Sustainability Progress Report #23

?? 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?

?? litigation/violation

???? regulatory/policy changes??

?? financial????

?? waste/pollution?

?? forests/biodiversity?

?? water?

?? energy??

?? decarbonization??

?? emissions?

? innovation?

?? reporting/governance

?? food?

?? fisheries

?? apparel?

?? transport

?? air transport

?? animals/biodiversity

???? labour or human rights?

?? partnership for the goals

Regulatory talks.

The European Commission announced a draft decision to impose definitive countervailing duties on imports of battery EVs from China. The decision includes adjustments to proposed duty rates, an individual duty rate for Tesla, and the decision not to retroactively collect duties. The final decision will be presented to Member States. (to the source) ??????

A study in Nature Climate Change suggests that the Paris Agreement's goal of limiting global warming to 1.5°C is no longer achievable due to realistic constraints in implementing climate policies. The study highlights the need for international support to increase institutional capacities and make clean technology deployment cheaper and easier for countries lacking regulatory capacity. (to the source) ???????

A study reveals that only around 4% of climate policies implemented over the past two decades substantially reduced emissions. While 63 policies successfully reduced carbon emissions, the UN estimates that emissions must fall by 23 billion metric tons by 2030 to meet the 2015 Paris Agreement targets. The research could provide models for the best paths forward in climate mitigation, but there is no silver bullet solution. (to the source) ???????

The International Court of Justice is set to hold public hearings on 2 December in a landmark case seeking a non-binding advisory opinion on states' obligations to fight climate change. The panel of 15 judges will define countries' legal obligations to fight climate change, answer questions on international law obligations, and legal consequences for governments causing harm to the environment. (to the source) ??????

The European seed industry faces a threat from the patent industry, which could privatise 1.200 seed varieties as agrochemical companies claim to create them through innovations. The European Patent Office grants these patents, funded by corporate patent fees. Patents obtained through New Genomic Techniques (NGTs) have the potential to improve disease resistance and drought resistance in plants. The EU Parliament has voted to deregulate NGTs, but a final decision is not expected soon. (to the source) ??????

Industry talks.

Germany's wind generation is projected to slow down by 1% in 2024, potentially leading to increased fossil fuel use. Wind farms accounted for 28% of Germany's utility-scale electricity in 2023. (to the source) ????

Solar farms in Central and Eastern Europe are experiencing faster electricity generation than in other European regions. In the first seven months of 2024, utility-run solar output in the five largest producers increased by 55% from 2023, over twice the growth rate for Europe. Poland and Hungary are key drivers of this growth, with Poland's generation reaching 11.3 TWh and Hungary's 5.8 TWh. (to the source) ????

PUMA was ranked in the top ten of Europe's Climate Leaders by Financial Times. The company set new targets for greenhouse gas reduction, aiming to decrease Scope 1 and 2 emissions by 90% and Scope 3 emissions by 33% by 2030. PUMA's progress in reducing emissions is attributed to its core suppliers' increased use of renewable energy and its investment in electric vehicles. (to the source) ????

Turkish steelmakers Tosyal? Demir ?elik and Yacizi Demir Celik plan to build solar power plants to meet their electricity needs, to avoid paying for a carbon border tax. The 88 MW project in Toprakkale and 50 MW in Afyon are planned to generate 245 GWh per year. (to the source) ????

Oxford academics suggest that cutting emissions should be the primary strategy for slowing global warming, alongside new technology for GHG removal. To achieve net-zero emissions, governments and corporations must cut emissions and remove residual pollution. (to the source) ????

China has approved 11 nuclear reactors across five sites to combat rising fossil fuel emissions, with construction taking around five years. (to the source) ????

C-Questra and RepAir Carbon announced the first onshore Carbon Dioxide Removal project in the EU, aiming to remove 100.000 tons of CO2 per year by 2030, potentially scaling up to megatons by 2035. The project, located near Paris, uses no heat and only electricity, reducing energy consumption by 70%. (to the source) ????

Virginia's data center alley has seen a two-thirds increase in water consumption since 2019, warning of a surge in demand due to artificial intelligence. (to the source) ????

A survey shows that 56% of Fortune 500 companies view AI as a potential risk, up from 9% in 2022. Only 33 companies saw AI as an opportunity, highlighting its impact across various industries. (to the source) ????

Two companies in construction materials are partnering to create low-carbon insulation products to reduce carbon emissions in the industry. The partnership aims to create energy-efficient buildings. (to the source) ????

The plastics industry is pushing for the label "recyclable" on items likely to end up in landfills and incinerators. The Federal Trade Commission (FTC) is revising its Green Guides to curb greenwashing. Environmental experts fear the FTC could back this, as the industry has been misleading the public for decades. Recyclability could rather be improved through tracking, transparency, and removing toxic chemicals. (to the source) ????

Soil contains more mercury than previously thought, threatening food production and security. Climate change damages essential crops, and high levels of mercury could suppress growth and harm human health. Long-term control is needed. (to the source) ????

Japan Food Ecology Center creates a sustainable food loop by turning leftover human food into high-quality pig feed. Fermentation scientists are experimenting with new fermented food types, costing farmers half the price of conventional feed. (to the source) ????

Trans-Tasman Resources plans to mine iron sands in South Taranaki, New Zealand, causing legal disputes with locals. The project, expected to produce 50m tonnes annually for 35 years, could harm marine life, and impact fishing, and endangered mammals. International pressure for a pause on seafloor mining is growing. (to the source) ????

