Signals of Change June 2024

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

A just transition from fossil fuels to clean solutions

Energy?

In India, a new record has been set for monthly renewable energy installations . In March, the country added 7.1 GW of capacity, including over 6.2 GW of solar power, more than doubling the previous record from March 2022 and contributing to the highest-ever annual installed capacity of 18.5 GW.?

California has reached a record 10 gigawatts of installed battery capacity , enough to meet 20% of peak demand. This significantly enhances the state's ability to extend solar power usage into night time hours, reducing reliance on fossil fuels.??

Across the Pacific, Google has signed its first renewable energy purchase agreements in Japan , supporting the development of new solar projects that will add 60 MW of clean energy to the grid as part of its commitment to 24/7 carbon-free energy by 2030.?

Lastly to Brittany, France, where all 62 wind turbines of Iberdrola subsidiary Aile Marines’ offshore wind farm have started turning, providing a total capacity of 496 MW. The project has mobilized more than 1,700 jobs in France, including more than 500 jobs in Brittany.?

Transport??

First up, the UK and Ireland are getting their first green shipping corridor . The plans, announced by Peel Ports Group and NatPower Marine, will feature a commercial electric ship and a clean energy charging network across eight ports.? ?

Next to South Africa, where Daimler Trucks will introduce its first fully battery-electric range of trucks , including the Mercedes eActros and eCanter models.? The move is part of Daimler Global's goal for 100% CO2 neutral trucks and buses by 2050.?

Meanwhile Ikea Australia is partnering with Jet Charge to establish a nationwide electric vehicle charging network, investing $4.5 million to install infrastructure to charge to six vehicles at each of its stores and 28 vehicles at the warehouse. The move aims to facilitate the adoption of electric fleets and move closer to its goal of 100% zero-emissions truck deliveries in Australia.?

Finally, China's electric vehicle industry, spearheaded by companies like BYD, has significantly contributed to green job growth, with EV firms creating 80% of new employment since 2019.?

Latest from We Mean Business Coalition??

• To support value chain decarbonization, we've launched a new webpage for businesses showcasing tactics for reducing Scope 3 emissions. Featured tools include the newly-launched "Mobilize your SMEs " guidance page from the SME Climate Hub.? ?
• Through approaches including collaboration, fostering SME action and climate clauses for suppliers BT Group has cut value chain emissions 20% since 2017. Discover how they did it in our new case study .? ?
• Are G7 nations finally ready to act on fossil fuel subsidies? asks our CEO María Mendiluce in her regular piece for Forbes ahead of the recent G7 Finance ministers’ meeting. ? ?
• The US government’s announcement of a new set of principles to guide engagement with voluntary carbon markets is a positive step forward , writes Managing Director of Net Zero, Jenny Ahlen.

Industry?

First up, the European Council has approved the Net-Zero Industry Act , aimed at increasing Europe's production capacity for key decarbonization technologies to meet the EU's climate goals and reduce reliance on imported technologies.?

ArcelorMittal has begun constructing a €213 million electric arc furnace at its Gijon plant in northern Spain, expected to reduce CO2 emissions by over 35% and produce low-carbon steel from 2026, marking a significant step in the company's European decarbonization efforts.?

To green cement, as Heidelberg Materials has announced plans to increase the share of sustainable financial instruments to over 70% by 2025 to fund the company’s decarbonization plans.??

Lastly, the European Commission has approved €1.4 billion in state subsidies for hydrogen projects involving 11 companies including Airbus, BMW, and Michelin to develop low-carbon hydrogen technology for transportation. The Hy2Move project, was prepared by Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain, who requested an exemption from single market rules that normally prohibit national subsidies. ?

Built environment? ?

In the U.S., the EPA has released a list of cities with the most buildings that meet its Energy Star certification for energy efficiency. Los Angeles topped the list followed by Washington, D.C., while New York City rose to third place thanks to its energy policies and mandatory use of energy tracking tools.? ? Meanwhile, Capgemini and Schneider Electric have launched the Energy Command Center to help organizations optimize energy use and decarbonize operations using AI, machine learning, and IoT. A pilot across Capgemini's India operations has already cut energy consumption by 29% since 2022 compared to a 2019 baseline.?

