In The Headlines - June 2024

1.

Number of companies with science-based targets doubled in 2023?

The Science Based Targets initiative has released the?SBTi Monitoring Report 2023, which records a 102% increase in companies setting science-based targets in 2023.??

According to the report, there was an 83% increase in the number of financial institutions and a 57% increase in corporates setting science-based targets in 2023 compared to 2022. ??

A record?449 corporates set targets in line with the SBTi’s Net-Zero Standard, which requires emissions to be reduced by at least 90% by 2050 at the latest. This represents a 245% increase on 2022 figures.??

Manufacturing and services accounted for 58% of target-setting companies in 2023 while pharma and healthcare recorded a 222% increase in the number of companies with validated targets, the highest growth recorded by a sector.??

The top three countries with the highest number of validated companies are Japan (768),?the UK (693), and the US (465). The highest growth was recorded in India, bringing the total number of companies setting science-based targets in India to 93.?

This report comes as Dr. Luiz Amaral has announced his resignation as CEO of the?Science-Based Targets?initiative, effective at the end of July 2024, amid scope 3 emissions controversy.

There has been backlash over proposed changes to the use of carbon credits for Scope 3 emissions.? At present, companies wishing to align with the SBTi’s Net-Zero Standard can only use offsets to address 10% of their absolute emissions across all scopes. SBTi is expected to relax guidelines on the use of carbon offsets.?

2.

Dwindling global sustainable investment funds spark fears of greenwashing?

The World Investment Report 2024?released by UN Trade and Development (UNCTAD) on 20 June has revealed a significant slowdown in sustainable investment funds, with inflows dropping by a staggering 60%. This decline raises concerns about the integrity of sustainable investment practices and the potential for greenwashing, where misleading sustainability claims may distort investment decisions and erode trust in sustainable finance mechanisms.?

The report indicates that the average net exposure of green funds to climate-positive assets (low-carbon assets minus fossil fuels) is only about 20 per cent, and fewer than 5 percent of these funds are free from oil and gas assets.?

With the escalating concerns over greenwashing and the dwindling support for sustainable investments, the report calls for immediate policy interventions to mitigate risks and restore confidence in sustainable investment strategies.?

The report has also highlighted a troubling 10% reduction in new funding for SDG sectors, with sgrifood systems and water and sanitation projects recording fewer internationally financed initiatives in 2023 compared to 2015 when the SDGs were adopted.?

The report sheds light on the tight financing conditions that prevailed in 2023, resulting in a staggering 26 percent downturn in international project finance,?a critical source of funding for infrastructure investments. Accordingly, investment in sectors linked to the SDGs experienced a decline.?

As demonstrated in the report, the decline in financial support poses significant challenges to the attainment of SDGs, underscoring the urgent need for policy actions to reinvigorate sustainable finance to narrow gaps for global goals.?

3.

Saudi Arabia to showcase sustainable development commitment at UN high-level political forum?

Saudi Arabia is at the UN High-Level Political Forum (HLPF) 2024 taking place from July 8-18 in New York, reaffirming its commitment to global sustainable development.?The annual forum convenes countries to review global efforts and progress towards achieving the Sustainable Development Goals (SDGs). ??

The Saudi delegation, led by Minister of Economy and Planning Faisal Al-Ibrahim, includes representatives from 13 government entities. ?Saudi Arabia will present this year's Voluntary Local Review Report, analysing progress towards sustainable development goals at the local level in the Riyadh region.??

The Kingdom's participation underscores its integration of Saudi Vision 2030 principles with global sustainable development goals. Previously, Saudi Arabia presented voluntary national reviews at the High-Level Political Forum in 2018 and 2023, highlighting substantial progress across various sustainable development areas.??

HLPF 2024, themed 'Reinforcing the 2030 Agenda and eradicating poverty in times of multiple crises: the effective delivery of sustainable, resilient, and innovative solutions,' will conduct in-depth reviews on several SDGs: SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 13 (Climate Action), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals).??

Since 2017, Saudi Arabia has participated annually in the forum, which is convened under the auspices of the United Nations Economic and Social Council to promote sustainable development globally.?

4.

BRICS and BRICS+ outpace rest of the world on SDGs achievement, as Nordics rank first ?

Only 16% of SDG targets on track to be met by 2030, report finds?

Since 2015, average SDG progress in the BRICS (Brazil, the Russian Federation, India, China, and South Africa) and BRICS+ countries (Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) has outpaced the world average, the?annual assessment?of the performance on the SDGs has stated. ?

