October 2026 Newsletter: Nature Enters Reporting, Resilience Gets a Law
October was a month in which rules and timelines shifted while capital and companies kept moving. On the compliance front, the ISSB opened a consultation on nature-related disclosures, bringing nature closer to mainstream reporting. The European Parliament backed a three-year delay to the EU’s methane rules, while the European Commission proposed its first Climate Resilience Law to prepare Europe for physical climate risks.
Globally, high temperatures struck hard on economies. Europe’s extreme summer was linked to around 50,000 deaths and a €17 billion hit to GDP. UNEP’s Emissions Gap Report confirmed that the 1.5°C limit will be overshot, signaling companies to prepare for a warmer world.
Various industries are transitioning to renewable sources of power. In this edition we have covered the latest moves in the cement, technology, automobile and real estate sector.
Investor attention to climate remained strong with TPG closing its Rise Climate Fund II at US$ 10 billion. Indian climate-tech funding is on track to reach about US$ 1.9 billion by the end of 2026.
Like always, we have divided the newsletter into sections so you can jump straight to the topics that interest you. Each news piece carries a source link for further reading, and where we have written a detailed blog on a topic, we have linked it as well.
On behalf of everyone at Esgity Advisors, we wish you and your families a very Happy Diwali and a joyful New Year.
Happy Reading!
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COMPLIANCE UPDATES : How are sustainability-related regulations and compliances changing?
ISSB Opens Consultation on Nature-Related Disclosures
Image Source: AdviseISO
On 22 October, the International Sustainability Standards Board (ISSB) released an Exposure Draft on nature-related disclosures, launching it during the UN biodiversity conference (COP17) in Armenia. The proposal draws extensively on the framework developed by the Taskforce on Nature-related Financial Disclosures (TNFD), and it asks companies to explain how their business depends on nature and how it affects nature, while connecting that information with climate-related risks and the financial statements.
The draft places particular weight on where a business operates and on how it engages with Indigenous Peoples, local communities and other affected stakeholders. The ISSB proposes to issue the guidance as a voluntary Practice Statement, although it is also seeking views on whether it should instead become a full standard. The 120-day consultation closes on 19 February 2027.
Most companies do not map their sites and supply chains against nature-related risks, so organisations should begin with a basic site and supplier mapping exercise now. Companies already using TNFD will have a head start, but the consultation gives every company a chance to influence the final text.
On 22 October, the European Parliament voted 341 to 225, to delay the monitoring, reporting and verification rules for oil, gas and coal importers under the EU Methane Regulation by three years. The European Commission had proposed a delay of only one year, and the vote followed pressure from several governments and from importers who warned that they may struggle to secure enough compliant supplies.
Under Parliament's position, importers would have until 31 May 2031 to show that their supply contracts meet EU-equivalent standards, and the first methane intensity reports would move from August 2029 to August 2031. EU oil and gas operators would also receive more time to submit verified source-level and site-level measurements, while fuel from sanctioned countries would get no extra time. Parliament must now negotiate a final text with the Council of the EU.
The vote shows that the EU's simplification agenda is no longer limited to sustainability reporting and now extends to energy and supply-security rules.
On 27 October, the European Commission presented its first-ever Climate Resilience Law, together with a wider Framework for Climate Resilience, to shift Europe from reacting to climate disasters towards managing physical climate risks in advance. The proposed law sets a common reference trajectory for global warming so that every member state assesses future risks on the same basis. Read the proposal.
Member states would have to assess their climate risks by June 2029 and adopt resilience plans by December 2030, and the Commission would present an EU-wide strategic plan on climate resilience by 2028. The Commission estimates that Europe needs about € 70 billion a year for adaptation, while extreme weather has cost the EU around €50 billion a year on average in recent years. The binding duties fall on public authorities rather than companies, and the proposal brings no new funding, although the European Investment Bank has committed at least €30 billion for adaptation by 2030.
Because funding is largely left to member states, delivery will depend on national budgets, which creates room for private capital and adaptation solution providers.