Lastly, following a global Summit in Paris this month, the African Development Bank (AfDB) has committed to investing $2 billion over the next decade to improve access to clean cooking in Africa, addressing significant health, environmental, and economic challenges.?

Finance?

First up, the IFRS Foundation reports that more than 50% of the global economy , covering 20 jurisdictions and representing nearly 55% of global GDP, are adopting or aligning with ISSB disclosure standards. This marks a significant step toward global consistency in corporate sustainability reporting, helping investors to assess companies’ sustainability risks and opportunities.?

Meanwhile, France has implemented penalties , including potential jail time, for corporate directors who fail to comply with the new Corporate Sustainability Reporting Directive (CSRD), marking the first EU member state to do so.? ?

And the European Securities and Markets Authority is advocating for adjustments in proposed sustainability reporting requirements for SMEs listed in EU markets, emphasizing the need for reporting on positive sustainability impacts and opportunities to mitigate risks.?

Lastly, the European Council has adopted the Corporate Sustainability Due Diligence Directive , requiring large companies to establish risk-based systems to monitor and mitigate environmental and social impacts, following a lengthy legislative process initiated by the European Commission in February 2022.?

Protecting and restoring nature ?

First up, the Biden administration has introduced federal guidelines aiming to ensure the credibility of carbon offsets, highlighting the importance of genuine emissions reductions and urging businesses to prioritize internal emission reductions before resorting to offsetting.?

Next up, Tetra Pak has launched a new nature strategy , aligning with UN biodiversity targets and focusing on halting biodiversity loss, enhancing water security, and implementing specific goals like sourcing raw materials sustainably and reducing water usage.?

Five leading companies, including Engie, GSK and Kering, have had their nature strategies approved by Business for Nature as part of their It’s Now for Nature” campaign. Strategies are being reviewed on an ongoing basis in the run up to COP16, and Business for Nature CEO Eva Zabey expressed hope that more companies will get involved in the lead up to the Summit.??

Lastly, financed by German development finance institute DEG/KfW, Sunfarming is building South Africa's largest agri-solar plant , covering 30,000 m2, to produce clean energy and bolster local food production, showcasing the mutual advantages of integrating agriculture with renewable energy.?

Decarbonizing global supply chains?

LEGO Group is linking a portion of bonuses for all employees to emissions reduction goals as part of its strategy to meet climate targets, aligning with its commitment to achieve net zero emissions by 2050. The performance management scheme’s new KPI includes Scope 3 business travel emissions, and the company plans to expand it to cover the rest of its Scope 3 emissions.??

Meanwhile, Microsoft is implementing more than 80 measures to address its Scope 3 emissions , which have climbed by more than 30% since 2020. Scope 3 represents 96% of the company’s emissions. Under the new plans, frequently used suppliers must switch to carbon-free energy by 2030.??

Lastly, Apple has made significant progress toward its goal of achieving a carbon-neutral supply chain by 2030, with over 95% of its suppliers committing to using 100% renewable energy for Apple production by 2030. ?

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. ?

Companies setting their ambition for net zero include:?

• 8,337 companies working to cut their emissions in line with science through SBTi? ?
• 7,912 small and medium-sized enterprises working to cut emissions with the SME Climate Hub? ?
• 484 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+.? ?
• 129 companies are committed to improving their energy efficiency through EP100. ? ?
• 430 companies have committed to 100% renewable energy with RE100 ? ?
• 39 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?

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

Business for Nature COP16 webinar – 11 June?

G7 Summit – 13 - 15 June?

London Climate Action Week – 22 - 30 June????

We Mean Business Coalition C-Suite roundtable at London Climate Action Week – 26 June??? Email Will Connolly and Glyn Hooper to register your interest (C-Suite level only)??

Climate Week NYC – 22 - 29 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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