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Business Council for Sustainable Development Australia
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Stay updated with the latest from the Business Council for Sustainable Development Australia (BCSDA) and our network partners. Today, join us in celebrating the 10th Fiona Wain Oration to be delivered by Professor John Daley AM. Also this week, discover a breakthrough in waste management with AI-powered lithium-ion battery extraction, and explore the implications of Exxon's recent litigation dismissal for corporate climate action. We also cover the EU’s historic $3 billion investment in clean energy, Denmark’s pioneering carbon tax on agriculture, Australia’s alignment with global sustainability standards, and the latest CDP and BCG 2023 Supply Chain Report.
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JOIN US TODAY, to celebrate a Decade of Insightful Orations with Professor John Daley AM at Our 10th Anniversary Event.
Initiate the new financial year with profound insights from one of Australia’s foremost public policy experts, Professor John Daley AM, at the 10th Anniversary of our distinguished Oration. As a former Partner at EY Port Jackson Partners and former inaugural Chief Executive of the Grattan Institute, Professor Daley brings a wealth of knowledge from his pivotal works on institutional reform, public trust, and policy innovation.
This enlightening session is designed not just to reflect on past achievements but to steer forward-thinking in strategic planning and policy making.
A new system, developed through a collaboration between The University of Manchester academics and AI specialists at Lion Vision, is set to revolutionise how we handle hazardous waste. This technology uses advanced vision systems and real-time analytics to extract lithium-ion batteries from waste streams efficiently and safely.?
Why This Matters: Lithium-ion batteries, found in numerous everyday electronics, are flammable and pose significant environmental risks if not properly disposed of. This new system can analyse over half a million images in 24 hours, detecting more than 600 cylinder batteries per hour. It can also identify over 40 battery sub-types and other hazardous objects like vapes.?
Key Features:
- Real-Time Analytics: Utilises machine learning to locate and safely remove batteries from waste.
- Scalability: Already deployed at various sites across the UK, including SWEEEP in Kent, which processes 100 tons of electronic waste daily.
- Environmental Impact: Aims to drastically reduce the environmental damage caused by improper battery disposal.
In a significant turn of events, Exxon's recent legal battle against shareholder climate activists has ended, but this is arguably just one part of a larger ongoing struggle over corporate responsibility and climate action.?
Here's a breakdown of the situation and its implications.
The Litigation: ExxonMobil faced a lawsuit from Arjuna Capital, a shareholder advocating for stronger climate policies. The case was dismissed by a Texas federal judge after Arjuna Capital agreed not to file further climate-related resolutions with Exxon. This follows the withdrawal of a resolution that sought tougher emissions targets.?
The Outcome: The dismissal of the case is a victory for activist investors, but it leaves a lot of unanswered questions. Exxon, backed by lobbyists, wants the ability to exclude shareholder proposals that they believe are not beneficial for shareholder value. This case highlights the tension between corporate management and activist shareholders.
Why It Matters:
- Future Litigation: There is the possibility of more lawsuits as companies and activists continue to clash over the use of SEC rules to exclude shareholder resolutions. This could lead to increased caution among activists, potentially reducing the number of resolutions filed in the future.
- Pending Cases: Another important case to watch is in the U.S. Court of Appeals for the 5th Circuit, where the National Association of Manufacturers is challenging the SEC's power to prevent companies from excluding shareholder proposals.
- SEC Leadership Changes: The outcome of the upcoming presidential election could influence SEC leadership, potentially making it more favourable for companies looking to block climate resolutions.
The European Commission has recently announced a significant investment of nearly €3 billion (USD $3.2 billion) through the EU’s Modernisation Fund, aiming to advance clean energy and industrial decarbonization projects. This move marks the largest disbursement to date from the fund, which uses revenues from the EU Emissions Trading System (EU ETS) to support energy modernisation and efficiency improvements across lower-income EU member states.?
The latest allocation will support 39 projects in 10 countries, including Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia, with newly added Greece, Portugal, and Slovenia. These initiatives span across various sectors, promoting the deployment of photovoltaic systems, renewable hydrogen production, and advanced energy storage solutions, all contributing to significant reductions in greenhouse gas emissions and improvements in energy efficiency.
Implications for Business Leaders: For business leaders, especially those invested in sustainability and compliance, this development is a clear indicator of the shifting landscape towards greener economies. The substantial funding and scope of projects supported by the EU ETS demonstrate a growing emphasis on sustainability, presenting both challenges and opportunities for industries to innovate and adapt to stricter environmental standards.