Released?by the UN Sustainable Development Solutions Network (SDSN), the?report states that the pace of SDG progress varies significantly across country groups, with Nordic countries continuing to lead on SDG achievement,?while poor and vulnerable nations lag far behind. Finland is ranked first, followed by Sweden, Denmark, Germany, and France. Yet even these countries face significant challenges in meeting several SDGs.?Meanwhile, East and South Asia has emerged as the region that has made the greatest progress toward the SDGs. ??

The annual assessment?of the performance on the SDGs has found?that global progress on the United Nations Sustainable Development Goals (SDGs) has been stagnant since 2020, with only 16% of the targets currently on track to be met by 2030.

At the global level, SDG 2 (Zero Hunger), SDG 11 (Sustainable Cities and Communities), SDG 14 (Life Below Water), SDG 15 (Life on Land) and SDG 16 (Peace, Justice and Strong Institutions) are particularly off track. The five SDG targets on which the highest proportion of countries show a reversal of progress since 2015 are: obesity rate (under SDG 2), press freedom (under SDG 16), the Red List Index (under SDG 15), sustainable nitrogen management (under SDG 2), and – due in large part to the COVID-19 pandemic, along with other factors that vary across countries – life expectancy at birth (under SDG 3). Goals and targets related to basic access to infrastructure and services, including SDG 9 (Industry, Innovation and Infrastructure), show slightly more positive trends, although progress remains too slow and uneven across countries.?

FROM SS DESK

SS NEWS

1.

Sustainable Square 's exclusive offers for MEIRA members

?? Exciting news! ??

?? Sustainable Square is a service provider partner for Middle East Investor Relations Association, offering exclusive benefits to MEIRA’s corporate members!

? Enjoy a 30% discount on SQUARELY, our AI-Powered SaaS platform, for the first year.

? Get a complimentary 1-hour ESG awareness building virtual workshop for your board & leadership team upon request.

? Get a 20% discount on ESG investor presentations and ESG framework development services.

? Receive a 20% discount on annual ESG reports produced in accordance with international frameworks.

? Enjoy a 20% discount on ESG IPO preparation services, including developing ESG prospectuses.With these exclusive offers, your company can tap into Sustainable Square’s decade-long expertise in #ESG, #sustainability, #responsibleinvestment, #climatechange, and #socialimpact.

Don't miss out on this opportunity to enhance your ESG efforts! To get a detailed breakdown of the exclusive?offers, please visit our website.

2.

SS CEO speaks at Impact Now in Tunis

Monaem Ben Lellahom held a fireside chat at Impact Now in Tunis, where he discussed the role of Environmental, Social, and Governance (ESG) practices in accelerating corporate impact. The Impact Now conference was part of the social business network Impact Partner's 10th year anniversary celebrations. It was organised by BIGTECH.

The event gathered business ecosystem leaders, investors, and social innovators to explore impact investing and corporate engagement.

3.

SS invites GCC sustainability professionals to participate in regional ESG study

Sustainable Square invites all sustainability professionals and business leaders to participate in this groundbreaking ESG survey in the GCC region!

Following the success, acceptance, and widespread adoption of our "2022 State of ESG in the GCC" report at COP28, we are excited to continue our efforts with the 2023 State of ESG in the GCC survey.

?? We invite you to take part in the survey below, which will take less than 15 minutes. ?? Your responses will provide valuable insights into the current state of the market and help advance the conversation on sustainability.

?? Rest assured, all company information will remain confidential. Data received will be aggregated to uncover overarching trends.

?? Take the survey here: https://lnkd.in/dJNThBHn

For any queries, write to us at ?? [email protected]

4.

SS on London Stock Exchange Group panel on ESG

Our Senior Responsible Finance and Sustainability Advisor Rach ElGolli recently sat on a panel organised by the National Bank of Fujairah and the LSEG (London Stock Exchange Group). Discussing the topic ‘Accelerating ESG: Turning Plans Into Results’, the panel explored how organisations can align their ESG strategy with their corporate and business objectives, thus going beyond compliance to make ESG the driving force of the business' growth and impact.Also on the panel were Gouban Gopalakrishnan, Business Consulting Director and Sustainability Expert – Grant Thornton - UAE and Jessica Robinson, Sustainable Finance Expert?– Solve Strategies. The panel was moderated by Luma Saqqaf, Director – Principles for Responsible Investment.

5.

SS conducts ENOC ESG workshop

Sustainable Square has conducted an Impact Measurement Workshop to train employees of ENOC on the social return on investment SROI methodology. The workshop was conducted by Head of Strategy Sameera Sabharwal and CEO Monaem Ben Lellahom. Also in attendance were Regional Business Development Manager Abir Saidi and Senior Social Impact Advisor Jalila Hedhli.

