The CS3D Digest #37
Ripple Research
Ripple Research works at the intersection of data science, behavior change, and social impact.
Welcome to the 37th edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: Shell beings investigated by the UK Advertising Standards Authority (ASA), Australian bank to stop financing fossil fuels, lack of sustainability data impacts investor confidence, Air New Zealand scraps their 2030 emissions targets, and global investor concerns over gaps in Japan's sustainability disclosure standards.
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What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
Shell's latest advertisement is facing scrutiny from the UK's advertising regulator, the Advertising Standards Authority (ASA), after receiving complaints that it misrepresents the company's commitment to clean energy. The latest investigation comes at a time when Shell is facing increasing scrutiny over its climate policies. In March 2024, Shell announced it would delay a 2030 carbon reduction target until 2050, and scrapped a further target to reduce the carbon intensity of its operations by 45 percent by 2035. The ASA's decision on the latest complaint is expected in the coming weeks.
Commonwealth Bank of Australia (CBA)?has announced that it will?stop financing fossil fuel companies?that don't align with the Paris Agreement's climate goals by the end of 2024. This decision comes amid growing concerns about the financial risks associated with climate change.?CBA has identified increasing insurance premiums,?property devaluation due to extreme weather events,?and the potential for future financial losses as key factors driving its policy shift.?The bank estimates that its exposure to home loans at high risk from climate-related disasters,?such as cyclones,?floods,?wildfires,?and sea-level rise,?amounts to billions of Australian dollars. By 2024, CBA will no longer provide new corporate or trade finance,?or bond facilitation to clients that cannot demonstrate a clear pathway to reducing emissions in line with the Paris Agreement's target of limiting global temperature rise to well below 2°C.
A new report by Deloitte and the Fletcher School at Tufts University has revealed that a lack of reliable Environmental,?Social,?and Governance (ESG) data is significantly impacting investor confidence in India.?Despite a growing interest in sustainable investments,?with 78% of institutional investors allocating up to 30% of their funds to ESG-focused organizations,?the quality and consistency of ESG data remain major concerns. The study attributes the decline in trust to several factors,?including inconsistent and incomparable ESG ratings,?high costs of data integration,?and a lack of measurable outcomes in corporate disclosures.?This has led investors to rely on more credible sources like audited disclosures and proprietary data systems. While frameworks like India's BRSR and the global CSRD are being developed to address these issues,?they have yet to be fully implemented.?Experts emphasize the urgent need for improved reporting standards to bolster investor confidence and facilitate informed decision-making.
Air New Zealand?has decided to scrap its 2030 carbon emissions reduction targets. The airline cited delays in new aircraft development,?insufficient sustainable aviation fuel (SAF) supply,?and regulatory hurdles as reasons for its withdrawal from the Science Based Targets Initiative (SBTi).?This move has raised concerns about the industry's commitment to reducing emissions and its reliance on unproven solutions like SAF. While Air New Zealand maintains its net-zero target for 2050,?experts argue that this long-term goal is insufficient without concrete short-term commitments.?The airline industry's dependence on growth,?coupled with the slow pace of technological advancements and the limited availability of SAF,?has created a perfect storm for missed emissions targets.
领英推荐
Several of the world’s leading investors, including Norges Bank Investment Management (NBIM), Legal & General Investment Management (LGIM), and the Glasgow Financial Alliance for Net Zero (GFANZ), have expressed concerns about discrepancies between Japan’s proposed sustainability disclosure standards and those established by the International Sustainability Standards Board (ISSB). These concerns were voiced during a recent consultation by the Sustainability Standards Board of Japan (SSBJ). NBIM pointed out that Japan’s proposed standards have different reporting periods for sustainability disclosures compared to financial reporting periods, which could impede stakeholders' understanding of the financial impacts related to sustainability risks and opportunities. In addition to investor concerns, the non-profit organization ClientEarth advocated for the Japanese standards to require companies to align with a 1.5°C climate scenario and disclose credible transition plans. This would ensure that companies are not only reporting on sustainability but are also actively contributing to global climate goals.
Voices from this week
??Anna Katharina Bierre, Senior Consultant Nordic Sustainability , shares a comprehensive explainer on Forced Labour Regulation, aimed at prohibiting the sale, import, or export of products made using forced labor practices across the EU markets
??Andreas Rasche, Professor and Associate Dean at 丹麦哥本哈根商学院 , shares guidance documents published by the EU on the new sustainability regulations including CSRD, CSDDD, and SFDR.
??The Remedy Project encourages businesses to develop non-judicial grievance mechanisms, in line with United Nations Guiding Principles on Business and Human Rights (UNGPs), that are effective, accessible, and inclusive.
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