BCSD Australia News
Business Council for Sustainable Development Australia
Galvanizing forward-thinking companies and organizations to accelerate the transition to a sustainable Australia.
Stay updated with the latest from the Business Council for Sustainable Development Australia (BCSDA) and our network partners. This week, discover a breakthrough in AI-powered lithium-ion battery extraction and explore the implications of Exxon's litigation dismissal for corporate climate action.
We also cover the EU’s $3 billion clean energy investment, Denmark’s pioneering carbon tax on agriculture, and Australia’s alignment with global sustainability standards. Learn about the new Minoro platform for building decarbonisation and the latest CDP and BCG 2023 Supply Chain Report.?
Additionally, navigate new embodied carbon regulations in real estate, gain insights from the Global Resources Outlook 2024, and explore LEGO's new emission standards for suppliers. Finally, delve into the dramatic drop in battery prices in China, key findings from the GlobeScan/ERM Sustainability Leaders Survey 2024, and updated guidance for setting science-based targets for nature.
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The Business Council for Sustainable Development Australia (BCSDA) hosted the Fiona Wain Oration on July 1, 2024, featuring Professor John Daley, one of Australia’s foremost public policy experts.
The event marked a significant kick-off to the new financial year, highlighting the commitment of Australian businesses and thought leaders to sustainability and innovation.
The video of Professor Daley's insightful oration is now available to view and share on the BCSDA YouTube channel. You can watch it here .
The GRO 2024 reveals a staggering 400% rise in material extraction over the last 50 years, stressing the need for sustainable resource consumption and production.
Businesses must lead the charge in adopting circular economy practices, optimizing resource use, and transitioning to renewables. Engage with policymakers to foster sustainable practices.
This brief, co-authored by the World Business Council for Sustainable Development and Systemiq Ltd., outlines actionable steps for businesses to drive change and reduce environmental impacts. ????
To achieve this transformation effectively and profitably, a standardized approach is crucial.?
That's why WBCSD developed the #CircularTransitionIndicators (CTI), a robust metrics framework positioned to be the universal language of circular performance and accountability.?
On 25 June, we hosted the second workshop for the CTI Fashion Initiative with Lis J Suarez Visbal. Focusing on a new approach to measure the social impact to have a just transition to a circular economy, this was a meaningful step toward aligning on a robust circularity metrics framework for the fashion industry.
Minoro is not just a tool; it's a game-changer for businesses committed to reducing their carbon footprint. It offers vital insights into the what, when, and where of building development, empowering stakeholders to make informed decisions that lower whole-life carbon emissions.
An international resource, and free to use, the platform has been developed by Grimshaw in collaboration with over 20 supporting organisations - including WBCSD, RIBA , Architecture 2030 , World Green Building Council and several national Green Building Councils across the globe.
Navigating New Embodied Carbon Regulations: What are the Strategic Insights for Real Estate Leaders?
The real estate industry is undergoing significant changes with new regulations related to embodied carbon.
California and Vancouver now require disclosure and improvement of embodied carbon for commercial buildings, posing potential business risks for non-compliance. This shift emphasises the need for strategic investments in sustainable building materials and practices to meet regulations and gain a competitive edge.
The U.S. Green Building Council emphasis on embodied carbon in #LEED v5 draft, along with potential additional requirements in cities like Boston and Los Angeles, underscores the urgency for real estate companies to adapt and leverage tools for managing embodied carbon data.
This necessitates strategic partnerships with organizations specializing in carbon management and data analytics to ensure compliance and demonstrate commitment to sustainability.
the LEGO Group , the world’s largest toy company, has announced a new Supplier Sustainability Program, requiring its biggest suppliers to share data about emissions and set reduction targets starting in 2026. This initiative aligns with Sustainable Development Goal 13: Climate Action, specifically targeting SDG Target 13.2 on integrating climate change measures into national policies, strategies, and planning.?
Lego's commitment to cutting its carbon footprint by 37 percent by 2032 and reaching net zero by 2050 supports SDG 13.3 on improving education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.?
The company's focus on encouraging suppliers to set emissions reduction targets also aligns with SDG 12: Responsible Consumption and Production, particularly SDG Target 12.6 on encouraging companies to adopt sustainable practices and to integrate sustainability information into their reporting cycle.?
Lego's efforts to address the environmental impact of its partners and supply chain are in line with SDG 17: Partnerships for the Goals, emphasising the importance of multi-stakeholder partnerships to share knowledge, expertise, technology, and financial resources for sustainable development.
This initiative by Lego demonstrates a strong commitment to sustainability and aligns with the global efforts to combat climate change. It sets a precedent for other companies to follow suit and take responsibility for their environmental impact.