?Check out the key takeaways from the second session of WBCSD’s #ClimateTransitionRoadmaps Masterclass series in partnership with Boston Consulting Group (BCG) on The Climate Drive: https://lnkd.in/g2hC78pp .
The masterclass delved into strategies for organisations to systematically reduce emissions by analyzing #decarbonisation levers using tools like MACCs, prioritizing based on cost and non-financial considerations to mitigate risks, unlock opportunities, and align with corporate goals for a sustainable future.?
Here's a preview of the key learnings:
? (Re)Identify and categorize decarbonization levers
? Prioritize levers using a Marginal Abatement Cost Curve and other considerations
? Navigate cost implications when deploying abatement levers
? Unravel opportunities and create business cases for investment
Business associations have a great influence on policymakers. They can play a key role in helping to drive an agenda that protects climate and nature.
? But they don’t always play that role.?
That’s why companies have to do their best to ensure that the business associations they are members of work in alignment with science-aligned climate policy.?
This guide helps companies assess, align and accelerate business association memberships with positive climate policy engagement. ??
?? Europe faces a pivotal moment. As China and the US invest heavily in clean energy, the EU must stay competitive. The Strategic Agenda to be adopted by heads of state and government during this week’s European Council meeting will define Europe’s priorities for the next five years, providing guidance to EU institutions.
To keep a stable planet and 1.5C in sight, with well-functioning economies, the EU must continue to lead by transitioning to a climate-neutral and socially fair Europe.
We know that European citizens want climate action, with 90% of people in some of the biggest EU economies urging unity to combat climate change. Building on the Green Deal, decisions made this week can drive job creation, improve public health, and foster resilient economies.?
Businesses are central to delivering a resilient European economy. They understand that climate risk is economic and financial risk. Recently, more than 100 business leaders called for a robust 2040 climate target and rapid decarbonisation. And over 260 businesses are urging governments to phase out unabated fossil fuels and make the shift to clean energy.?
As the voice of leading businesses, bringing together thousands of European companies large and small, We Mean Business Coalition calls on the European Council to double down on emissions cuts, maintaining its holistic approach to climate, nature, society and economy. Later is too late.
Denmark is proposing to introduce a groundbreaking carbon tax on agriculture, starting at DKK 300 per tonne of CO2e in 2030, increasing to DKK 750 by 2035. This move is part of an ambitious plan to reduce emissions and revamp agricultural practices, targeting a reduction of 1.8 million tonnes of CO2e by 2030. Additionally, a DKK 40 billion green fund will support initiatives like afforestation and strategic land management, showcasing Denmark's commitment to sustainability.
Analysis: This policy marks a significant shift in tackling agricultural emissions, crucial for addressing climate change. The phased approach, coupled with initial deductions, balances compliance with minimal financial impact on farmers. Denmark's integration of land management with environmental goals sets a precedent in sustainable agriculture.
Relevance to Sustainable Development Goals (SDGs)
- SDG 13: Climate Action - The carbon tax mitigates climate change by reducing agricultural emissions.
- SDG 15: Life on Land - Afforestation and strategic land acquisition enhance biodiversity and sustainable land management.
- SDG 12: Responsible Consumption and Production - Modernising food production aligns with sustainable consumption and production patterns.
The National Health Survey 2022 published by the Australian Bureau of Statistics has delivered some eye-opening insights into the health and wellbeing of Australians.
Key Findings:
- Fruit and Vegetable Consumption: Only 45.5% of adults in NSW met the fruit consumption recommendation. A staggering 93.5% of Australian adults did not meet the daily vegetable intake recommendation.
- Physical Activity: Victoria showed progress, with compliance to physical activity guidelines increasing from 16.8% in 2017-18 to 24.5% in 2022.
- Alcohol Consumption: High alcohol consumption rates were noted in NT (31.1%), WA (29.9%), Queensland (29.4%), and SA (29.3%).
- Chronic Conditions: Tasmania has the highest prevalence of at least one chronic condition (58.4%).
Mental and behavioural conditions are most prevalent in Queensland (30.8%).
Smoking: ACT boasts the lowest daily smoking rate at 5.9%.
Sustainable Development Goals (SDGs) Relevance: SDG 3: Good Health and Well-being
- Target 3.4: Reduce premature mortality from non-communicable diseases by one third.
- Indicator 3.4.1: Mortality rate attributed to cardiovascular disease, cancer, diabetes, or chronic respiratory disease.
- Relevance: The high rates of chronic conditions and mental health issues highlighted by the survey necessitate focused health policies.
