The E in ESG: Sustainability News Roundup
The E in ESG curates the week’s latest #sustainability news; focusing on regulatory developments, innovation, and the intersection of #environmental and organizational best practices.?As The Economist stated in item #3 this week “It is better to focus simply on the e.”
This week's latest:
1.??Why Every Tech Company Needs #ESG at the Core of Its Strategy
“ESG initiatives are gaining steam as technology companies refine how they measure progress toward achieving their social goals and communicating positive values. The key to embracing #ESG is to embody and integrate these principles across every aspect of the business, rather than conducting them as isolated sideline projects, with four critical strategies:
·?????Ensure that all operations and compliance promote health and sustainability.
·?????Protect the environment through a low-carbon business model.
·?????Improve the lives of millions with human-oriented innovation.
·?????Engage with emerging companies throughout the ecosystem to promote common goals.”
2.??Consumers care about #sustainability—and back it up with their wallets
“Products making #ESG-related claims averaged 28 percent cumulative growth over the past five-year period, versus 20 percent for products that made no such claims.
There is strong evidence that consumers’ expressed sentiments about #ESG-related product claims translate, on average, into actual spending behavior. And this suggests that companies don’t need to choose between #ESG and growth. They can achieve both simultaneously by employing a thoughtful, fact-based, consumer-centric #ESG strategy. The overarching result might be not just healthier financial performance but also a healthier planet.”
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3.??#ESG should be boiled down to one simple measure: #emissions (The Economist)
“It is better to focus simply on the e. Yet even that is not precise enough. The environment is an all-encompassing term, including biodiversity, water scarcity and so on. By far the most significant danger is from emissions, particularly those generated by carbon-belching industries. Put simply, the e should stand not for environmental factors, but for emissions alone. Investors and regulators are already pushing to make disclosure by firms of their emissions more uniform and universal. The more standardized they are, the easier it will be to assess which companies are large carbon culprits—and which are doing most to reduce emissions. Fund managers and banks should be better able to track the #carbon footprints of their portfolios and whether they shrink over time.”
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4.??Morningstar Introduces Global #Sustainable Activities Involvement Indexes
“?Morningstar, Inc. a leading provider of independent investment research, today introduces a new family of impact-focused #ESG indexes combining the strengths of leading global index provider Morningstar Indexes with the #ESG Impact Framework of leading #ESG research, ratings and data provider #Morningstar #Sustainalytics.
This?new series of nine equity indexes?spans five environmental and social impact themes which incorporate alignment to the UN Sustainable Development Goals (SDGs). To be included in the indexes, companies must pass stringent #ESG screens and have significant revenue aligned to one or more impact themes. To strengthen exposure to the impact themes, index weightings are tilted toward companies with the greatest percentage of revenue derived from SDG-aligned activities.”
5.??Securities and Exchange Board of India (SEBI) mulls regulatory framework on ESG disclosure, ratings, investing
“SEBI on Monday proposed a regulatory framework on ESG disclosures by listed entities, #ESG ratings in the securities market and #ESG investing by mutual funds in order to facilitate balance between transparency, simplification and ease of doing business in an evolving domain.”
6.??Legislators strike deal on a new standard to fight #greenwashing in the bond markets
“The “European Green Bonds Standard” (EUGBS), which companies issuing a bond can choose to comply with, will primarily enable investors to orient their investments more confidently towards more #sustainable technologies and businesses. It will also give the company issuing the bond more certainty that their bond will be suitable to investors seeking green bonds in their portfolio. The standard aligns with the more horizontal Taxonomy legislation which defines which economic activities can be considered as environmentally sustainable.”
7.??How to adapt your business to an ever-changing world
“With GreenCoding, software development becomes part of your #sustainability program, reducing energy use and greenhouse gas #emissions throughout your organization and your #supplychain.”
*Curated by Ed Weilage
8.????Competence #greenwashing and #ESG in shipping: What to watch
“As public awareness of climate change and #environmental challenges continues to grow, consumers are demanding more #sustainable products and services. In response, many companies are jumping on the “green” bandwagon, presenting their services as #environmentally friendly. When these claims are not accurate, this is known as “#greenwashing”.
An example of corporate #greenwashing is using vague or meaningless terms, such as “#ecofriendly -friendly” or “#green,” without providing any evidence to back up the claims. #Greenwashing can also involve using environmental symbols or labels that are not properly regulated or validated.
In the shipping industry, competence #greenwashing refers to companies that claim to have a high level of #environmental competence, such as low #carbon emissions or #sustainable practices, but in reality, they may not be as environmentally friendly as they claim.”
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9.??Gartner Top 10 Strategic Predictions for 2023 and Beyond
“No. 5: By 2025, without #sustainable AI practices, AI will consume more energy than the human workforce, significantly offsetting carbon-zero gains.”
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10. ??Global?expectations on financial institutions’ climate-related efforts continue to evolve.
“The Net-Zero Insurance Alliance (“NZIA”) launched a Target-Setting Protocol (the “Protocol”) that will require NZIA members to begin to set science-based decarbonization targets for their insurance and underwriting portfolios. In the U.S., the Federal Reserve Board continues to clarify its expectations on climate scenario analysis through detailed instructions provided to the six largest U.S. banks participating in its pilot #climate scenario analysis exercise.”
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11. EU takes further steps to bolster green industrial activity and a renewable hydrogen market.
“The European Commission published a set of policy proposals entitled the Green Deal Industrial Plan that are designed to improve the European Union’s low-carbon industrial capacity,?focused on simplifying regulatory requirements, easing access to sufficient funding, enhancing skills and opening supply chains. The European Commission also adopted two new Delegated Acts clarifying the criteria certain fuels must meet in order to be classified as “#renewable,” including hydrogen/ammonia, which would apply to both imported and EU-produced fuels.”
