Insights | | Altiorem Weekly - 4 October 2026

Altiorem Weekly - 4 October 2026

Just transition, nature risk, and energy flexibility
4 October 2026

Research this week examines the climate investment trap in Africa, where high capital costs threaten green electricity production despite massive projects like the Scatec solar system in Egypt. The collection also features an analysis of greenwashing as aspirational signalling from the European Corporate Governance Institute and a CFO guide from the TNFD for integrating nature-related risks. Additional updates cover the expansion of the UN Human Rights database concerning West Bank settlements and the performance of Uruguay’s sovereign sustainability-linked bonds.

Dear friends and supporters of Altiorem,

Sometimes you have to say, wow, that's awesome. For me last week there were two things. The first was a trend we posted about on the Scatec solar and battery Energy Valley project in Egypt, which will be one of the largest batteries in the world when it is finished with a mind-blowing 1,950MW solar system supported by a battery with 3,935 MWh of capacity. (to see our daily regional trends, follow us on LinkedIn).

This news got me digging into the state of the energy transition in Africa on Altiorem. The scale of the challenge remains enormous with 685 million people lacking access to electricity and clean cooking* only reaching 23% of people. While this was an improvement population growth means the gap grew. In the IEA Energy review, Africa energy demand grew at almost 3% in 2025, but 60% of this was oil, despite renewable capacity doubling to around 12GW. This is what made the scale of the Scatec project so remarkable, although it should be noted that these larger projects are skewed towards the Middle East. 

The World Bank's Mission 300 initiative is driving investment and is currently on track to give 200m people access to electricity, however this is significantly less than the 300m people targeted. Finance is a barrier, with research in Nature estimating that higher weighted average cost of capital could leave green electricity production 35% lower in Africa than if capital costs were equalised with other regions, creating a "climate investment trap". The importance of this cost of capital problem is huge when you consider CISL analysis that estimates African states must spend at least US$2.5 trillion by 2030 to meet climate commitments, with emissions reduction making up roughly 80% of this and adaptation costed at US$418bn.

However, opportunities for different development paths exist through integrated approaches. UNIDO argues decarbonisation can be a growth strategy rather than a cost, through economic corridors linking renewable energy with industrial hubs (steel, cement, minerals processing). It names Morocco's Tanger Med port complex and Ethiopia's industrial parks as examples that have generated strong export growth and employment.

The investment split is changing too with 86% of Africa's generation capex now going into clean energy, against 13% to fossil fuels. As it should given a 13-country analysis found oil and gas extraction had failed to deliver inclusive growth (e.g. Nigeria's oil sector employs just 0.01% of the workforce) and has instead been linked to poverty, corruption and external shocks, such as 2026 price spikes pushing diesel prices up 35–40% in several countries. 

So, the challenges in Africa, particularly Sub-Saharan Africa remain wicked, but the seeds of a clean and accessible energy future are showing some promise, and the path of fossil driven development is increasingly seen for the false promise it is.

The second awesome thing was the humble Bogong Moth currently descending in great numbers across where I live in Sydney. They are not the most beautiful endangered species (even though beauty is in the eye of the beholder), but some fortunate conditions have seen them visit our city on their very long migration to Australia's alpine region in the largest numbers I can remember.

It may not be the great migrations of wildebeests or turtles, but it is a (very!) visible example of how when the conditions are right, nature can recover. But unlike the fortunate set of circumstances for the Bogong this year, we do not need to leave these changes to chance. People (and the finance sector!) can play an active role in creating the conditions to support the recovery of natural systems.

Here too, Altiorem has a lot of great material. To turn back to Africa, a rewilding project of wildebeest grazing in the Serengeti is driving fire suppression that has increased carbon storage by 4.4 MtCO₂. These interventions have adaptation benefits too, with Green Riyadh's planting of 7.5 million trees is projected to cut local temperatures by up to 15°C. Commonland's 2023 report quantifies the scale of recovery possible, they estimate that restoring biodiversity-rich land across Europe, costed EUR 154 billion, can generate EUR 1,860 billion in benefits – a 1:12 return. 