?The Australian Bureau of Statistics (ABS) revealed a significant rise in the Consumer Price Index (CPI), which climbed by 4.0% annually in May 2024, up from 3.6% in April. This increase, driven by notable spikes in housing, food, transport, and alcohol and tobacco prices, highlights critical areas where businesses must adapt and innovate to maintain resilience and growth.
?Key CPI Contributors and Their Impact
- Housing (+5.2%): Housing costs surged, with rents up by 7.4%, new dwelling prices by 4.9%, and electricity costs rising by 6.5% (adjusted for rebates: +14.5%).
- Food and Non-Alcoholic Beverages (+3.3%): Within this category, fruit and vegetables saw a 4.4% increase, and meals out and takeaway foods rose by 4.2%.
- Transport (+4.9%): Automotive fuel experienced a 9.3% spike, impacting overall transport costs.
- Alcohol and Tobacco (+6.7%): Substantial increases in this category also influenced the CPI rise.
?Sustainable Development Goals (SDGs) and Relevance: The CPI surge directly impacts several SDGs, emphasising the need for targeted strategies to address these challenges:
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- SDG 1 (No Poverty): Rising housing and electricity costs exacerbate financial stress on low-income households.
- SDG 7 (Affordable and Clean Energy): The significant rise in electricity prices underscores the urgent need for sustainable energy solutions.
- SDG 11 (Sustainable Cities and Communities): High rental increases signal mounting pressure on urban housing markets.
- SDG 12 (Responsible Consumption and Production): Food price fluctuations highlight the importance of sustainable food systems.
- SDG 13 (Climate Action): Volatile fuel prices and increased transport costs necessitate robust climate and energy policies.
The guide helps companies navigate the complex landscape of voluntary carbon credits and the voluntary carbon market (#VCM). It demonstrates how a portfolio approach to acquiring voluntary carbon credits allows businesses to balance their carbon credit strategies and business needs.?
This approach combines both the immediate benefits of natural climate solutions (#NCS) and the long-term need for technology-based solutions (TbS), which are crucial for permanently removing and storing CO2. Investing in these emerging technologies is essential as companies work towards their #netzero targets.?
Developed in collaboration with Bain & Company, the frameworks in this guide will help capalyse action and investment in balanced voluntary carbon credit portfolios and inspire businesses to join the journey to achieve global climate targets.
It examines the key stages of the investment process, providing clarity on how to evaluate the integrity of #NCS investments and navigate important considerations, including investment structure and proper due diligence.
Launched in London as part of #LCAW, to a packed room, this guide will help investors capitalise on the investment opportunity of NCS and to expand the role #naturebasedsolutions (#NbS) play in limiting warming to 1.5C.
The International Council on Mining and Metals (ICMM) has announced it welcomes the new Taskforce on Nature-related Financial Disclosures (TNFD) Sector Guidance for Metals and Mining. This initiative marks a significant step towards integrating nature into economic decision-making, helping companies identify, manage, and disclose nature-related issues.?
As TNFD's piloting partner, ICMM collaborated with 13 companies and NGOs like BirdLife International and Fauna & Flora, creating sector-specific guidance to address unique challenges. This aligns with a recent Oxford University report highlighting potential economic shocks from biodiversity loss, underscoring the urgency of nature-focused strategies.
?In January, ICMM’s 24 members, representing one-third of the global sector, committed to transformative actions on nature. These include enhanced disclosures by 2026 and 2030, reflecting deep impacts on biodiversity.
How is your organisation addressing nature-related financial disclosures?
UNDP is co-hosting Nature for Life hub, a platform for global dialogue and action towards a #NaturePositive future - and they need your input!?
This year, they’re inviting you to reimagine the future where we transform our relationship with nature. Join the global conversation by submitting:
?? A short video
?? A podcast
?? Any other creative content!
You can be part of the mission to the narrative for our planet – a future where humans and nature thrive in harmony.
In a recent article for The Nature Conservancy, Barbara Kuznik writes on this historic achievement for Europe, with the adoption of this law by 27 countries signifying a unified commitment to restoring our natural world - which is critical for both nature and people.?
The new law aims to:?
?? Unlock significant investment in nature and biodiversity, with specific targets including reversing the decline of pollinators and restoring 25,000 kilometers of rivers to free-flowing conditions.
?? Restore at least 20% of the EU's land and seas,
?? Solidify Europe's leadership in global #Biodiversity restoration and protection efforts.
From the importance of trees and soil in sequestering and storing carbon, to the role that nature-based climate solutions play in protecting the land from floods - there are many examples of the symbiosis between nature and climate.
