May 2024 Sustainability Roundup

??Via this monthly newsletter, we'll share recent sustainability news on climate change and the business climate reality, including important updates and resources on disclosure laws and reporting standards. Be sure to also check out our linked roundup of noteworthy Tango news, educational resources, and blogs!

Energy Market Update

~Natural Gas Consumption Predicted to Tie Records Set in 2023~

The July ’24 natural gas contract is trading at $2.59/MMbtu. Inventories are 15.7% more than the same period last year and 26.5% more than the 5-year average. Surplus summer reserves are shrinking rapidly. NYISO has shed 61% of capacity above the reserve margin target in just two years, posing long-term scarcity concerns.

The EIA predicts that the natural gas consumed for electricity generation this summer in the U.S. will reach close to the record set last year. The EIA does not expect natural gas consumption for electricity generation to increase, even though there’s been a 3% increase in overall U.S. electricity generation this summer. It’s expected that natural gas consumed to generate electricity will average 44.7 Bcf/d in the U.S. during the peak summer months of June through August. This matches up with the record high set in the summer of 2023.

View graphs and more analysis here >>>

?? Sustainability??

?? Roundup of Blogs & Tango Updates

~Our first annual Sustainability Report, detailing 2023 performance, is now available. In this report, we announced our goal of becoming carbon neutral by 2030 , setting us apart as a pioneer in the larger ecosystem of real estate technology providers. The report details Tango’s environmental, social, and governance performance from 2023, plus our overall sustainability initiatives and aspirations.~

~Andy Anderson , Chief Sustainability Officer at Tango , was recently interviewed during DistribuTech, an industry trade show, providing a quick analysis of the importance of energy reporting through benchmarking and transparency. The rise of building performance standards, such as New York’s Local Law 97 , Boston’s Building Energy Reporting and Disclosure Ordinance (BERDO) , and Denver’s Energize Denver , underscores the urgency for detailed energy reporting. Anderson’s insights reveal the multifaceted benefits and strategies that utilities and businesses can adopt to enhance energy efficiency and sustainability.~

~Integrating Sustainability and Energy Management: Insights from WatchWire by Tango’s Second Annual INTEGRATE User Conference ~

Last month, we brought together industry leaders, innovators, and clients for INTEGRATE, our second annual User Conference. In this article, we'll recap the conversations, themes, and key takeaways from the day!

Notable Sustainability News

From May 2024 and beyond. Catch up on the latest updates in the ESG and sustainability space that you might have missed. Our roundup of topics and important announcements have you covered.

Articles on Corporate Sustainability, Regulation, & Global Events

• DOE Releases First Ever Federal Blueprint to Decarbonize America’s Buildings Sector.
• The Global Reporting Initiative (GRI) has set up a new publication series titled 'CSRD Essentials' to simplify reporting, ESG News.
• Expert taskforce convened to oversee UK’s adoption of ISSB standards , Edie.
• Growth in solar and wind pushed the world past 30% renewable electricity for the first time in 2023, according to a report by global energy think tank Ember.
• The Missing “T” in ESG : In a recent paper , Harvard Business Review argues that amidst the enthusiasm about ESG, a critical parameter has gone virtually unnoticed: corporate tax behavior.
• The Science Based Targets initiative is at the center of a fierce debate over carbon offsets that will have major implications for corporate climate action, Bloomberg.
• Janet Yellen warns companies not to rely on carbon credits to save the climate, Financial Times.
• Biden-Harris Administration Announces New Principles for High-Integrity Voluntary Carbon?Markets. The new principles aim to make carbon offsets quantifiable and ensure that they are not emissions reductions that would not have happened otherwise.
• Calif. governor’s May budget revision would fund corporate climate laws (this comes after previous concerns around the lack of funding to implement the new California climate laws (SB 253 and 261) in his January budget)
• Exclusive: Corporate climate watchdog document deems carbon offsets largely ineffective, Reuters.
• There are 3 fundamental problems with Scope 2 GHG accounting. Here’s how to fix them, Utility Dive.
• ANALYSIS: Attorneys Say SEC Climate Rule Won’t Remain Intact, Bloomberg Law.
• 80% of Companies See Sustainability as a Potential Revenue, Profitability Driver: Morgan Stanley Survey, ESG Today.
• IFRS Says Over Half of Global Economy Moving Towards Coverage by ISSB Sustainability Reporting Standards, ESG Today.
• GRI and IFRS Foundation collaboration to deliver full interoperability that enables seamless sustainability reporting, GRI.