Like renewables, the structures are there, they just need to be deployed more quickly and at larger scale. The 2020 WWF report provides blueprints for structuring nature restoration projects so they generate financial returns alongside conservation outcomes, covering climate-smart agriculture and wetland, peatland and forest restoration, and the blended finance playbook for nature-based solutions contains a collection of useful case studies for investors, highlighting growing evidence of investment opportunities in nature.

Altiorem was proud to work with the Responsible Investment Association of Australasia and the brilliant Maddy Combe to collect more that 170 nature resources that you can interrogate with Altiorem's chatbot Alma. 

Until next week,
Pablo

PS: We are very proud to be publishing Alexander Pui and Shiori Fukuhara excellent new piece: The Climate Average Trap – Check it out.

*Clean cooking includes LPG in the IEA analysis because "clean" is based on PM 2.5 pollution thresholds

New in the library

Pablo’s handpicked highlights from Altiorem last week:

★ Featured

Stewarding a just transition: Frontiers of practice in listed equities

Grantham Research Institute on Climate Change and the Environment

This research examines how investors can support a just transition within listed equity portfolios. It provides guidance on active ownership and stakeholder engagement to ensure the shift to net zero supports workers and communities while managing financial risks.

Active ownershipIndustry standards and guidanceStakeholder engagement and advocacy
Beyond energy infrastructure: A flexibility-first approach cuts costs and boosts security

Carbon Trust

This report explores how prioritising flexibility in energy systems can reduce costs and improve security. It moves beyond traditional infrastructure builds to analyse how demand-side response and storage can accelerate the transition to a low-carbon economy.

Issue/sector focused research
Toward a more human pace for data center development

University of Oxford, Clean Energy Leadership Institute

Rapid data centre expansion presents significant governance and environmental challenges. This paper proposes a more sustainable development pace, analysing how to balance technological growth with community needs and resource constraints to ensure long-term stability and social licence.

Issue/sector focused research
Greenwashing as aspirational signaling: From burden to benefit?

European Corporate Governance Institute (ECGI)

This paper analyses greenwashing through the lens of aspirational signalling, questioning whether it represents a burden or a potential benefit for organisational change. It explores how regulatory frameworks and communication strategies influence corporate sustainability commitments and accountability.

Effective communication and greenwashLaws and regulationsStrategy and Organisational change
Asking better questions on nature: For chief financial officers

Taskforce on Nature-related Financial Disclosures (TNFD), Accounting for Sustainability (A4S)

Designed for chief financial officers, this guide provides a framework for integrating nature-related risks into financial decision-making. It offers practical questions to help leaders analyse their organisation’s impact on biodiversity and align corporate strategy with emerging nature disclosure standards.

ESG Integration and analysisIndustry standards and guidanceStrategy and Organisational change
Leveraging technological solutions for human rights due diligence

United Nations Global Compact

This resource explores how digital tools can enhance human rights due diligence across global supply chains. It provides guidance for organisations to leverage technology in identifying, preventing, and mitigating social risks while improving transparency and stakeholder engagement.

Industry standards and guidanceIssue/sector focused researchStakeholder engagement and advocacyStrategy and Organisational change
Hidden in plain sight: Unlocking actionable insights in client data

Consultative Group to Assist the Poor (CGAP)

Financial institutions often overlook valuable insights within their own client data. This report demonstrates how to unlock this information to improve impact measurement and product development, helping organisations better serve marginalised customers and support inclusive economic growth.

Impact measurement and verificationIssue/sector focused researchProduct development and trends

To see all of the resources added this week visit Altiorem’s website: Altiorem Articles: Insightful Reads & Expert Knowledge

This week in ESG trends

★ Featured

UN Human Rights Settlements Blacklist Expansion

2 October 2026

The United Nations Human Rights Office expanded its database of business enterprises involved in activities related to Israeli settlements in the occupied West Bank on September 26, 2026, adding 61 new firms to the list. The update identifies companies providing services, construction, or surveillance that support the maintenance and growth of settlements, which are considered illegal under international law. The database now includes a total of 214 companies, the majority of which are based in Israel, though several international entities are also listed. [Published: 26 Sep 2026]

📖 Integrating human rights due diligence (HRDD) in finance and investment📖 Navigating portfolio exposure to conflict-affected and high-risk areas: Practical guidance for investor engagement with companies

