SpeedRead Sustainability #30: Weekly Highlights

Explore the latest sustainability updates and trends in this edition, which highlights the impacts and risks of social and environmental challenges, alongside innovative solutions that benefit both people and the planet.

Top Story:

2024 Poised to Be Hottest Year on Record

The EU’s Copernicus Climate Change Service confirms 2024 will likely surpass 2023 as the hottest year on record, with temperatures reaching over 1.5°C above pre-industrial levels. Released ahead of COP29 in Azerbaijan, the findings stress the impact of climate change on extreme weather, with scientists urging stronger action to cut carbon emissions and phase out fossil fuels.

Business Spotlight:

REWE’s First Vegan-Only Supermarket Shares Six-Month Findings in Berlin

In April 2024, REWE launched its first 100% vegan store in Berlin, now revealing insights after six months. The compact store attracts around 5,500 weekly customers and stocks over 2,700 vegan items, doubling the plant-based options found in typical REWE outlets. Top-selling items include chocolate croissants, coconut-almond spreads, and plant-based deli sandwiches. Unlike traditional stores, this vegan-only location appeals to customers seeking a fully plant-based shopping experience without needing to check labels.

ENGIE and Meta Sign 260 MW Renewable Energy Agreement

ENGIE North America and Meta have finalized a 260 MW renewable energy deal to power Meta's data centers, supporting its net-zero goals. The energy, sourced from ENGIE’s Sypert Branch solar project in Texas, will begin in 2025. The project will also bring $69 million in local tax revenue, with $45 million directed to schools, and employ over 300 workers during construction.

Los Angeles County Sues Pepsi and Coca-Cola Over Plastic Pollution

Los Angeles County has filed a lawsuit against PepsiCo and Coca-Cola, accusing them of misleading consumers about the recyclability of their plastic bottles and downplaying the environmental impacts of plastic waste. The county alleges the companies promoted a “circular economy” for their products that doesn’t reflect the limited recyclability of plastics. Ranked as top plastic polluters, Pepsi and Coke are under increasing scrutiny for their environmental footprint, as plastic waste and microplastics pose growing health and ecological risks.

Beta Technologies Secures $318 Million to Scale Electric Aviation

Electric aircraft-maker Beta Technologies has raised $318 million in Series C funding, led by Qatar Investment Authority, to accelerate production and certification of its electric aircraft, including eVTOLs. This investment, adding to Beta's $1 billion total funding, will also support expanding its charging infrastructure nationwide.

Samsonite Targets 52% Reduction in Scope 3 Emissions with Increased Recycled Materials

Samsonite has set a goal to reduce its Scope 3 emissions from purchased goods and services by 52% by 2030, largely through expanded use of recycled materials like plastics and aluminum across its brands. This target, based on 2022 levels, aligns with Samsonite’s commitment to cutting emissions throughout its value chain, which constitutes nearly 80% of its total footprint.

Leading Companies Set Diversity and Inclusion Standards

Companies like Hershey, Amazon, and Cisco are advancing diversity and inclusion through impactful initiatives. From Walmart’s $13 billion investment in diverse suppliers to PepsiCo’s global self-ID campaign, these efforts are reshaping workplace culture, boosting innovation, and fostering economic growth in diverse communities.

Sustainability Takes Center Stage at Nitto ATP Finals with Torino Green Project

As the Nitto ATP Finals begin, the Torino Green Project, driven by Nitto, ATP, and the Federazione Italiana Tennis e Padel (FITP), highlights sustainability efforts through initiatives like The Green Wall and the Innovation Summit. The project engages fans in tracking travel emissions, supports climate action goals, and fosters collaboration to promote a circular economy within the sport.

Kering, GSK, and Holcim Set New Science-Based Targets to Combat Biodiversity Loss

In a significant push to address biodiversity loss, companies like Kering, GSK, and Holcim have adopted science-based targets established by the Science Based Targets Network (SBTN) focused on protecting land and freshwater resources. This initiative, launched at the COP16 summit in Cali, Colombia, aims to reduce the impact of industries on nature, with commitments to sustainable land use, freshwater conservation, and future plans for marine biodiversity protection.