GLOBAL UPDATES :The big climate stories shaping the world this month
Two studies published this month put numbers on the cost of Europe's extreme summer. Researchers estimate that heat caused around 50,000 deaths across cities in the region, the highest toll on record, with human-caused climate change responsible for nearly two-thirds of them. The count covers 854 cities, so the real figure is likely to be higher.
The economic damage was also large. Heat reduced EU GDP by roughly 0.17% between April and September, or close to €17 billion (US$ 19 billion), through lower farm output, constrained power generation, transport disruption and weaker labour productivity.
Heat is now a measurable financial risk rather than only a public health concern, and it affects supply chains, energy costs and workforce productivity at the same time. For companies, this strengthens the case for site-level physical-risk assessments, heat action plans for workers and investment in cooling and efficiency, while for investors it adds weight to adaptation as an investment theme. The figures also provide the backdrop to the EU's new Climate Resilience Law (News Piece 3) and explain why such planning is moving up the policy agenda.
On 21 October, the UN Environment Programme released its annual Emissions Gap Report, titled The Point of Return. It finds that current policies would lead to about 2.8°C of warming this century, and that even full delivery of every national pledge would still result in around 2.6°C. The report treats an overshoot of the 1.5°C limit as now unavoidable.
Rather than abandoning the goal, the report sets out a route to bring temperatures back down later, and it calls for deep emission cuts in the near term. UN Secretary-General António Guterres described a "leadership gap" but stressed that overshooting 1.5°C "is not surrender". The findings arrive just weeks before the COP31 climate summit in Antalya.
For businesses and investors, this points towards tighter climate policy, higher physical risk and closer scrutiny of transition plans, so targets and scenario analyses should be tested against a world that is 2°C warmer or more rather than one that stays within 1.5°C. It also puts pressure on negotiators at COP31 to show delivery rather than announce new pledges.
Luiz Inácio Lula da Silva won Brazil's presidential runoff on 25 October, defeating Flávio Bolsonaro in a closely contested race and securing a fourth term that begins on 5 January 2027.
Under Lula, Brazil hosted the COP30 climate summit last year and has positioned itself as a climate leader for the Global South, promoting rainforest protection and clean energy cooperation. Analysts point to two limits: his government supports expanding oil production, and his administration is expected to face pressure to balance public finances.
The result gives continuity to Brazil's role in international climate diplomacy as COP31 approaches, and it keeps Amazon protection on the national agenda, which matters for biodiversity and for forest-linked finance. However, the combination of an oil-friendly line and a divided Congress suggests that progress will be uneven. Investors and companies with exposure to Brazil should watch how forest policy is balanced against fossil fuel revenue, and how fiscal limits affect funding for the green transition.
INDUSTRY UPDATES : News from companies across sectors
Indian cement companies are investing heavily in green power to cut costs and emissions. UltraTech aims to raise its green energy share to 85% by FY30 from 35.8% in FY26, and it has become the first Indian cement company to exceed 2 GW of green captive capacity. Ambuja Cements targets 60% by FY28, JK Cement about 75% by FY30, and Shree Cement has already reached around 65%.
ICRA expects green power capacity among major producers to grow from about 4 GW in March 2026 to 5.8–6 GW by March 2028, backed by investments of about ₹12,000–13,000 crore over two years. Power and fuel account for 25–35% of cement production costs, and the group captive model, which requires a 26% equity stake in a renewable project and consumption of 51% of its power, lowers the upfront capital needed. Adani Cement is separately building about 1 GW of solar and wind capacity on its own.
Cost is now driving the shift as much as climate commitments, since ICRA estimates that replacing 25% of conventional power with green power saves ₹75–80 per tonne, with payback periods of roughly two years. Cement is covered under both CBAM and CCTS, which places additional pressure on companies to reduce carbon emissions.
Google has expanded its agreement with energy company Voltus to secure up to 1,070 MW of flexible capacity for its data centres, building on an earlier 100 MW deal signed this year. The capacity comes from a virtual power plant on the PJM grid, which serves about 67 million people in the eastern United States.
Voltus will pay homes and businesses to reduce demand when the grid is strained, often automatically through smart thermostats and batteries. A virtual power plant does not generate electricity; it counts demand reductions and stored energy as capacity, so Google can draw on the grid for its data centres without waiting years for new power plants or transmission lines. Concerns remain that rising data centre demand is straining the grid and could push up prices for households.
