Signals of Change April 2024

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Here are this month’s signals of change towards...?

First up, in responsible policy engagement news, Unilever has threatened to leave trade associations not aligned with the Paris Agreement goals, finding eight associations misaligned with its policy positions. Unilever is advocating for climate policy changes including carbon pricing, nature protection and renewable energy support as part of its new Climate Transition Action Plan.? ?

A just transition from fossil fuels to clean solutions?

Energy?

To utilities and a new partnership between EDP and battery start-up Rondo Energy. The pair plan to reduce industrial heat costs in Europe through a new ‘heat battery’, aiding the manufacturing sector during the energy crisis and slashing emissions by up to 80%.?

Staying in Europe Raylyst Solar, a Prague-based solar panel distributor, leads the FT 1000 ranking of Europe's fastest-growing companies , reflecting a surge in demand for renewable energy amid governmental efforts to diversify energy supplies and meet climate goals.??

Next up, Microsoft, Google, and Nucor have announced a collaboration to advance and scale clean electricity technologies by developing new business models and combining demand to accelerate the development of projects like next-generation geothermal, clean hydrogen, and long-duration energy storage.?

Meanwhile, Australia's largest aluminium smelter, Tomago, is set to launch a significant tender for wind and solar projects as its majority owner, Rio Tinto, deems nuclear energy too slow and costly, marking a pivotal moment in the country's renewable energy transition.?

Transport??

Fossil to Clean signatory Volvo Cars saw its last ever diesel car roll off its production line in Toslanda, Sweden, on 26 March. The historic moment is seen as a ‘huge milestone in its 97-year history, making it the first ‘legacy’ automaker to ditch diesel for good.??

Ethiopia recently announced it is set to become the first country to ban the import of non-electric cars as part of efforts to promote cleaner vehicles and address foreign exchange limitations. The government says it is focusing on installing EV charging infrastructure and implementing electric car tax exemptions to support the transition.?

Meanwhile, the Biden Administration has announced new regulation to drive electric vehicle expansion . The rule limits tailpipe emissions over time so that, by 2032, more than half the new cars sold would need to be ZEVs to be compliant. The news comes as the EPA has finalized rules limiting auto tailpipe emissions from cars, SUVs and pickup trucks aimed at speeding up the EV transition.??

California leads electric freight news this month. In Los Angeles Country, Einride has opened the largest charging site for electric heavy-duty freight in North America , equipped with 65 chargers capable of charging up to 200 vehicles per day. Meanwhile at the Port of San Diego, the nation’s first all-electric tugboat has docked and will begin operations from mid-April.?

Latest from We Mean Business Coalition??

New research from We Mean Business Coalition, ICE and Bain & Company shows a huge opportunity for companies to scale new and additional investments in the voluntary carbon markets.??

The US FOREST Act is a rare legislative opportunity to advance environmental goals with bipartisan support. Writing in Forbes , our CEO María Mendiluce examines the bill in detail and looks at the role for business in combatting deforestation.??

Swedish heavy vehicle manufacturer Scania has already laid the foundations for a large-scale roll-out of electrified transport solutions. We outline Scania’s road to supply chain decarbonization in our latest case study .??

Two flagship energy sector conferences – CERAWeek in Houston and the Berlin Energy Transition Dialogue – offered a snapshot of how the outcomes of COP28 are being embedded in the narratives of policymakers and major industry players. We analyze some of the key themes that emerged , from oil and gas pushback, to mainstreaming renewables to electricity demand growth, and what these mean for going fossil to clean.?

Industry?

? Danish clean energy group ?rsted has secured first access to lower-emission heavy plate steel from Dillinger for use in offshore wind foundations, aiming to accelerate the decarbonization of the steel industry. The company has received support from the German Federal government to transform their production facilities for carbon-reduced steel.??

The U.S. Department of Energy has announced $6 billion in funding for 33 projects aimed at decarbonizing heavy industrial sectors , including six projects targeting the carbon impact of cement production through various methods such as converting calcium-bearing silicate rocks into Portland cement and using electricity instead of fossil fuels in cement kilns.?

Lastly, SSAB's decision to replace their coal-powered steel mill in Lule? with a fossil-free mini-mill will result in a whopping 7% reduction in Sweden's CO2e emissions . By investing in new technologies, SSAB is both avoiding investments otherwise needed for the existing coal-based plant and equipment costs worth €2 billion over the next 10 years. ? ? Built environment?

An international alliance comprising green building organizations from the UK, U.S., and Australia aims to provide practical guidance on financing low-carbon, energy-efficient real estate projects, focussing on certification schemes such as BREEAM, LEED, and Green Star.??

Meanwhile, the UK Green Building Council has published new guidance on measuring and reporting embodied carbon emissions from buildings . The guidelines aim to integrate project-based emissions disclosure into Scope 3 reporting to enhance accountability and transparency, particularly for architects and engineers.?

On energy efficiency, companies participating in our coalition partner Climate Group's EP100 program have achieved a remarkable 6% year-on-year improvement in energy productivity , significantly outpacing the global economy's progress.??

