ESG Investing Weekly — 2026-10-27
Institutional investors continue to increase sustainable allocations, though growth expectations remain modest as data concerns persist. The GHG Protocol introduced a critical update to Scope 2 emissions accounting, while the ISSB proposed new nature-related reporting standards. Meanwhile, biodiversity finance saw a 79% surge in 2025, signaling a shift toward nature-positive investment strategies.
ESG Investing Weekly — 2026-10-27
Institutional Sustainable Allocations Rise, But Growth Expectations Moderate
A new survey by Morgan Stanley reveals that over 80% of institutional investors plan to increase their sustainable investment allocations. However, the data indicates a trend toward cautious optimism, with few investors expecting large-scale increases. Data quality remains a primary concern for these allocators, who are seeking better transparency before committing significant new capital.

GHG Protocol Proposes Two Market-Based Methods for Scope 2
The GHG Protocol has released a plan for Scope 2 emissions that backs two market-based methods. Method 1 involves hourly-matched claims, while the second method relies on the 2015 rules. The 2015 rules are permitted only until a specific cut-off date, pushing companies toward more granular, hourly-matched carbon accounting to ensure accuracy in corporate emissions reporting.
ISSB Releases Proposed Nature-Related Reporting Requirements
The International Sustainability Standards Board (ISSB) has released proposed nature-related corporate reporting requirements. This development aims to standardize how companies disclose their impacts on biodiversity and ecosystems. The proposal is part of a broader effort to integrate nature into mainstream financial reporting, alongside existing climate standards.
Green Capital Flows
Biodiversity Finance Surges 79% in 2025
According to the IDFC Green Finance Mapping 2026 report, biodiversity finance rose by 79% to reach USD 14.2 billion in 2025. This significant increase highlights a growing trend among IDFC members to integrate biodiversity into their financial strategies. The report emphasizes the need to scale up biodiversity finance to meet global conservation goals.
EU Green Bond Issuance Reaches €39bn in 2026
European Union green bond issuance has reached €39 billion so far in 2026. This momentum is supported by over €320 billion invested in EU Taxonomy-aligned activities in 2025. The continued growth in green debt issuance underscores the EU's commitment to sustainable finance frameworks and the Taxonomy's role in directing capital.
Regulation & Policy Watch
GHG Protocol Scope 2 Methodology Update
The GHG Protocol is implementing a phased transition for Scope 2 emissions accounting. Companies must adopt hourly-matched Method 1, while the legacy 2015 market-based rules are allowed only until a defined cut-off date. This change affects corporate reporting accuracy and requires investors to scrutinize how companies transition their accounting methods.
ISSB Nature-Related Reporting Proposal
The ISSB has proposed new reporting requirements focused on nature-related disclosures. This affects companies with significant biodiversity impacts or dependencies. The proposal is currently open for review, with final standards expected to influence future corporate sustainability reports and investor due diligence processes.
Corporate Moves
Coca-Cola, Nestlé, and Danone Commit to Improved Packaging Claims
Following an EU greenwashing complaint, major consumer goods companies including Coca-Cola, Nestlé, and Danone have committed to improving their packaging claims. This corporate response highlights the increasing regulatory scrutiny on sustainability marketing and the need for verifiable claims in consumer-facing ESG communications.
ESMA Focuses on Materiality and Risks in Sustainability Reporting
The European Securities and Markets Authority (ESMA) has outlined its enforcement priorities for sustainability reporting. ESMA will focus on the materiality of disclosures, as well as the reporting of impacts, risks, and opportunities. This signals a stricter enforcement approach for companies operating in or reporting to European markets.
What to Watch Next Week
- Finalization of GHG Protocol Cut-off Dates: Monitor announcements regarding the specific cut-off date for the 2015 Scope 2 market-based methods.
- ISSB Nature Standards Feedback: Watch for industry feedback on the newly proposed nature-related reporting requirements.
- Further Institutional Allocation Data: Look for additional quarterly reports from major asset managers detailing their sustainable investment flows.
Reader Action Items
- Review Scope 2 Methodology: Investors should verify which Scope 2 accounting method (hourly-matched vs. 2015 rules) is being used in their portfolio companies' latest reports.
- Assess Biodiversity Exposure: With biodiversity finance growing rapidly, consider evaluating portfolio companies for their nature-related risks and opportunities beyond just carbon emissions.
- Scrutinize Packaging Claims: Be vigilant regarding consumer goods companies' sustainability marketing, particularly in the EU, where greenwashing enforcement is tightening.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