In Business for Nature’s latest article to support businesses in developing nature strategies, we explore how creating a strategy for one can support a plan for the other. Companies that already have a climate or sustainability strategy will already have many of the foundations required to build a nature strategy, namely:
?? Knowing how to carry out a materiality assessment.
?? Understanding how they can mitigate their impacts.
?? Having policies and procedures in place, such as strong governance structures and tying executive compensation to progress towards targets.
?? ASSESS – Measure, value and prioritize your impacts and dependencies on nature to ensure you are acting on the most material ones.
?? COMMIT – Set transparent, time-bound, specific, science-based targets to put your company on the right track towards operating within the Earth’s limits.
?? TRANSFORM – Contribute to systems transformation: avoid and reduce negative impacts, restore and regenerate, shift business strategy and models, and advocate for policy ambition.
?? DISCLOSE – Track performance and prepare to publicly report material nature-related information throughout your journey.
The ‘High-level Business Actions for Nature’ guide organizations through the steps they can take to contribute to a #NaturePositive world. The actions lead businesses through the available tools, frameworks and initiatives to support them in assessing their relationships with nature, committing to action and target setting, transforming their practices and disclosing nature-related information.
We welcome Norton Rose Fulbright as a new member of the Business Council for Sustainable Development Australia.
Norton Rose Fulbright is one of the world’s largest commercial law firms with a commitment to operating sustainably. The company is taking direct action to support UN SDG 13 Climate Action, and also has strategic priorities that advance sustainable development, including diversity, equity and inclusion and social impact.?
Learn more about Norton Rose Fulbright here: https://buff.ly/3W6ABYZ
Responsible Investor is reporting Australia has made a pivotal decision to expand its sustainability standards beyond climate-only, aligning closely with the International Sustainability Standards Board’s (International Sustainability Standards Board (ISSB)) full disclosure standards, IFRS S1 and IFRS S2.
This shift follows considerable feedback from the finance sector and global investors, highlighting the need for comprehensive sustainability reporting.
Key Highlights:
- Broader Alignment: The Australian Accounting Standards Board (AASB) plans to adopt ISSB standards on a voluntary basis, addressing both climate and general sustainability concerns.
- Stakeholder Influence: Initial drafts were criticised for focusing solely on climate, prompting this significant policy reversal.
- Regulatory and Investment Implications: Beginning January 2025, businesses will need to prepare for comprehensive sustainability disclosures, with mandatory assurance by the fourth year. Aligning with international standards will enhance transparency and appeal to global investors.
Strategic Business Implications:
- Compliance Preparation: Companies should develop internal systems to meet the new reporting standards by 2025.
- Sustainability Practices Enhancement: Businesses need to broaden their focus to encompass various sustainability metrics beyond just climate.
- Stakeholder Engagement: It's crucial to collaborate with industry peers and investors to align strategies and disclosures effectively.
The Taskforce on Nature-related Financial Disclosures (TNFD) and the GROUPE CONSULTATIF SUR L'INFORMATION FINANCIERE EUROPEENNE - EUROPEAN FINANCIAL REPORTING ADVISORY GROUP (EFRAG) have released a crucial guide to aid companies in aligning their nature-related reporting with the #EuropeanSustainabilityReportingStandards (ESRS).
This initiative marks a significant stride towards standardising sustainability disclosures, enhancing transparency, and promoting sustainable development.
Key highlights include:
- Alignment with CSRD Requirements: This guide offers clarity for companies to comply with the Corporate Sustainability Reporting Directive (CSRD), expanding mandatory disclosures to over 50,000 companies.
- Double Materiality Approach: Emphasizes the need to consider both environmental impacts and financial implications, using the LEAP approach for assessing nature-related issues.
- Global Collaboration: Reflects a collaborative effort between EFRAG and TNFD over two years, ensuring consistency and robust data for stakeholders.
Their latest report uncovers critical insights into Scope 3 emissions, revealing that supply chain emissions are on average 26 times higher than operational emissions. This highlights the urgent need for comprehensive management and strategic action.?
Key findings include:
? Corporates with an internal carbon price that is mandated for all business decisions are 4.1x more likely to have a 1.5°C-aligned transition plan with a Scope 3 target (upstream).
?Corporates with climate-responsible board are 4.8x more likely to have a 1.5°C-aligned transition plan with a Scope 3 target (upstream).
?Corporates that engage with suppliers are 6.6x more likely to have a 1.5°C-aligned transition plan with Scope 3 target (upstream).
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