Articles on Climate & Environment

• New study shows that 1°C increase in global temperature leads to a 12% decline in world gross domestic product (GDP). Each additional ton of carbon will cost the global economy $1,056. Under a business-as-usual scenario, climate change will cause global welfare losses of 31%. Guardian.
• Hundreds of the world’s leading climate scientists expect global temperatures to rise to at least 2.5C (4.5F) above preindustrial levels this century, blasting past internationally agreed targets, Guardian.
• Summer 2023 Was the Northern Hemisphere’s Hottest in 2,000 Years, Study Finds , New York Times.
• Direct air capture technology is making headway : The “world’s largest” plant designed to suck planet-heating pollution out of the atmosphere like a giant vacuum began operating in Iceland on Wednesday.

?? Sustainability Reporting?Regulations & Standards: The Updates

~Check out our handy infographic detailing the current updates to the Sustainability Reporting landscape and moves of consolidation amongst the standard-setting bodies~

SEC Climate Related Disclosures

• The SEC stayed its new climate rule in April, less than one month after its release, due to the multiple legal challenges that were filed.
• Majority of Lawyers Expect SEC’s Climate Disclosure Rule Will Not Survive Intact: Bloomberg Survey

California Climate Disclosure Rules:

• Calif. governor’s May budget revision would fund corporate climate laws (this comes after previous concerns around the lack of funding to implement the new California climate laws (SB 253 and 261) in his January budget)

European Commission: ESRS under the CSRD

• the Global Reporting Initiative (GRI), along with an MEP and CSRD rapporteur, produced this CSRD Essentials Guide .

ISSB The?International Sustainability Standards Board IFRS S1 & S2

• The IFRS released the inaugural general sustainability (IFRS S1) and climate (IFRS S2) reporting standards?in June 2023 .
• Following the release of the standards last year, IOSCO, the leading international policy forum and standards setter for securities regulators?called on regulators to incorporate the standards ?into their sustainability reporting regulatory frameworks.
• The IFRS Foundation reported that to date, more than 20 jurisdictions have decided to use the ISSB standards, or are taking steps to introduce the standards in their own frameworks, with the jurisdictions representing nearly 55% of global GDP, more than 40% of global market capitalization, and over half of global greenhouse gas emissions. (the US Securities and Exchange Commission (SEC) has not formally adopted IFRS/ISSB standards but has largely modeled them in its new climate disclosure rule)
• Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards

CDP

• Discover the latest insights and updates in the CDP Bulletin Linkedin Newsletter
• The CDP Portal is now open for corporate disclosers, ahead of the reporting window opening on June 4.

Insightful Reports

• Assessing climate transition risk: methodologies and roles for financial institutions, UNEP
• The Global Electricity Review provides the first comprehensive overview of the global power system in 2023 based on country-level data.
• The World Economic Forum's Global Risks Report explores some of the most severe risks we may face over the next decade, against a backdrop of rapid technological change, economic uncertainty, a warming planet and conflict. (published Jan 10, 2024)
• The UN’s global report card as part of the “The Global Stocktake ” assessed progress since the 2015 Paris Agreement.
• Investing in American Energy report by the US Department of Energy (DOE). Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions
• Struggling with the details of?ISSB?/?IFRS,?ESRS?/?CSRD?or just overall?ESG?or?sustainability?frameworks? Check out the detailed analysis, tips and guidelines from WBCSD – World Business Council for Sustainable Development.

More WatchWire by Tango Resources:

• In this white paper , we'll unravel the tangible and intangible returns on investment (ROI) that companies can achieve by leveraging EMS and sustainability reporting software like WatchWire by Tango.

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