Africa & Middle East

Scatec and The Arab Energy Fund Equity Bridge Loan

2 October 2026

Norwegian renewable energy producer Scatec signed a three-year equity bridge loan facility totaling USD 150 million with The Arab Energy Fund on October 1, 2026. The facility supports the 900 MW Shadwan onshore wind project in Egypt and the "Energy Valley" project, which includes 1,950 MW of solar capacity and nearly 4 GWh of battery storage. This arrangement allows Scatec to fund equity injections while long-term non-recourse project financing is finalised with development finance institutions. [Published: 01 Oct 2026]

📖 Interactive data tool on Middle East energy reliance📖 Clean economic corridors in Africa: Integrating energy, industry, and transport for low carbon growth

Americas (North, Central & South America)

UNIDO and IDB Sustainable Industrial Transformation Framework

1 October 2026

The United Nations Industrial Development Organization (UNIDO) and the Inter-American Development Bank (IDB) signed a framework agreement on September 30, 2026, to scale sustainable industrial transformation across Latin America and the Caribbean. The agreement includes a specific Programme for Country Partnership (PCP) for Suriname, signed on September 22, 2026, which focuses on industrial decarbonisation and modernisation. The partnership aims to co-finance projects and develop financial mechanisms that accelerate the transition to a low-carbon economy for regional industries. [Published: 30 Sep 2026]

📖 Global Innovation Lab for Climate Finance: Portfolio📖 Global Project Tracker

State Attorneys General Regulatory Scrutiny Request

1 October 2026

A coalition of 21 Republican state attorneys general, led by Montana Attorney General Austin Knudsen, sent a formal letter to the SEC on September 24, 2026, demanding scrutiny of Moody’s Corporation. The officials allege that Moody’s relied on inaccurate climate projections in an August 2026 report and that its ESG commitments create undisclosed conflicts of interest. This action represents an escalation in the regulatory clash over the use of sustainability metrics in financial risk assessment. [Published: 30 Sep 2026]

📖 Trump climate endangerment stories📖 CPA-Zicklin Index of Corporate Political Disclosure and Accountability

Asia

Japan-EU Sustainability Reporting Alignment

28 September 2026

On September 26, 2026, the Sustainability Standards Board of Japan and the European Financial Reporting Advisory Group held a joint outreach event in Brussels to discuss sustainability reporting standards for non-EU undertakings. The discussions focused on ensuring that Japanese companies subject to both SSBJ and EU requirements can meet their obligations with reduced reporting burdens through aligned standards. This development advances the international consistency of ESG disclosures and helps prevent duplicative reporting requirements for firms operating across both jurisdictions. [Published: 26 Sep 2026]

📖 ESRS–ISSB standards: Interoperability guidance📖 2026 Sustainable investment trends

Australia/NZ

Indigenous Compensation Dispute

29 September 2026

Woodside Energy is currently engaged in a $300 million compensation battle with the Ngarluma Yindjibarndi Foundation Limited (NYFL) over the use of traditional lands in Western Australia’s Pilbara region. Negotiations between the ASX 200-listed gas producer and the Traditional Owners have reached a stalemate after Woodside offered $87 million over 12 years, a figure the NYFL claims is $303 million below a fair settlement for the use of land where sacred sites were cleared for the Karratha Gas Plant. The dispute highlights ongoing tensions over the adequacy of historical land access agreements and the scale of compensation required for the long-term impact of resource projects on Indigenous cultural heritage.

📖 Posters & Resources – Reconciliation Australia📖 Stewardship in the critical minerals value chain: Assessing sustainability performance and risks in Asia

UK/Europe

Glass Lewis and Clarity AI Merger

30 September 2026

Proxy advisory firm Glass Lewis and AI-driven sustainability data provider Clarity AI announced a merger on September 28, 2026, with the transaction having closed on September 23, 2024. The combined company aims to integrate corporate governance, investment analysis, and sustainability data into a single platform to help institutional investors manage engagement and voting workflows. The merger specifically leverages Clarity AI’s strong European network and Glass Lewis’s presence in the U.S. to address evolving European regulatory and stewardship requirements. [Published: 28 Sep 2026]

📖 Rate the raters series📖 Measuring companies’ environmental and social impacts: An analysis of ESG ratings and SDG scores

UK FCA product-level climate reporting overhaul

30 September 2026

On September 25, 2026, the UK Financial Conduct Authority published Handbook Notice 144, finalising the removal of mandatory product-level climate reporting for asset managers and insurers. This reform eliminates the requirement for detailed public climate reports for approximately 9,000 individual products, saving the industry an estimated £20 million annually. The change shifts the focus toward entity-level disclosures to reduce administrative burdens and complexity. [Published: 29 Sep 2026]

📖 SUSREG annual report series📖 What do sustainability disclosures disclose?