Google, Meta, and Nvidia Join DCFlex to Address Data Center Power Demands

Google, Meta, Nvidia, and leading energy companies have launched DCFlex, an initiative led by the Electric Power Research Institute (EPRI) to address the rising energy demands of U.S. data centers. By 2030, data centers could consume up to 10% of U.S. electricity, double current levels. DCFlex plans to establish demonstration hubs to test grid-friendly technologies, including carbon-aware computing and renewable-based backup systems.

Trends & Insights:

Sometimes Sustainability Costs More. So What?

Corporate sustainability often faces criticism for its costs, but treating this as a barrier overlooks the long-term value it can create. Andrew Winston argues that sustainable choices, like using eco-friendly materials or improving human rights practices, may come with higher upfront costs but drive future value through lower turnover, enhanced brand loyalty, and innovation.

Reporting Matters 2024: Changing Gears in Sustainability Reporting

The WBCSD's 2024 "Reporting Matters" report, created in partnership with Radley Yeldar, reveals shifts in sustainability reporting, showing how companies adapt to rising expectations. Key findings highlight that 77% of companies now use double materiality processes, up from 55% in 2023, and 73% link executive compensation to sustainability metrics. Additionally, references to frameworks like TNFD and SBTN have surged, with 90% of reports now including external assurance.

UN Warns World Is Set for 3.1°C Warming Without Urgent Climate Action

A recent UN Environment Program report reveals that, without stronger climate policies, global temperatures could rise by 3.1°C by the century’s end, significantly overshooting the critical 1.5°C target needed to avoid severe climate impacts. Current policies have made minimal progress, with Madagascar as the only nation improving its 2030 climate goals.

Populism Threatens Democracy and UN SDG 16 in the Global North

Growing disillusionment with democracy is weakening trust in democratic institutions across advanced economies, jeopardizing UN Sustainable Development Goal 16, which focuses on building inclusive and accountable institutions. GlobeScan’s research reveals high levels of skepticism in countries like the USA (58%), UK (55%), and France (53%), where citizens feel disconnected from their governments. This discontent fuels populism, further eroding democratic norms and challenging sustainable governance.

Climate Crisis Could Slash Global Economic Growth by One-Third, Central Banks Warn

New climate modeling from the Network for Greening the Financial System (NGFS) reveals that global economic growth may fall by a third due to physical shocks from climate breakdown, including extreme weather and the costs of adaptation. The report, however, may still underestimate risks by not fully accounting for tipping points like the melting Greenland ice sheet and related issues such as human health impacts, migration, and biodiversity loss, highlighting an urgent call for more comprehensive climate risk assessment.

New York City Declares First Drought Watch in Over 20 Years

A historically warm, dry autumn has led to a drought watch in New York City, marking the first in two decades. Reservoir levels have fallen to 64%, significantly below average. Though no restrictions are in place, officials urge residents to conserve water to delay more severe measures. The drought reflects broader climate trends, with dry conditions intensifying across the Northeast and beyond, exacerbated by climate change.

UAE to Invest $54 Billion in Renewable Energy for Net Zero Goal

The United Arab Emirates has committed $54 billion to boost its renewable energy capacity over the next seven years, aiming for net-zero emissions by 2050. The UAE will focus on hydrogen as a primary clean energy source, with plans to triple its renewable energy output. This investment aligns with the country’s ambitious sustainability targets as it looks to diversify its energy mix.

Local Engagement Key to Revitalizing Urban Cores

Successful urban regeneration hinges on engaging local stakeholders to reshape underused spaces and boost neighborhood vitality. Initiatives like Birmingham’s Digital City Partnership highlight how local input drives impactful projects, from digital connectivity to sustainable design. For lasting success, communities must be involved throughout, ensuring projects reflect local needs and culture.

Engaging Customers in Complex Sustainability Transitions

Corporate fears about over-simplifying or under-emphasizing sustainability are driving a "green recession" in which companies hesitate to promote their efforts. To navigate this, brands can use two strategies: creating a "deep green" carve-out, as Volvo did with Polestar, or establishing a "deep green hero" within the existing brand, like Nucor’s net-zero steel, Econiq. These approaches allow companies to highlight genuine progress without risking accusations of greenwashing.

