Spark Newsletter – January 2024

Spark Newsletter – January 2024

Happy New Year!

This month’s newsletter takes a look at:

  • Some key takeaways from COP28.
  • Business risks from biodiversity loss.
  • Benefits of moving to a cloud-based EHS and ESG system.
  • The role of double materiality in corporate sustainability efforts.
  • Navigating supply chain risk in 2024.


COP28 and the Roadmap to Mission 1.5°C

With 85,000 participants, COP28 was the largest climate summit in history and had some unique components and challenges that set it apart from previous conferences.

The primary feature of COP28 was the conclusion of the world's first Global Stocktake, which assesses the global action taken so far to address climate change. The Global Stocktake now offers a roadmap for climate action before the end of the decade. Countries must meet their financial promises and implement national plans. In the words of U.N. Climate Change Executive Secretary Simon Stiell, “Now all governments and businesses need to turn these pledges into real-economy outcomes, without delay.”

COP28 also included discussions on energy transition, climate finance and loss and damage associated with climate change. Some notable pledges in those areas:

  • Energy transition: At least 130 governments pledged to triple worldwide installed renewable energy generation capacity to at least 11,000 gigawatts by 2030.
  • Climate finance: Six new pledges totaling $3.5 billion to the?Green Climate Fund?(GCF), which was established at COP16 in Cancun, Mexico, brought the total level of support to $12.8 billion from 31 countries.
  • Loss and damage: To support climate adaptation and build resilience in affected regions, nations pledged $792 million to operationalize loss and damage principles.

What lies ahead? Climate finance targets must be drawn up ahead of COP29, which is taking place later this year in Baku, Azerbaijan. Ahead of COP30 in Brazil in 2025, parties must submit new commitments that cover GHG emissions and are fully aligned with the 1.5°C goal.


Why Biodiversity Loss Is a Risk for Businesses

Biodiversity refers to the variety of animals, plants, fungi and even microorganisms such as bacteria that can be found in the natural world, and it supports everything in nature that is needed to survive: food, clean water, medicine and shelter. Yet current economic systems are increasing the pressure on the planet and its natural resources, and human activity is heavily interfering in the balance of ecosystems.

Regulatory disclosure requirements on sustainability have been joined by voluntary standards for nature-related financial disclosures. Launched in September 2023, the?Taskforce on Nature-related Financial Disclosures (TNFD)?framework aims at enabling organizations to report and act on evolving nature-related risks. With the TNFD framework, companies can assess the impacts of nature-related topics on their operations and financial performance, as well as the impacts their activities have on ecosystems. It also supports them in developing and implementing a strategic risk management plan, including the allocation of capital.

Learn more about risks, opportunities and impacts of biodiversity loss.


Moving to a Cloud-Based EHS and ESG System

Having a cloud-based system has become even more important as EHS and ESG data comes under scrutiny from regulators and stakeholders.

David Klocek, vice president of services at Sphera, was joined on the SpheraNOW ESG podcast by Nathan Robinson, partner of digital services at ERM, and Priyanka Rajkumar, associate partner for change and transformation at ERM, for a conversation about the journey of moving to a cloud-based EHS and ESG system. They discuss how to build a business case, the key implementation and data considerations and the importance of change management.

Listen to the podcast.


Double Materiality: The Key to Corporate Sustainability

The concept of double materiality has gained significant attention due to its inclusion in the?European Sustainability Reporting Standards (ESRS). Double materiality encompasses two dimensions: impact materiality and financial materiality. Specifically,?double materiality?means conducting impact assessments and financial assessments to create a balance between internal and external demands.

This dual perspective contributes to better decision-making and helps companies better align their sustainability targets and business goals. With a more comprehensive view of their material topics, companies can build a robust and transparent?sustainability roadmap.

Learn more about the role of double materiality in corporate sustainability efforts.


Navigating Supply Chain Risk in 2024

Supply chain transparency has become increasingly important as companies work to assess and report their Scope 3 emissions. Heiko Schwarz, global supply chain risk advisor at Sphera, shared insights on navigating supply chain risk in the year ahead with Spend Matters.

Heiko Schwarz, global supply chain risk advisor at Sphera

Read the article for Heiko’s thoughts on performing Scope 3 carbon emissions assessments, achieving supply chain transparency and utilizing advanced SCRM solutions.


We hope you found this issue of the Spark Newsletter to be informative and insightful. Between issues, you can keep current with the latest from Sphera by following us on LinkedIn or by visiting us at sphera.com.

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