadmap to net-zero across its full value chain by 2050.
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Novo Nordisk Invests €1.6B in Green Danish Facility
Pharmaceutical company Novo Nordisk will invest €1.6 billion in a climate-neutral production facility in Hillerød, Denmark, to meet demand for obesity and diabetes medicines. The site will run on 100% renewable energy and include waste heat recovery systems.
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Outlook for the Week Ahead (June 2–9, 2025)
- EFRAG Webinar on ESRS Implementation: Stakeholders will discuss challenges and provide input on the European Sustainability Reporting Standards.
- Corporate Sustainability Reports: Upcoming ESG disclosures from BMW Group, Unilever, and Vestas will offer insights into CSRD preparedness.
Sources:
- ESG Today – Majority of Companies Not in Favor of Omnibus Proposals
- ISS Corporate – EU Omnibus Update
- Morningstar – Global ESG Funds Suffer Outflows
- Financial Times – European Pension Funds Intensify ESG Oversight
- Apparel Resources – Inditex Restructures Leadership
- Times of India – Indian Astronaut to Grow Superfoods in Space
- LIDO Festival – Sustainability
- Times of India – Hingoli Launches Eco-Friendly Initiative
This article was created with the assistance of AI and carefully reviewed, edited, and refined to ensure accuracy and clarity.