This builds on the scrutiny of data centres we covered in our September newsletter, as regulators and communities ask who bears the cost of AI-driven demand. If the model works, other hyperscalers are likely to follow, creating a new revenue stream for households and businesses with flexible loads, but its credibility will depend on transparent measurement, on whether the reductions are real, and on keeping costs from shifting onto ordinary consumers.
Pune-based EKA Mobility has unveiled an electric commercial vehicle manufacturing ecosystem worth over ₹3,500 crore, alongside plans to invest ₹1,000 crore in R&D over the next five years. The group says it has already spent more than ₹600 crore on R&D, and it expects its 11 facilities to create over 2.5 lakh jobs across its operations and wider ecosystem over five years.
The company has also entered the medium and heavy commercial vehicle truck segment, adding to its bus and small commercial vehicle portfolio, and reports that its volumes grew more than 13 times in the first half of FY27 to over 1,700 units. EKA is backed by investors including NIIF's India-Japan Fund, which we covered in our July–August newsletter.
REAL ESTATE | Flexible Workspace Providers Expand Solar Capacity
Managed workspace operators in India are stepping up their investment in solar energy. The Economic Times reports that providers such as IndiQube and WeWork India are ramping up their solar capacity, while Table Space is building its renewable energy capabilities through partnerships and investments.
In July, Table Space signed a long-term power purchase agreement with CleanMax for a 2.7 MWp group captive solar project in Karnataka. The push comes as the sector grows quickly, with Crisil expecting India's flexible workspace capacity to expand by 16–18% over this fiscal year and the next, to 140–145 million square feet.
Commercial real estate is becoming a significant buyer of clean power, and the sector's rapid growth means its electricity demand will rise with it. Tenants such as global capability centres and large corporates carry their own emission targets, so low-carbon workspace helps them reduce indirect emissions and report credible numbers, giving operators that offer it a competitive edge. Smaller operators may struggle to match this without access to group captive structures or long-term power contracts, which could favour larger and better-financed players.
INVESTOR UPDATES :News developments on sustainable finance and sustainability-focused investors
TPG has raised US$ 10 billion for the second vintage of its Rise Climate strategy, reaching the hard cap after exceeding its US$ 8 billion target. The news came just days after Climate Week NYC ended. Rise Climate II is the largest private equity impact strategy raised to date, and its investors range from large US public pension plans and foundations to sovereign wealth funds.
The fund invests globally across buyouts, carve-outs and growth equity in areas such as clean power, energy services, electric transport and sustainable materials. TPG's executive chairman has said that nearly a third of the capital has already been invested, less than a month after the final close.
A raise of this size despite political headwinds in the US shows that institutional appetite for climate investing remains strong. Investors however now want evidence of delivery rather than new pledges, which was also the mood at Climate Week. We covered that discussion in our blog, Climate Week NYC 2026. Funds of this scale raise the bar for deal quality and impact measurement, so companies seeking climate growth capital should be ready to show verified emissions and impact data. Fast deployment also suggests that competition for good assets will be intense.
On 19 October, the European Commission selected 77 net-zero technology projects across 23 countries to receive €3.4 billion from the EU Innovation Fund, which is financed by revenues from the EU carbon market. The projects are expected to avoid around 290 million tonnes of CO₂-equivalent emissions during their first decade of operation.
The funding covers large-scale industrial decarbonisation, clean-technology manufacturing, critical raw materials and pilot projects. For the first time, the fund has also backed a small modular nuclear reactor project and a direct air carbon capture and storage project. Demand was heavy: applicants requested about €17.5 billion against a budget of roughly €2.9 billion.
A report by Ostara Research says Indian climate-tech companies raised US$ 791 million across 74 equity funding rounds between January and May 2026. If that pace continues, full-year equity funding could reach about US$ 1.9 billion, although the report stresses that this is an indicative run-rate projection and not a forecast.
The funding is concentrated, with five late-stage transactions making up 71% of the total. The report also identifies a shortage of growth capital between Series B and Series C as a key constraint for Indian deep-tech companies, and says that domestic growth funds, government-backed financing and energy security concerns could create fresh opportunities in 2027.
