Global Climate Action Accelerates: SBTi Updates, EU Progress, and Investor Pressure

Greetings, Climate Champions and Sustainability Trailblazers! ??

Welcome to our pulse-pounding newsletter on global climate action and ESG breakthroughs! In this edition, we're diving into game-changing developments that are reshaping our path to a sustainable future. From SBTi's cutting-edge updates to the EU's green triumph and the financial world's clarion call for climate action, we're covering it all. Buckle up as we explore how these pivotal shifts are propelling us towards a cleaner, greener, and more prosperous world. Let's ride the wave of change together!

SBTi Revamps Corporate Net-Zero Standard: What You Need to Know

The Science Based Targets initiative (SBTi) is shaking things up in the corporate sustainability world. They're giving their Corporate Net-Zero Standard a makeover, and here's the scoop:

1. Emission Neutralization Gets a Facelift: SBTi is fine-tuning how companies can offset those pesky residual emissions. Think cutting-edge carbon removal tech and storage solutions.
2. Expert Powwows: Two big workshops are in the pipeline - one during Climate Week NYC and another in London. These brainstorming sessions will shape the future of carbon dioxide removal in corporate net-zero strategies.
3. Science Takes Center Stage: The revised Standard will be a science geek's dream, aligning with the latest IPCC findings and global climate initiatives.
4. Scope 3 Gets Some Love: SBTi is diving deep into those tricky indirect emissions from supply chains. Expect more nuanced approaches for comprehensive decarbonization.
5. Keep It Fresh: Companies will need to regularly review and update their targets. No more set-it-and-forget-it approaches!

The revised Standard is set to hit the streets in Q4 2025, following a public consultation period. This update could be a game-changer for how businesses approach their net-zero journeys, balancing ambition with practicality in the fight against climate change.

EU Reports Significant Progress in Energy Transition and Emissions Reduction

The European Union has released its 2024 State of the Energy Union report, highlighting substantial achievements in energy security, sustainability, and economic growth. Key points:

1. Emissions Reduction: EU greenhouse gas emissions have decreased by 32.5% since 1990, while the economy grew by 67%.
2. Renewable Energy Growth: 50% of EU electricity came from renewable sources in early 2024, setting new capacity records.
3. Energy Security: Russian gas imports dropped from 45% in 2021 to 18% by June 2024, with increased imports from Norway and the US.
4. Economic Resilience: The EU achieved its 90% winter gas storage target ahead of schedule, demonstrating improved energy market control.
5. Challenges Ahead: Further efforts are needed to meet the 11.7% energy consumption reduction target by 2030 and close gaps in renewable energy goals.
6. Global Leadership: The EU is leading international efforts to triple renewable energy capacity and double energy efficiency improvements.
7. Industrial Innovation: New initiatives like the Net-Zero Industry Act aim to boost EU competitiveness in clean technologies.

The report emphasizes the need for continued coordination at EU and Member State levels to meet 2030 climate goals. The outcomes of these efforts may significantly influence global energy transition strategies and climate policies.

Global Investors Push for Stronger Climate Policies Ahead of COP29

A powerful coalition of financial institutions is ramping up pressure on governments to take decisive action on climate change. Key points:

1. Investor Coalition: Over 530 financial institutions, managing $29 trillion in assets, have united to demand stronger climate policies.
2. Policy Demands: The group is calling for mandatory climate reporting, sector-specific decarbonization strategies, and increased focus on biodiversity challenges.
3. Developing Economies: Investors emphasize the need for boosting private climate investment in emerging markets.
4. Timing: The statement comes ahead of COP29 in Baku, urging governments to make clear commitments.
5. Current Shortfall: Despite progress, global clean energy investment of $1.8 trillion in 2023 falls short of the $4.8 trillion annually needed for net-zero by 2050.
6. Whole-Government Approach: The coalition stresses the need for comprehensive policies to unlock public and private capital for the net-zero transition.

The 2024 Global Investor Statement is described as the "most ambitious yet" by industry leaders. The outcome of these demands could significantly impact global climate policy and investment trends, particularly in emerging markets. Investors have until November 1, 2024, to sign the statement.

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This session will provide key insights into GRI standards, offering practical advice on transparent and effective sustainability disclosures. Whether you're new to the topic or experienced, our experts will answer your questions and share best practices for aligning with global frameworks.

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