EU Gears Up for New Plastic Recycling Regulations

Starting in 2025, EU countries must ensure PET beverage bottles contain at least 25% recycled plastic, with targets rising to 30% by 2030. This move is part of the EU’s broader commitment to building a circular, eco-friendly economy and reducing plastic pollution. However, industry experts question if these goals will succeed without clear penalties and consistent auditing across member states.

Understanding ‘Loss and Damage’ from Climate Change: Key Questions

As climate impacts escalate, the concept of “loss and damage” addresses irreversible climate consequences, like extreme weather and rising seas, that adaptation can’t mitigate. Affecting vulnerable communities most, this issue has spurred debates over financial responsibility, with developed countries resisting liability. The UN’s new Fund for Responding to Loss and Damage (FRLD), launched at COP28, aims to mobilize support.

How CEOs Can Achieve Both AI and Climate Goals

AI and cloud operations are driving a major increase in U.S. energy demand, putting net-zero commitments at risk. CEOs can bridge AI and climate goals by aligning efforts across industries: energy companies can identify available grid capacity and build climate-friendly infrastructure with tech partners, while AI giants, or "hyperscalers," optimize power use by running smaller models and shifting workloads based on energy availability.

Addressing Subsidence in Sinking Cities

Cities like New York and Jakarta face severe subsidence challenges due to groundwater extraction, infrastructure weight, and natural geological processes. Mitigating this issue requires a multifaceted approach, including improving water infrastructure, forming public-private partnerships, promoting industry best practices, and educating communities on water conservation.

The U.S. Faces an Urgent 'Water Bubble' Crisis

Rising water scarcity and deteriorating water quality are stressing the U.S. water system, driven by climate change, aging infrastructure, and water waste. The western U.S. is especially impacted by mega-droughts, while outdated infrastructure and inefficient water use compound the problem nationwide. Companies like Moen are advancing solutions, from leak-detection tech to conservation programs, aiming to reduce waste and ease pressures on natural resources.

China Ramps Up Climate Finance Support for Developing Nations

China has become a key provider of climate finance, contributing nearly $45 billion to support developing countries between 2013 and 2022. This financing, which spans bilateral and multilateral aid, export credits, and private sector mobilization, accounts for 6.1% of the climate finance from developed countries during the same period.

57% of Latin American Companies Not Ready for Global Sustainability Standards

A recent RSM report reveals that 57% of Latin American companies lag in implementing global sustainability standards. Only 46% of businesses in the region have a formal sustainability strategy, with leadership often citing disconnects in the C-suite and insufficient training as major obstacles. Brazil and Chile lead the region in ESG progress, while countries like Mexico face challenges due to less stringent regulations.

Gender Inequality Persists Despite Rising Awareness

Awareness of gender inequality has grown, with 71% recognizing its prevalence. Yet, stereotypes endure: 41% believe men and women have innate aptitudes in science and literature, while 38% view women as bigger spenders. In workplaces, 74% of professionals have witnessed sexism, and 52% of women report disadvantageous treatment, including lower pay (28%) and restricted advancement. Women hold 33% of management roles, with full parity expected by 2053.

Campaigns and Initiatives Roundup:

WWF Japan’s Shopping Basket Voting Encourages Sustainability Input from Shoppers

WWF Japan has introduced a unique 'Shopping Basket Voting' initiative, transforming basket returns into a simple way for shoppers to vote on sustainability measures. Shoppers cast votes on actions like adding cooler doors or removing plastic meat trays by returning baskets to designated ‘Yes’ or ‘No’ areas. This approach tackles barriers to sustainable choices, as many consumers find such options costly or ineffective.

Turkish Airlines Introduces Ancient Anatolian Bread to In-Flight Dining

Turkish Airlines has added a historical touch to its in-flight dining by serving bread made from wheat sourced in Ta? Tepeler, an ancient agricultural site in Southeastern Anatolia. Business class passengers on international flights from Istanbul now enjoy these warm loaves, presented in cloth bags detailing their origin.