Key topics covered were:

?Why measure the impact of CSR Programs?

? Identify key stakeholders and outline inputs & outputs

? Determine how activities achieve outcomes for the target audience

?Evaluate, document, and monetise outcomes

? Assess overall program impact

? Calculate the SROI and compile a comprehensive report

6.

SS advisor speaks at MEIRA Dubai chapter meeting

Our Senior Sustainable Finance and ESG Advisor Rach ElGolli was a speaker at the Dubai Chapter meeting of Middle East Investor Relations Association on Monday, June 3rd. ??Rach's presentation was titled "Sustainability: It's About More Than Reporting Just Numbers," delving into how businesses can prioritise corporate sustainability and disclosure.?

She was among other industry experts who spoke, including Du CFO Kais Ben Hamida who highlighted the importance of good investor relations for publicly listed companies, Faisal Kanth, Managing Partner at Fairvue Partners, who spoke on "Managing the quarterly earnings cycle," and Sophie Schmitt,?Director Continental Europe, Middle East & Africa at Notified?who tackled "Artificial Intelligence and Investor Relations,".

SS INSIGHTS

1.

Collaboration is Key: How Holding Companies and Conglomerates Can Foster Engagement with ESG Reporting Technology

Our Senior Responsible Investment & Sustainability Advisor Svenja Weber explores how leveraging ESG technology can enhance collaboration and streamline sustainability efforts across large organisations.

Svenja looks at the benefits of collaboration such as:

?? Pooling of Resources: To maximise expertise and optimise sustainability initiatives.

?? Enhanced Innovation: Unites diverse perspectives to create "out of the box" solutions.

?? Sense of Ownership: Employee engagement boosts commitment through collaborative projects.

Explore the following benefits of ESG technology for large companies:

??Predictive Analytics

??Accurate Data Analysis

??Efficient ESG Reporting

??Seamless Integration with Financial Data

Understand how ESG technology like SQUARELY can address challenges and empower your organisation to drive impactful change.

2.

How ESG Technology Can Prevent Greenwashing

In this article, our Growth Manager Enas Mohamed explains how technology is the key to fighting greenwashing in ESG reporting and looks at how organisations?are using ESG tech to engender trust through authentic reporting. With rising demands for transparency, ESG tech like AI and blockchain can ensure accurate, real-time monitoring and data standardisation. ?? For example, SQUARELY, our ESG software, automates data collection and reporting, helping companies avoid false sustainability claims.

?? To find out more about SQUARELY, write to us at [email protected]

3.

How ESG Technology Can Prevent Greenwashing

In this article featured in the MENA Tech 2024 report by BLJ Worldwide, Monaem Ben Lellahom highlights technology as the key to fast, accurate, and robust ESG reporting and demonstrates how ESG tech can help eliminate greenwashing. He gives the example of SQUARELY, Sustainable Square's new ESG report-generating software.

4.

Our Land, Our Future: A Middle Eastern Perspective on World Environment Day 2024

On World Environment Day (WED) 2024 celebrated under the slogan ‘Our Land. Our Future. We are Generation Restoration’, our Senior Climate Change and Sustainability Advisor Dinah Gengmei looked at?the innovative policies and initiatives that are setting the pace in sustainable land management in several countries in the Middle East. ?

Having this annual global event hosted in the Kingdom of Saudi Arabia shines a spotlight on the urgent need for concerted efforts towards land restoration, desertification prevention, and drought resilience. ?? ?? The Middle East is particularly vulnerable to desertification and drought, with arid and semi-arid landscapes that are susceptible to soil degradation, which exacerbates food and water scarcity issues. As climate change intensifies, both the environment and livelihoods are put at risk. The region can help shape a future where our land and ecosystems are preserved for generations to come.? ?

5.

SS CEO Interviewed by Tunisian business magazine, Managers

In this article published in the leading Tunisian French business magazine, Managers, our CEO Monaem Ben Lellahom covers why decarbonisation is key for Tunisian exports and for access to international markets in regions such as Europe. He highlights opportunities that exist in accessing global sustainable finance funds, and the realities of climate change in Tunisia.

Thank you for reading The ESG Bulletin. See you soon, with the next edition of our monthly newsletter tackling the latest in global sustainability. If you would like to get in touch with our expert consultants to find out what Sustainable Square can do for your organisation's sustainability goals, reporting and disclosure please write to?us at [email protected].