To see all of the daily trends follow us on LinkedIn: Altiorem on LinkedIn

Webinars and events

★ Featured

The Pension Paradox: Deliberative Session

Building Bridges · 7 October 2026 · Geneva, Switzerland · in_person

A session exploring the contradictions and systemic challenges facing pension funds in a sustainable transition.

Fixing financial and economic systems
Community-wide Clean Energy: Innovative Solutions for Local Governments

World Resources Institute · 6 October 2026 · Online · webinar

Webinar exploring clean energy transition strategies for local government authorities.

Issue/sector focused research
Fixing the Climate? The Risks of Solar Geoengineering

Heinrich-Böll-Stiftung · 6 October 2026 · Online · webinar

A session discussing the risks associated with solar geoengineering and the argument for a non-use agreement.

Issue/sector focused research
Redefining fiduciary duty – acting in members’ best interests in 2026

Investors for Purpose · 6 October 2026 · London, UK · in_person

A policy masterclass exploring how fiduciary duty for pension funds must evolve to address climate transition, nature loss, and systemic market risks.

Governance and directors’ duties
Sustainability and Trust in Seafood: 10 Years of Seafood Consumer Research in the USA and Canada

Marine Stewardship Council (MSC) and GlobeScan · 7 October 2026 · Online · webinar

A webinar reviewing a decade of consumer research on seafood sustainability, ocean health, and conscious consumerism in North America.

Issue/sector focused research
2026 OECD Forum on Green Finance and Investment

OECD · 7 October 2026 · Paris and online · webinar

The 13th Forum focusing on investing for energy security, transition, and resilience in a changing global economy.

Fixing financial and economic systems
Every last girl: a journey to educate India’s forgotten daughters

London School of Economics and Political Science · 6 October 2026 · India · in_person

Safeena Husain discusses community-led change and strategies for reaching marginalised populations to transform educational outcomes in India.

Stakeholder engagement and advocacy
Responsible AI: What Investors, Boards and business leaders need to know

Thomson Reuters Foundation · 5 October 2026 · London, UK · in_person

An in-person session exploring the implications of AI for corporate governance and investment decision-making.

Governance and directors’ duties

For the full list of sustainable finance events visit our events page

From the community

★ Featured

Four pathways to a resilient economy within planetary boundaries

Stockholm Resilience Centre

This research story explores four transformative pathways to transition the global economy into a resilient state that operates within planetary boundaries.

Fixing financial and economic systems
Uruguay SLB update after latest reporting

anthropocenefii.org

An analysis of Uruguay’s sovereign Sustainability-Linked Bond (SLB) performance following its 2026 sustainability report, focusing on emissions intensity and forest area KPIs.

ESG Integration and analysis
The Illusion of Resilience in a Degrading Supply Chain

Inside Track

This article explores the systemic risks and lack of genuine resilience within global food supply chains in the face of environmental degradation.

Issue/sector focused research
Tackling labour market inequalities in the age of AI

London School of Economics and Political Science

Explores how AI is interacting with existing labour market inequalities and the role of government in shaping the future of work.

Fixing financial and economic systems
Philippines sets roadmap against forced labour, child labour and exploitation

International Labour Organization

The Philippines initiates a national roadmap to combat modern slavery and human trafficking to become an Alliance 8.7 Pathfinder country.

Stakeholder engagement and advocacy
Proxy season 2026: resilience in a shifting landscape

PRI

Opinion piece reflecting on the trends and outcomes of the 2026 proxy voting season.

Active ownership
Investors back Portuguese and German ventures addressing the risks of AI breaches

ImpactAlpha

VC firms are investing in cybersecurity startups like Ethical AI and CodeProtect to mitigate data leakage and ethical risks in artificial intelligence.

ESG Integration and analysis

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