Sustainability Progress Report #22

?? Welcome to the Sustainability Progress Report! This is a weekly newsletter that explores news in corporate sustainability, corporate best practices, changes in regulation and compliance, EU climate and green energy policies, breakthroughs in technological innovation, worldwide impacts of climate change, government and community response to it, labour rights, and due diligence. It’s usually published on Fridays (unless vacation ??). If you’re new here and you’d like to stay up-to-date, click the “Subscribe” button above.?

How is the EU managing its climate stripes this week?

Legend:?

??? climate change?

?? fires?

?? litigation/violation

???? regulatory/policy changes??

?? financial????

?? waste/pollution?

?? forests/biodiversity?

?? water?

?? energy??

?? decarbonization??

?? emissions?

?? reporting?

?? food?

?? transport

???? labour or human rights?

?? resource

Regulatory talks.

Datamaran published ESG developments in regulation and disclosure requirements. (to the source ) ????????

The EU's CBAM targets industries with high carbon emissions, such as aluminium, cement, electricity, fertilisers, hydrogen, iron, and steel. The CBAM is expected to broaden to include industries covered by the EU ETS as the EU strengthens its climate policies. It is expected to impact developing countries in the Asia Pacific region, which rely more on carbon-intensive inputs. (to the source ) ????????

The Green Deal requires €520 billion per year from 2021-2030, with experts arguing that the focus should be on mitigating social impacts on vulnerable communities. The EU introduced a €17.5 billion Just Transition Fund, but critics argue it is too small. Brussels plans to provide additional funding through a Social Climate Fund. (to the source ) ??????

The China Chamber of Commerce to the EU urged the EU and China to negotiate a resolution to impose high tariffs on Chinese battery electric vehicles, arguing that such tariffs could harm the EU's climate objectives and industrial competitiveness. (to the source ) ??????

The EU's Corporate Sustainability Reporting Directive (CSRD) is under threat due to a 'bare minimum' approach to compliance, with companies meeting only the minimum requirements, which could undermine the regulation and threaten EU's climate objectives. (to the source ) ??????

Industry talks.

South Korea is recycling 15.000 tons of daily food waste, using it for composting, feeding livestock, or biogas production. This achievement was achieved by banning food scraps from landfills and mandating residents to separate food waste from trash and recycling. (to the source ) ????

Coffee prices surged globally due to factors like inflation, war in Ukraine, and underwater drone attacks. Inflation made essential goods more expensive, while the war increased energy costs and supply chain issues. Yemen's Houthi rebels disrupt transport, leading to longer transport times and higher costs. Policymakers in Brussels implemented EU rules to combat deforestation, while climate change also made coffee more expensive. Coffee businesses face increased costs due to labour costs and the long growing cycle of coffee plants. (to the source ) ????

The EU's alternative protein sector faces €800 million in 2023 investments, primarily from Swedish plant-based Oatly and Dutch Mosa Meat. Scaling production remains a challenge due to expensive lab-grown meat technologies. (to the source ) ????

EU potato production dropped by 36.7% from 2000 to 2023 due to stricter regulations, climate change, and changing consumer habits. Rising costs and millennials' diet changes may encourage farmers to adopt less risky crops. Germany leads in production, followed by France and the Netherlands. (to the source ) ????

French wheat producers are facing a 25% drop in production due to wet winter and summer, causing a 25% drop in wheat production compared to 2023. This is exacerbated by increased energy costs following Russia's invasion of Ukraine. (to the source ) ????

Net Zero Tracker reveals that most major companies are not aligned with achieving net zero emissions, with nearly two-thirds of listed companies on a trajectory that would warm the planet more than 2°C above pre-industrial levels. (to the source ) ????

Amazon, Meta, and Google are drafting a new rule for reporting greenhouse gas emissions, which critics argue could lead to inaccurate emissions numbers. The GHG Protocol, established in the 1990s, requires companies to report emissions and issue renewable energy certificates, but concerns persist about their use to offset real-world emissions. (to the source ) ????

?? Read more in the report .

Nvidia is implementing liquid cooling technology in its GB200 server racks to reduce power consumption and increase computing power, a move that could be beneficial for higher-end AI applications, despite challenges such as leaks and component shortages. (to the source ) ????

The IPCC has not agreed on the timeline for the seventh assessment report, which is crucial for the UN's second global stocktake. Some countries, like Belize, the US, and the UK, support an accelerated timeline, while others, like Kenya, India, China, and South Africa, advocate for a longer timeline. (to the source ) ????

