The rise of Environmental, Social, and Governance (ESG) factors in the realm of deal making is increasingly undeniable, influencing organizational performance and overall valuations. According to Circulor partner KPMG and its recent survey of dealmakers in the EMEA region, 80% are integrating ESG into their merger and acquisition strategies with approximately 65% willing to pay premiums to invest in targets with strong ESG track records—and the data to back them up.

However, the road to ESG integration is laden with obstacles like setting both meaningful and manageable scopes of due diligence, closing gaps in data where real business risk lies, and quantifying the financial impacts of their ESG analysis. To counter these, a comprehensive approach is necessary, one that includes regulatory compliance, stakeholder perspectives, and an understanding of both the risks and opportunities that ESG presents.

KPMG makes an important and yet nuanced distinction—there are those companies that are setting best practices and those who risk even failing to comply with current or coming regulations. To the former, companies can miss “revenue opportunities by not adapting to customers’ preferences for sustainable products” and making such information available to their customers at the product level. To the latter, compliance risks can amount to penalties and overall barriers to doing business.

The floor seems to be both rising and solidifying in terms of what companies need to report as a baseline. California lawmakers have advanced a pivotal bill mandating that companies disclose their direct and in-direct carbon emissions as soon as 2027. In this move, California would join the European Union in requiring companies to disclose Scope 1, 2, and 3 emissions, and together—representing the world’s 6th and 3rd largest economies—these two global efforts would mark a significant shift for transparency in corporate environmental practices.

As more meaningful and measurable data becomes evident and required, innovative partnerships are taking hold, like the one between KPMG and Circulor. Together, consultancy and supply chain traceability companies can serve businesses in creating the high-quality data they need, building data and organizational structures that collect, monitor, and manage data from a magnitude of stakeholders, assessing double materiality, and seeking external assurance in the form of compliance or greater revenue. In a co-penned blog, Circulor and KPMG share more on this trend and the approaches companies are increasingly taking.

We look forward to continuing to bring you these global insights both here, as well as on circulor.com and LinkedIn. More on the latest global traceability trends below.

What we're reading

Volvo Group secures near-zero emissions steel

Volvo Group announced that it will increase the share of near-zero carbon steel in its commercial vehicles through a partnership with H2 Green Steel. Under a long-term agreement between the two companies, Volvo will begin taking deliveries from H2’s new plant in Boden, Sweden by mid-2026. H2 Green Steel recently secured €1.5B in equity, employs green hydrogen and 100% renewable energy for its steel production and aims to produce nearly 5M tons of fossil-free steel by 2030. Volvo's partnership aligns with its goal of achieving net-zero GHG emissions by 2040.

Apple targets Carbon Neutral Product Line by 2030

In advancing its sustainability pledge, Apple has announced that over 300 of its global suppliers are shifting to 100% renewable energy for production by 2030, aiming for carbon neutrality across all products within the decade. The recent debut of Apple’s first-ever, carbon-neutral products in the new Apple Watch lineup demonstrate a 75% reduction in emissions per watch that are achieved through improving design and also following strict criteria of using 100% clean electricity for manufacturing and product use, 30% recycled or renewable material by weight, and 50% of shipping without the use of air transportation.

EU bans unsubstantiated green claims

By 2026, the European Union (EU) plans to prohibit general environmental claims such as "climate neutral" unless properly substantiated. This move, designed to prevent greenwashing, will also scrutinize claims about carbon offsetting and green labels without accreditation. As the EU emerges as a global leader in vetting green claims, traceability plays a critical role in ensuring that companies are genuinely upholding their environmental commitments, fostering transparency in commercial practices, and providing consumers with reliable information.

California sets U.S. climate benchmark with new emission disclosures

California lawmakers have taken a significant step forward in climate regulations, advancing a groundbreaking bill that mandates companies to disclose their carbon emissions. Starting in 2027, this will encompass emissions from both suppliers and customers. While tech giant Apple backs the measure, some companies may resist. This proactive move by California notably overshadows federal efforts, with the Securities and Exchange Commission's proposed climate rules still pending.

Clean tech manufacturing leads U.S. clean energy investments

In the U.S., clean energy investment is surging, with the Rhodium Group and MIT reporting $213B in new clean energy investments, a 37% rise over last year and a 165% boost over the last five. Clean tech manufacturing saw the most substantial growth at 125% year-on-year, reaching $39B, with significant growth in electric vehicle and solar sectors. Additionally, $61B was invested in clean energy production, a 15% yearly increase, while consumer investments in technologies like heat pumps and EVs totaled $113B, up 32%. This data, surpassing the GDP of 18 U.S. states, emphasizes the industry's rapid growth.

What we're sharing

Circulor’s Battery Passport solution helps companies build compliant, responsible, circular value chains

Battery Passports will be required in the EU from the start of 2027. With the most advanced supply chain transparency solution, and the largest network of battery facilities participating on its platform (125), Circulor’s Battery Passport helps organizations accelerate their journey to compliant, responsible, and circular value chains. Circulor’s latest video has more—tune in here.

A powerful duo: KPMG and Circulor

Companies need more than just data. They need accurate, timely and auditable data that drives informed decision making. Together, Circulor and KPMG offer a complete and comprehensive traceability package, spanning advisory, implementation and technological services. Read more

Pursuing a secure and transparent clean energy economy, U.S. requires growing sourcing and disclosure requirements

As supply chain transparency and material traceability become globally important, the U.S. is implementing several policies that require the disclosure of information on the sourcing, processing, and manufacturing of certain goods. From a Carbon Border Adjustment Mechanism bill underway with Senate republicans, to requirements for traceability within the Department of Defense, the U.S. has passed or is passing a number of initiatives that make traceability a new standard for doing business. Read more.

Circulor, Hyperledger, and Oracle: offering the transparency, confidentiality, and scalability needed for complex industrial supply chains

Hyperledger Foundation, a global collaboration created to advance cross-industry blockchain technologies, shares its case study on Circulor and how its use of Hyperledger Fabric and Oracle Cloud Infrastructure create the necessary transparency, confidentiality, and scalability that uniquely fit the needs required of procurement and supply chain management. Read more.

Transparency is a key differentiator for Polestar

PC Mag recently sat down with Polestar’s sustainability lead, Lisa Bolin, and Ellen Carey, chief external affairs officer at Circulor, to discuss Polestar’s commitment to uphold transparency within its manufacturing operations. Polestar’s continued collaboration with Circulor to trace materials and emissions within their supply chains is a key differentiator for their brand and growth, especially as a growing number of Polestar customers and potential customers want to know that their cars are sustainably and responsibly produced. Read more.