In the ever-evolving landscape of the automotive and energy sectors, few developments are as transformative as the current plunge in lithium iron phosphate (LFP) battery prices in China. In a fascinating Bloomberg article, over the past year prices for LFP battery cells have dropped by a staggering 51%, reaching an average of $53 per kilowatt-hour (kWh). This dramatic decline, driven by falling raw material costs, overcapacity, and rapid technological advancements, holds significant implications for the global market.
The Factors Driving Down Battery Prices
- Raw Material Costs: Raw material prices, especially for cathodes, have seen a sharp decline over the last 18 months. The cathode, which previously accounted for 50% of the total cost in an LFP cell, now comprises less than 30%. This reduction is a major contributor to the overall price drop.
- Overcapacity: China’s battery production capacity far exceeds global electric vehicle (EV) demand. This overcapacity has forced manufacturers to cut prices to maintain market share. Average capacity utilisation of battery plants in China has fallen from 51% in 2022 to 43% in 2023, with further declines expected.
- Technological Advancements: Chinese battery giants like CATL and 比亚迪 are heavily investing in research and development, automation, and new products.
Always a good read, the GlobeScan/ERM Sustainability Leaders Survey 2024 has once again provided a comprehensive look into the priorities, challenges, and groundbreaking developments shaping the sustainability landscape.
?This year’s survey gathered responses from approximately 500 sustainability experts across more than 60 countries, reflecting a truly global perspective.
?Key Takeaways
- Climate Change Remains Top Priority: Climate change continues to be the most urgent sustainability challenge, followed closely by biodiversity loss, deforestation, and water scarcity. Notably, food security and water pollution have surged in urgency compared to previous years.
- Legislation and Standards Leading the Way: The expansion of sustainability-related legislation and the creation of new disclosure standards are viewed as the most significant positive developments. These regulatory advancements are driving companies to integrate sustainability into their core strategies and operations.
- Corporate and Government Leaders: Companies like Patagonia , 联合利华 , Natura &Co , and 宜家 are recognised for their effective integration of sustainability and impactful actions. On the governmental front, Sweden, Germany, and Denmark are hailed as leaders in advancing sustainable development.
- Sector Performance: The forest products and life sciences sectors are praised for their sustainability efforts, while the chemicals and extractive sectors are seen as lagging behind.
- Regional Insights: While North America reports a significant backlash against sustainability efforts, other regions show varying levels of resistance. Europe and Latin America display more optimism, with experts highlighting positive developments in legislation and public awareness.
?? As a partner of the Science Based Targets Network, CDP announced the main 2024 release of new and updated guidance for companies to set science-based targets for nature , informed by SBTN’s trail-blazing cohort of pilot companies.
?? This guidance enhances the feasibility and practicality of SBTN’s methods while maintaining ambition and scientific rigor.
New resources to improve accessibility and drive action have also been introduced, including a comprehensive corporate manual that serves as an entry-point into the technical guidance.?
SBTN’s target validation pilot has highlighted key benefits of target-setting and reinforced that SBTN is closing a critical gap in corporate sustainability:
?? Increases ambition and drives science-based action on nature
?? Provides credibility and a common language to advance engagement with stakeholders
?? Acts as a trusted compass for companies to get to the right solutions
The The Business Commission to Tackle Inequality brought together 80 senior leaders from top banks, investors, foundations, development banks/DFIs, NGOs, & think tanks, in collaboration with 波士顿谘询公司 & the Council for Inclusive Capitalism .
WBCSD was honoured to have Dr. Mahmoud Mohieldin, Chair of the Glasgow Financial Alliance for Net Zero (GFANZ) , Africa Advisory Board and UN Special Envoy on Financing the 2030 Sustainable Development Agenda, deliver opening remarks. The workshop featured two insightful panels with experts from ICMA - International City/County Management Association , 英国伦敦政治经济学院 , Grantham Research Institute on Climate Change & the Environment , UK Impact Investing Institute, Barclays , ING & Federated Hermes .
?Key discussions focused on:
?? Diverse funding pools and financing mechanisms for transition plans
?? Prioritising frontrunner metrics/KPIs based on materiality & feasibility
?? The potential of blended finance
?? The role of key global organisations in guiding & influencing just transitions
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As we continue to witness the undeniable impacts of climate change, the imperative for businesses to integrate climate resilience into their strategic planning has never been greater. The updated 2023 BSR Climate Scenarios report, "A Tool to Drive Resilient Business Strategy," authored by Ameer Hamza Azim offers an essential guide for companies aiming to navigate the complexities of climate-related risks and opportunities.
This comprehensive analysis utilises the Network for Greening the Financial System (NGFS) framework to present three extended climate scenarios, each with distinct implications for business strategy and resilience.
Key Highlights from the Report:
1. Purpose: The report's primary goal is to assist businesses in comprehending and preparing for various climate scenarios. By employing the NGFS framework, companies can anticipate potential climate futures and integrate this foresight into their strategic planning, ensuring they remain resilient and competitive.