GM has signed a 15-year renewable energy purchase agreement with NorthStar Clean Energy to fuel three assembly plants, marking its largest power purchase deal and a significant milestone towards carbon neutrality by 2040. (to the source ) ????

KLA, a global semiconductor equipment company, was approved by the SBTi for its Scope 3 goal to reduce greenhouse gas emissions by 52% per billion transistors inspected, measured, or processed by customers by 2030. KLA's acceptance to the SBTi is seen as a step towards setting a clear benchmark for the industry and accelerating efforts towards reduced emissions and better performance. (to the source ) ????

A carbon capture facility near Brevik, Norway, is set to be the first globally to capture carbon in cement production. If successful, it could lead to investments in carbon-free concrete, crucial for climate targets. Failure could delay this technology. (to the source ) ????

The International Maritime Organization (IMO) is set to discuss implementing a carbon levy to reduce shipping emissions, with the International Chamber of Shipping proposing a fee and reward system, while the 6PAC+ alliance advocates for a higher levy. (to the source ) ????

Tens of thousands of Serbian protesters called a government crisis meeting against Rio Tinto's lithium mine, fearing pollution in the western Jadar region. The politically motivated protests ended with a train station blockade. The Rio Tinto project is officially supported by the EU, with deals granting exclusive access to Serbian lithium to EU car makers. (to the source ) ????

The European Investment Bank (EIB) announced a €5 billion wind package, including a €500 million counter-guarantee deal with Deutsche Bank. The deal aims to support renewable energy expansion and lower sustainable energy prices in the European wind industry. The EIB is in negotiations to close more deals under the package. (to the source ) ????

A Dutch hack of solar panels exposed their vulnerability to cyber attacks, prompting calls for more rigorous safety assessments. The hack revealed that converters, crucial parts of solar panels, can be easily hacked or used for DDoS attacks. (to the source ) ????

Global talks.

The UAE is introducing criminal penalties of up to AED 1 million for fictitious recruitment, including fictitious Emiratisation, as part of new labour law amendments. Employers will be fined between AED 100.000 and AED 1 million. (to the source ) ????????

Canadian trade union is suing China-based Wescast Industries for withholding $10 million in termination and severance pay from 200 workers who lost jobs in July 2023. (to the source ) ????????

Ember's 2023 analysis reveals that solar power generation in Peninsular Malaysia was 53% cheaper than fossil fuels, highlighting the country's solar potential. The report calls for accelerated solar growth and grid integration to meet renewable energy targets. (to the source ) ????

South Korea is urging automakers to disclose the manufacturers of batteries used in electric vehicles (EVs) to address concerns over fires. A recent blaze in an underground parking lot took over eight hours to extinguish, causing damage to 140 cars and forcing residents to move to shelters. (to the source ) ????

Greece's worst wildfire aided by strong winds spread into Athens suburbs, causing hundreds of people to flee and choking busy roads with smoke and ash. Over 700 firefighters, volunteers, and 35 water bombing aircraft are battling the conflagration. (to the source ) ?????

Puerto Rico is suing the oil and gas industry for at least $1 billion, along with over two dozen other states, for climate change-related damages. The lawsuit claims companies like Exxon Mobil, BP, and Chevron used unfair trade practices and failed to warn about environmental risks. The industry opposes climate liability suits and calls for legislative energy policy decisions. (to the source ) ?????

Legal action is needed to hold those with climate responsibility accountable. By the end of last year, 2.666 climate-litigation cases had been filed worldwide, with most claimants being individuals and NGOs. The International Court of Justice could change climate policy, especially impacting low- and middle-income countries. (to the source ) ?????

Singapore's environmental rule of law was criticised for its inconsistent application, despite environmental purpose. The country's commitment to net-zero emissions under the Paris Agreement requires policies and instruments, including the Singapore Green Plan 2030 and supercomputing for better forecasting of rainfall, temperature, and sea levels. (to the source ) ?????

A new analysis suggests that tropical glaciers in the Andes Mountains are smaller than they have been since the last major ice age, potentially leading to future global glacial melting, as the bedrock exposed at the margins of four glaciers has not seen light since 11.700 years ago. (to the source ) ??????

Puerto Rico has activated the National Guard and cancelled public school classes due to Tropical Storm Ernesto, which formed in the Atlantic Ocean. Forecasters warn that Ernesto is expected to hit US territory, causing floods and landslides and pass near St. Barts and St. Martin. (to the source ) ??????

Australia's Commonwealth Bank (CBA) will cease financing fossil fuel companies that fail to meet the Paris Agreement's climate goals by 2024. Clients will not receive new corporate or trade finance or bond facilitation beyond December 2024. The bank set core criteria for clients, including a medium-term emissions reduction plan for 2035 and a net-zero ambition. (to the source ) ????

