The Inference of Compatibility

Welcome back,

Having taken a short break and coming into the sustainability landscape from a different angle, publishing a look back at the recent goings-on from a more rounded perspective will endeavour to be the shifted focus here.

Environmental

Microsoft to Capture and Store Carbon in Recycled Concrete with Startup Neustark

The software giant has reportedly paid to have over 25,000 tons of Carbon Dioxide removed from the atmosphere and stored in waste concrete via Switzerland-based Neustark.

The CO2 will be captured at source over the next 6 years and stored in mineral waste, such as concrete.

This deal is one of its latest, coming from its pledge to be carbon-negative by the turn of the decade. Previously, the company has bought carbon credits using a range of carbon removal techniques, most recently 362,000 tons provided by reforestation efforts across the US.

Neustark is a relatively young firm founded in 2019 and reached an agreement in 2022 with Microsoft - a buying arrangement to 'help the company scale.'

Capturing CO2 from biogas plants, liquifying it, then transporting it to construction waste recycling sites where it is injected into demolition concrete and permanently bound to the material surface.

Microsoft Carbon Removal - Neustark

Governance

Olam surges after probe finds no evidence of Nigeria Unit Fraud

The commodity trading group officially stated that its investigation found no evidence supporting the alleged scandal surrounding its Nigerian units, resulting in the biggest surge in Singapore-listed shares in over 10 years.

With the assistance of external counsel and independent accountants, its internal audit and risk committee has completed the review without identifying any evidence.

Reports emanating from Nigeria claimed that branches were involved in a multibillion-dollar fraud - having denied these claims in September.

Corporate

Chinese EV giant BYD launches new plug-in hybrid sedan with lower starting price

In the ongoing price wars surrounding electric vehicles, the Chinese electric car manufacturer launched a new version of its plug-in hybrid sedan - going for approximately $11,000 (down almost 20% from the previous version). With a 'battery only' driving range of 55km.

BYD

Walmart 6 years ahead of target

The retail giant has announced it has achieved its goal to cut GHG emissions by 1 billion metric tons (yes, that is billions with a b) across its product supply chain.

6 years ahead of its initially proposed 2030 target, which it set in 2017, at an initiative to engage its suppliers, NGOs, and other stakeholders in climate actions.

Helping to facilitate this was an established supply chain finance program with HSBC and CDP, incentivising and assisting suppliers to set science-based emissions reduction targets and hit CDP environmental scores.

Mercedes-Benz Delays Electrification

The luxury automobile maker is the latest auto manufacturer to announce a delay in its electrification objective by five years, stating a re-aligned focus on refining its combustion engine line-up.

New company anticipations estimate that electrified vehicles, including hybrids, will represent up to 50% of total sales by 2030.

This additional sustainability pushed back reflects the mismatch between investment in EV technologies and the actual market demand - with company focuses shifting back towards the development and evolution of combustion engines.

Global EV Sales Slowing

Energy

Top lithium producer cuts 2030 demand forecast on slower EV adoption

Albemarle, the world's largest producer of the vital component in electric vehicles, has downgraded its 2030 demand forecast - by 10%.

The company's president of lithium attributed this to car markets delaying the launch of electric vehicle models in Western markets. Linking back towards delays in expanding production capacity by Tesla, Ford & General Motors.

This has been attributed to pushback from the general marketplace against electrified versions of pick-up trucks that would need larger batteries and use a more considerable amount of lithium.

Spot market prices of the commodity have collapsed 82% since the start of 2023, leading to large parts of the industry falling into loss-making.

Japanese Cardboard Maker Rengo Will Start Producing Raw Material For Sustainable Aviation Fuels (SAF), Using Construction Waste In 2027

The cardboard maker will invest approximately 20 billion Yen to install equipment to produce ethanol, which can then be used to produce ethanol and then processed for SAF.

Nikkei Asia

Opinion

As we filter through the miasma of political divisiveness affecting close to half the world's population, a shifting set of ideals with regards to the world's economic progress or regress and global tension alongside conflicts escalating - against the backdrop of all-time high stock markets in the US, EU and Japanese markets one would be forgiven for having a head-scratch moment.

Is inflation going to fall? With oil stable above $70, it's going to be a tricky sell and pull back from a nominal perspective, at least

Does that mean a prolonged period with higher rates? Most likely, with global conflicts impacting worldwide supply chains and solutions providing difficult-to-materialise

How does this impact sustainability? Funding, primarily from large-scale lenders, is costly at the moment. With rates being what they are, the cost of borrowing is still relatively high compared to the last 20 years or so

Differing geopolitical viewpoints continue to hamper the US and its progression towards a more sustainable future. The Inflation Reduction Act, being revolutionary in its style and size, still sits firmly ahead of any other commitments from any government worldwide. However, political pushback from the other side of the aisle still makes noise about refuting this and pulling back from sustainability commitments and broader international commitments alongside this.

Europe is grappling with the new CSRD regulation, the size and scale of gathering and auditing 1,178 data points revolving around ESG without a released format, and a significant amount that needs more guidance. Oh, and not to mention the small fact that its largest economy is in danger of falling into a recession, prompting severe growth concerns across the continent.

As ESG and Sustainability managers wait for their budgets for the year across the corporate and finance worlds, a tightening set of market conditions, scepticism globally, and an uncertain monetary scenario will, at least for Q1 & Q2 of 2024, make progress challenging to materialise.