Lastly, building materials and design giant Kingspan has announced a 65% reduction in its Scope 1 and 2 greenhouse gas (GHG) emissions since 2020 as part of its 10-year sustainability programme, ‘Planet Passionate’, with a 40% absolute reduction in emissions in 2023 alone.??

Finance?

First up, despite a decline in issuance in the latter half of 2022, green bonds have experienced a significant resurgence in the first quarter of 2023, with quarterly issuance reaching an all-time high, driven by both supply and demand factors - and offering reassurance to investors.?

Danske Bank has introduced stricter requirements for fossil fuel companies , implementing a new Paris Agreement-aligned policy which aims to gradually phase out investments in fossil fuels and assess companies based on their transition plans and alignment with net-zero goals.?

Meanwhile, The British Standards Institution has launched the first edition of UK nature investment standards to provide a standardized approach for nature investments, aiming to boost confidence in nature markets and to develop a common set of principles and definitions for nature investments.?

After some delays, the European Council has approved the Corporate Sustainability Due Diligence Directive (CSDDD) , establishing legal liability for companies regarding environmental and human rights violations within their supply chain. The bill will now proceed to the European Parliament for approval, amid concerns that it has been significantly watered down compared to the initial proposal.??

Protecting and restoring nature ?

Firstly, a new report from We Mean Business Coalition, the World Business Council for Sustainable Development, and the Food and Land Use Coalition has found that investing just 2% of the food and agriculture sector’s revenues , around $205 billion annually between 2025 and 2030, could potentially eliminate half of the industry’s emissions.?

Next up, a new scientific study published in Nature Climate Change has assessed over 40 nature-based solutions, identifying the most robust approaches, and underscoring the need for transparent and trustworthy implementation to rebuild trust in carbon markets.?

Meanwhile, Nestlé’s Nepresso has pledged $20 million for coffee purchases and sector development in the Democratic Republic of Congo , to support coffee farmers, sustainable practices, and community resilience.??

Lloyds Banking Group has partnered with Projects for Nature, donating ￡250,000 to support three nature restoration projects in England focused on flood management, wildlife corridors, regenerative agriculture, and local community involvement, aiming to combat nature loss and promote a more resilient and thriving natural environment.? ?

In another boon for nature funding, the U.S. Department of Agriculture is investing nearly $145 million to connect forest landowners with emerging climate markets , aiming to address climate change while supporting rural economies and maintaining land ownership for future generations. Meanwhile, the UK Government is increasing subsidy funding for tree planting on farmers' land in England by 45% , to incentivize farmers to contribute to national nature targets and address climate change.? ?

Decarbonizing global supply chains?

Unilever has unveiled its new Climate Transition Action Plan (CTAP) , which includes new value chain emissions targets. The company is targeting a 39% absolute reduction in total targeted Scope 3 emissions by 2030 through initiatives such as reformulating products and supporting regenerative agricultural practices.??

UK fashion firm New Look has joined a series of initiatives from Innovate UK’s Digital Catapult aimed at slashing carbon emissions and accelerating hydrogen adoption throughout the UK textile industry supply chain. In one effort, New Look will support a project with Looper, a Swedish textile reuse and recycling firm, to help better understand the lifecycle of the retailer's garments.?

German footwear and apparel multinational Puma has announced a significant reduction in supply chain emissions , including a 29% absolute reduction compared to 2017, driven by initiatives such as doubling the use of renewable energy by core suppliers and implementing reduced-carbon shipment tariffs with Maersk.? ?

Companies taking action?

Over 15,000 companies are taking action through Coalition partner initiatives. See all companies who committed in the past month on the We Mean Business Coalition website. ?

Please note: SBTi recently removed some companies from their list of commitments, which is also reflected in the company listing on the We Mean Business Coalition website. Find out more here. ??

? Companies setting their ambition for net zero include:?

• 7,635 companies working to cut their emissions in line with science through SBTi? ?
• 7,662 small and medium-sized enterprises working to cut emissions with the SME Climate Hub? ?
• 475 companies who have now signed the Climate Pledge, to reach net zero by 2040 ? ?

Meanwhile, companies are driving down emissions through the following demand-side initiatives:?

• 130 companies are accelerating the transition to electric vehicles with EV100, and 5 companies are kickstarting the transition to zero-emission medium- and heavy-duty vehicles with EV100+.? ?
• 128 companies are committed to improving their energy efficiency through EP100. ? ?
• 428 companies have committed to 100% renewable energy with RE100 ? ?
• 38 companies have joined ConcreteZero to create a market for net zero concrete? ?
• 45 companies have committed to SteelZero to create a market for net zero steel?

Events?

VCMI Carbon Integrity 101: Webinar Series 17 April , 2 May, 16 May, 29 May ? ? 24hr NCS Summit 14 May??

US Climate Action Summit 2024 22 - 28 April?

Bonn Climate Change Conference – 3-13 June???

G7 Summit – 13-15 June????

Climate Week NYC – 19-25 September?

?Jobs?

Various posts at BSR ?

Various posts at CDP ?

Various posts at Ceres ?

Various posts at CLG Europe (CISL) ?

Various posts at Climate Group ?

Various posts at WBCSD ?

Various posts at SBTi?

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