The World Bank has issued a $225 million principal-protected nine-year bond linked to reforestation in Brazil's Amazon rainforest, offering investors a return linked to carbon removal units, a departure from previous deals. The minimum guaranteed annual return is about 1.745%, with up to 4.362% if projects perform as expected. (to the source ) ????

Congo is set to receive $8.3 million in carbon credits for its efforts in preserving forests and reducing emissions, equivalent to 5 billion FCFA, through a Benefit Sharing Plan, following audit reports. (to the source ) ????

Companies are facing challenges in meeting their carbon emissions targets, with over half of the world's largest 2.000 publicly listed companies aiming to cut emissions to zero by 2050. Environmental advocates argue that companies are falling behind, and clean technologies are not being implemented on time. SBTi, considered the gold standard for corporate net-zero plans, delayed a final decision on carbon offsets to 2025. (to the source ) ????

Egypt launched Africa's first carbon market, marking a significant step in combating climate change. The launch, facilitated by the Development Policy Financing Program, aligns with Egypt's Vision 2030 and National Climate Change Strategy 2050, aiming for economic and environmental balance. (to the source ) ??????

The House Committee on Climate Change has approved the "Low Carbon Economy Investment Act of 2023," a bill guiding the Philippines toward a low-carbon future. The bill mandates large enterprises to develop decarbonisation plans and provides tools for businesses to achieve these goals. It introduces a carbon pricing framework, requiring companies to allocate their Decarbonisation Fund for emissions exceeding targets, also supporting investments in low-carbon economies, ensuring a financially sound transition. (to the source ) ??????

The 2023 record-breaking warming has sparked discussions about global warming acceleration, primarily due to anthropogenic emissions. However, the central expectation is a declining rate of warming under current climate policies. A non-linear response to climate change is expected, with a projected cooling rate of 0.21°C/decade. (to the source ) ??????

The Drax power station in Yorkshire has been paid ￡7bn in public subsidies since 2012 to switch from coal to biomass. The plant is Britain's biggest paid polluter, producing four times more carbon than the last surviving coal-fired power station. A study shows burning wood pellets releases more emissions per unit of electricity generated than coal or gas. (to the source ) ????

Research has found that the majority of cloud-stored data is "dark data," meaning it is used once and never visited again. This means that memes, jokes, and films that we share with friends and family are sitting in data centres, using up energy. Data centres will account for 6% of UK electricity consumption by 2030 as 68% of company and personal data is never used again. (to the source ) ????

A new study shows the Arctic Ocean's ability to absorb carbon dioxide is waning due to melting permafrost and coastal erosion, potentially leading to an annual increase in atmospheric carbon dioxide by 2100. This could reduce the ocean's capacity to absorb over 14 million tons of CO2 annually by the century's end, altering Earth's traditional cycles. (to the source ) ????

Researchers at the University of Birmingham discovered that mature oak trees can absorb planet-warming emissions more quickly. After seven years of exposure to high carbon dioxide levels, the trees increased their wood production. The study emphasises the importance of protecting and maintaining mature forests to combat climate change. (to the source ) ????

The University of Birmingham scientists suggest that a 'planetary health diet', consisting of fruits, vegetables, grains, plant-based protein, and unsaturated oils, could reduce food-related greenhouse gas emissions by 17% if adopted worldwide. The diet, which includes only small amounts of dairy and animal-sourced protein, could eliminate 32.4% of food-related emissions, crucial for achieving climate goals. (to the source ) ????

FAO released a draft report on livestock emissions, which has been criticised for promoting pro-industry bias and cherry-picking data. The report, part of an assessment to reduce agricultural emissions, supports the growth of the livestock sector, stating that it contributes to food security, nutrition, and raw materials. The report does not assess how diets with more plant protein could improve food security. (to the source ) ????

Chinese landscape architect Yu and Turenscape have created nature-based "sponge cities" to absorb and retain stormwater, reducing flooding. Over 10.000 projects were designed for 250 cities worldwide, mostly in mainland China. Experts suggest hard engineering such as dams and embankments is needed to deal with floods. (to the source ) ????

A study found that nearly half of the samples of claimed-to-be degradable tableware, lunch boxes, plates, cups, knives, and straws, made from materials including degradable plastic, wood, and paper did not completely decompose after two months. Knives and bamboo dishes hardly broke down. (to the source ) ????

What were your most interesting takeaways this week? Did anything surprise you? Comment below and share your unique take on sustainability ??