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12. Pressure on for fund managers to move to sustainable #ESG models
“The world’s largest asset management companies have come out swinging on #sustainable investing, declaring their intention to use their proxy-voting power to press for everything from boardroom diversity to net-zero #carbon emissions.”
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13. COP 28 Primer: Hard-to-abate industries expect #decarbonization budgets to rise over next 3 years
“Seven out of 10 executives from “hard-to-abate” industries expect an increase in decarbonization budgets over the next two to three years, a joint report by UAE-based Masdar and FT Longitude, said.” ( Shaban Hadia , Senior News Editor)
14.?IT #Sustainability Think Tank: What IT leaders need to know about greenwashing
“Consequences for CIOs
So what does this all mean for CIOs and other technology leaders??First, it means the rubber is meeting the road. Not having a strategy that looks at the entire lifecycle of a device – from procurement to information technology asset disposal (#ITAD) – is simply no longer an option.
And with unregulated and unregistered asset disposal comes the issue of data security. Big names have?suffered damaging incidents related to their failure to properly retire old?assets containing sensitive data. These practices also risk organizations being targeted by ransomware or other security breaches that can leave their reputation in tatters and open them up to potential – and significant – regulatory sanctions.
It is evident that without complete transparency and proper supplier assessment when it comes to #ITAD, companies risk thinking they are being compliant, responsible, and “green”, when the reality is very different. They are simply outsourcing responsibilities without sufficient due diligence and understanding of the considerable risks involved.
To make #ITAD a strategic business practice – in the absence of a full technology lifecycle management plan – organizations should only consider providers that guarantee a strict chain of custody, complete audit trail for every device, digital tracking of IT assets, secure data destruction, and environmentally responsible repair and refurbishment.”??
15. United Airlines , five other companies launch effort to develop sustainable aviation fuel
“ United Airlines ?and five corporate partners are launching a venture capital fund to invest in startup firms and technology developing and expanding the availability of #sustainable aviation fuel, commonly referred to as SAF.?
The United Airlines Ventures Sustainable Flight Fund will start with $100 million invested by United Airlines,?Air Canada,?Boeing,?GE?Aerospace,?JPMorgan Chase?and?Honeywell.
The announcement comes as the aviation industry pushes to cut greenhouse gas emissions in order to meet more restrictive pollution standards.”
16. Why are non-scientists leading the world’s largest companies’ #sustainability efforts?
Some 23% of Fortune 500 corporations claim to engage with the #Sustainable Development Goals framework. Yet, a peer-reviewed study found that?a measly 0.2%?have developed concrete methods and tools to evaluate their progress toward relevant SDGs.
Only 29% of almost 1,200 Fortune 100 board directors had relevant #ESG credentials, according to?a 2021 study?from researchers at the NYU Stern Center for #Sustainable Business. Even then, these credentials are largely concentrated on the social pillar, neglecting environmental expertise.
Meanwhile, over?half?of the 250 largest companies on the #Fortune Global 500 don’t even have leadership-level representation for #sustainability, and an alarming two-thirds of?NASDAQ?100 companies don’t have a dedicated member of their board or leadership team responsible for sustainability matters.
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17. Oka, The Carbon Insurance Company?, Announces Over $7M in Seed Funding for #Carbon Credit Insurance Platform
PARK CITY, Utah,?Feb. 23, 2023?/PRNewswire/ --?Oka, The Carbon Insurance Company?,?has announced its seed round, attracting over?$7M?in funding. The round was led by?Aquiline Technology Growth,?a prominent investor in early?and growth-stage companies that are bringing innovation to financial services, who will help fuel?Oka's vision to ensure all #carbon credits are insured.
The voluntary #carbon market (VCM) is experiencing significant growth and is projected to reach?$1 trillion?by 2037, highlighting the scale of the opportunity. Oka, The Carbon Insurance Company, is currently focused on providing insurance that will replace credits if destroyed or invalid, providing security and confidence to the VCM market. The investment will be used to scale Oka's innovative #carbon credit insurance offerings, addressing the risks that large U.S. corporations face when buying carbon credits to offset their #emissions and meet #netzero targets.
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18. Nearly All Large Global Companies Disclose #ESG Information
For the third year in a row, more big global companies disclosed #environmental, social and governance (#ESG) matters than in previous years, with 95 percent having done so in 2021, the latest year available. The percentages were 92 in 2020 and 91 in 2019.
This is according to a?third report?about #ESG disclosures and assurance practices around the world by the International Federation of Accountants ( IFAC ) and the Association of International Certified Professional Accountants.
The data is based on the largest companies in each jurisdiction by market capitalization for fiscal years 2019 and 2020, and March 21, 2022, for fiscal year 2021.
19. Comment: Natural capital isn’t a hot new #ESG topic. It’s intrinsically linked to climate
March 1 - It is extraordinary how quickly the theme of natural capital has emerged, defined as making sense of the economic value of the world’s resources and the financial impact of preserving or depleting them. While COP15 raised awareness of the importance of biodiversity at the end of last year, at UBS we don’t see it as a “hot” new topic, though, but one that should be intrinsically linked to climate.
20. State aid: Commission approves €460 million Spanish measure to support ArcelorMittal #decarbonize its steel production
The European Commission has approved, under EU State aid rules, a €460 million Spanish measure to support?ArcelorMittal Espa?a?(‘ArcelorMittal') in partially #decarbonizing its steel production processes. The measure will contribute to the achievement of the?EU Hydrogen Strategy?and the?European Green Deal?targets, while helping to reduce dependence on Russian fossil fuels and fast forward the green transition in line with the?REPowerEU Plan.
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