INDIA UPDATES : News shaping India's sustainability landscape
India's electric vehicle market recorded its best month on record in September, with the dealers' body FADA (Federation of Automobile Dealers Associations) reporting retail sales of 3,33,634 units, a rise of 74% over the previous year. Overall EV penetration reached about 13% of all vehicles sold, compared with about 10% a year earlier, which is the basis for the "one in eight" milestone.
Electric two-wheelers took 11.58% of their segment and electric three-wheelers about 65%, while electric passenger vehicles also set a record at 36,108 units, an 8.45% share compared with 5.74% a year ago. Electric commercial vehicles accounted for 4.04% of sales. FADA attributed the performance to festive demand, improving ownership economics, a wider range of models and continued policy support.
Two- and three-wheelers are doing the heavy lifting while passenger EVs, though growing fast, are still below a tenth of car sales. As volumes rise, the focus moves from creating demand to building the enablers: charging networks, grid capacity, battery supply chains and skilled technicians. For manufacturers and investors, this points to opportunity in batteries, charging and vehicle financing, and for policymakers it underlines the importance of sustaining support as the market matures. Festive demand should keep October & November numbers strong.
A report titled "Blended Finance for India's Climate Goals", launched on 27 October by CEEW's Green Finance Centre (CEEW-GFC) and Tata Sons, estimates that India needs about US$5 00 billion of climate investment by 2030 across 20 low-carbon technologies. It covers power, industry and mobility, which together account for around 70% of the country's greenhouse gas emissions. Power and renewables need about US$ 198 billion and green hydrogen about US$ 115 billion, with the remainder going to electric mobility.
The report finds that unlocking 10% of the total, or about $50 billion, through blended finance would build a track record for the remaining capital to follow without support. That would take only $10 billion of catalytic capital, which means every dollar of catalytic capital mobilises about five dollars of blended finance. Between 2010 and 2022, India recorded just $5.6 billion in blended finance transactions, or 3.4% of the global market, and only 17% of that was catalytic capital.
The report suggests that the constraint is not only the size of the investment need but the shortage of patient, risk-absorbing capital to get projects started. As Tata Sons chairman N Chandrasekaran put it, conventional finance alone will not be enough, and India needs capital willing to take early risks and accept lower near-term returns. To close this gap, the report proposes a National Green Finance Institution, as recommended by NITI Aayog, to pool catalytic capital from governments, philanthropies and development partners. It also encourages domestic philanthropies to play a larger role, given geopolitical uncertainty around foreign capital. Green hydrogen illustrates the point well, since it needs about 59% of the catalytic capital for about 23% of the total investment. For developers, investors and advisers, this signals growing demand for blended finance structuring, and for founders it means preparing a clear case for how their project could fit into such a structure.
The Institute of Chartered Accountants of India (ICAI) has released new versions of its Sustainability Reporting Maturity Model: Version 3.1 for the manufacturing sector and Version 3.2 for the service sector. Both are aligned with BRSR and with global sustainability reporting frameworks. The SRMM is a structured, 300-point self-assessment framework that lets a company score its sustainability reporting, place itself on a maturity scale and see which areas need work, and ICAI has also released Excel utilities so that companies can run the assessment themselves.
The model is voluntary and is not a regulatory requirement. BRSR, however, is mandatory for India's top 1,000 listed companies, and the SRMM is built around it. ICAI first launched the model in March 2021 as a scoring methodology for BRSR, and these versions continue its effort to help companies move from basic compliance towards more mature reporting.
FROM OUR BLOG THIS MONTH : Detailed reads from the Esgity team
SSA 5000: A Practitioner's Guide to India's New Sustainability Assurance Standard A walk-through of the new standard from ICAI's Sustainability Reporting Standards Board, which applies to sustainability information reported for periods beginning on or after 1 April 2027.
Climate Week NYC 2026 What practitioners saw during the week, where the focus moved from new pledges to proof of progress against existing commitments.
That's a wrap for October. See you next month!
Best Regards,
Team Esgity Advisors
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