2. Scenarios: The report elaborates on three critical climate scenarios:
Current Policies: No additional climate policies beyond those implemented by 2020, leading to at least 3°C of warming by 2100.
Net Zero 2050: Ambitious global actions to achieve net-zero emissions by 2050, resulting in warming peaking at 1.6°C in 2060 and declining to 1.5°C by 2100.
Delayed Transition: A decade of inaction followed by stringent policies starting in the 2030s, leading to peak warming of 1.8°C by 2100 but with high social and economic costs.
?The Investor Group on Climate Change (IGCC) (IGCC) is hosting its annual Climate Finance and Investment Summit on 7-8 November in Melbourne. This event will bring together investment experts, policymakers, academics, and industry associations to discuss the transition towards a decarbonised economy.
?Key topics include:?
- Strategic insights for trustees and executives
- Local and global policy outlook
- Litigation and regulatory changes
- Climate and economic science updates
Detailed sessions will cover:
- Mandatory disclosures
- Transition planning for investors and businesses
- Investment models for resilience and adaptation
The Business Council for Sustainable Development Australia (BCSDA) welcomes the release of the consultation paper on Low Carbon Liquid Fuels by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts. This pivotal document marks a significant step towards Australia's net zero emissions target by 2050 and supports sustainable development across multiple sectors.
?? Relevance to SDGs:
- SDG 7: Promotes renewable energy usage.
- SDG 9: Encourages emission reduction and innovation in sustainable technologies.
- SDG 12: Enhances material footprint management.
- SDG 13: Reduces greenhouse gas emissions.
- SDG 17: Fosters international cooperation.
?? Business Case for Low Carbon Liquid Fuels:
- Economic Benefits: Job creation, GDP growth, and enhanced energy security.
- Environmental Impact: Significant reduction in greenhouse gas emissions.
- Competitive Advantage: Early adoption positions companies as sustainability leaders.
The Forum will bring together community voices, sector innovators and policymakers from across Australia and across sectors, including industry, finance, First Nations-led organisations, academia, community groups, civil society organisations, and all levels of government.
The Better Futures Forum will be held at the National Film and Sound Archive of Australia in Canberra.
Forests are in crisis - the world is currently losing 17 football pitches of forest every minute to #Deforestation. Therefore, it's crucial to involve more people in conservation to guard biodiversity loss and climate change.
With the UEFA EURO 2024 underway, Trillion Trees - BirdLife, WCS, WWF has partnered with Football for Forests , an initiative that seeks to make the football pitch a measure of reforestation, restore tropical forests and mobilise the world’s 3.5 billion football fans to help.
Football for Forests brings together the core principles of football - community and teamwork, with awareness raising around:?
?? The loss of our world’s forests.
?? The impacts of climate change.
?? How, together, we can make a real difference to restore our planet.
?? Exciting News! ??
?Co-convened by United Nations Global Compact, United Nations Department of Economic and Social Affairs, International Organization of Employers and WBCSD – World Business Council for Sustainable Development, the SDG Global Business Forum provides an annual platform to showcase business impact in driving sustainability transformation locally and globally??
Join the 2024 SDG Global Business Forum to collaborate with business leaders, innovators, and problem solvers from the private sector, Governments, and civil society worldwide.?
Co-create business-driven solutions to accelerate the implementation of the Sustainable Development Goals (SDGs)!
The 2024 Forum will spotlight SDGs under review this year:
?? Goal 1: No poverty
?? Goal 2: Zero hunger
?? Goal 13: Climate action
?? Goal 16: Peace, justice, and strong institutions
?? Goal 17: Partnerships for the goals
Recent McKinsey & Company data (see below) shows an appreciable decline in the importance of sustainability/ESG (Environmental, Social, Governance) considerations in purchase decisions among Gen Z and Millennials. In contrast, Gen X and Baby Boomers in Australia and the Netherlands continue to prioritise ESG.
?? Their Findings:
- Gen Z: 5 out of 6 nations report a decline in ESG interest.
- Millennials: Universal decline in ESG consideration.
- Gen X & Boomers: Sustained focus on ESG in Australia and the Netherlands.
?? Why This Shift?
- Economic Pressures: Rising living costs, student debt, and stagnant wage growth mean younger generations prioritize affordability and practicality over ESG factors. The financial burden makes immediate value more critical than long-term sustainability considerations.
- Financial Stability: Gen X and Boomers have greater financial security, allowing them to prioritise ESG in their purchases. This group can afford to invest in sustainability without compromising their financial stability.
- Consumer Behaviour Trends: Younger consumers are more responsive to immediate financial constraints, while older consumers have established values around sustainability and ethical consumption.
Newsletters from our Global Network Partners
Turkey: https://www.dhirubhai.net/pulse/skd-türkiye-haftal?k-sürdürülebilirlik-bülteni-9-skdturkiye-uwr2f/