Environmental activists from the Extinction Rebellion tied themselves to Amsterdam's harbour infrastructure, halting a cruise ship with banners, and calling for pollution-free visits. Police removed eight protesters, releasing them later on. (to the source) ????

Ford Motor is canceling plans for a large electric SUV due to pricing pressure and lower-than-expected demand. (to the source) ????

The 2024 Morrison Foerster ESG survey reveals a shift towards governance as the primary concern (61% of respondents), with C-suite leaders and CCOs becoming more involved. ESG considerations influence strategic change, but confidence in existing programs declines (only 41% of respondents confident). Future ESG depends on internal collaboration, good governance, and innovative technologies. (to the source) ????

Harley-Davidson drops its diversity, equity, and inclusion (DEI) initiatives under pressure from an activist's campaign. The company will limit training to legal requirements and reorganise employee resource groups to focus on business development and mentoring. The decision has been criticised for undermining consumer trust and employee success. (to the source) ??????

A survey shows that over two-thirds of large US companies have dedicated budgets for sustainability reporting, and nearly all plan to increase spending on sustainability and compliance reporting. The survey surveyed 95 executives, focusing on companies' preparedness for California laws SB 253 and SB 261, and found that 93% of respondents had dedicated budgets for reporting and compliance. (to the source) ????

The retail sector is focusing on social and environmental responsibility, with 90% planning to increase ESG investments over the next three years. 58% plan to use AI for ESG data collection. However, many businesses lack the digital infrastructure to fully leverage AI's potential. (to the source) ????

A report suggests seven key areas that drive the integration of ESG across industries. Institutional investors are increasingly investing in ESG-related investments, with 60% reporting higher performance yields and 78% willing to pay higher fees. Building Performance Standards are setting new benchmarks for energy efficiency and sustainability in real estate, and mandatory ESG reporting is becoming more prevalent. (to the source) ????

Over the past 18 months, many companies have retracted their commitments to sustainability due to conservative-led campaigns, underperformance of ESG equity funds, and difficulty justifying sustainability investments. To achieve real results, companies should rethink relationships with competitors and suppliers, shift from short-term transactions to long-term trust-based relationships, and rebalance their investment portfolios. (to the source) ????

DNA specialist Haelixa and global regenerative agriculture framework regenagri partnered to advance regenerative agriculture using DNA marking and testing technology. Haelixa is the first traceability provider approved for regenagri's Traceability Program, ensuring authenticity and compliance with import and export regulations. This partnership sets a new benchmark for regenerative agriculture. (to the source) ????

The EU is funding an upcycling project called WaSeaBi to address global food waste. The project uses innovative techniques like enzyme hydrolysis to extract and enhance ingredients with strong umami flavours from fish waste. (to the source) ????

Nextevo International, a company that partnered with Southeast Asian farmers to produce yarn out of pineapple waste, recently certified its pineapple leaf fibre (PALF) to Oeko-Tex Standard 100, marking the first company to do so. (to the source) ????

Ganni committed to removing fibres from endangered forests from textiles and paper packaging. They're shifting to low-carbon, circular alternatives, including recycled fabrics and agricultural waste packaging. (to the source) ????

H&M plans to close its digital fashion outlet, Afound, which offered online sales across seven European countries. The decision was made due to low demand and brands increasingly using their own channels for sales. The closure will occur in autumn. (to the source) ????

The University of Massachusetts researchers created a chalk-based coating that can cool air underneath treated fabric by up to 8°F, using chemical vapour deposition and observing cooler temperatures under the fabric. (to the source) ???

ASN Impact Investors, a €4.2bn sustainability-focused asset manager, divests from the clothing industry due to insufficient progress on sustainability and human rights issues by major companies like H&M, Zara, and Asics. (to the source) ??????

Better Cotton Pakistan is partnering with Punjab's PULSE to validate farm-level data, streamline collection, and reduce manual creation costs for smallholder countries like Pakistan. (to the source) ????

According to a survey done in the food + beverage, apparel + footwear, and ICT sectors, 58% of multinational companies are prepared to address supply chain forced labour risks, but only 18% disclose data on grievance mechanisms. Only 11% engage with unions and have capital letters in supply chains. Companies can help advance human rights and promote decent work. (to the source) ??????

BBC StoryWorks, BBC’s in-house studio producing commercial content, has been accused of "greenwashing" the image of companies and countries contributing to global emissions by promoting their climate credentials and preferred solutions. The content was produced for oil and gas companies, LNG companies, and agriculture. (to the source) ?????

Global talks.

Indonesia plans to reallocate 5.8 GW of coal capacity to solar power projects, aiming to create 50.000 jobs and attract US$4.3 billion in investment through clean-energy projects. Converting coal plants into renewable energy could prevent 18 million tonnes of carbon dioxide equivalent emissions. (to the source) ????

Wind turbines in the US have generated more electricity than coal-burning plants for the first time in two months, driven by advancements in technology, tax credits, and state regulations. This marks a significant milestone in the country's energy transition. (to the source) ????

UK oil and gas companies fear government tax increases and investment incentives could threaten ￡200bn of investment in domestic energy, including renewables, and are seeking consultation and Industrial Strategy Council involvement. (to the source) ????

The transition to net zero challenges the global economy, with oil prices uncertain and climate-related damage causing $8.7 trillion annually. Mass EV adoption could weaken oil demand, while price volatility presents opportunities for investors and innovators. (to the source) ????

Climate activists argue that international tourism should be moderated to reduce pollutants, while summer beach holidays and ski holidays face challenges. (to the source) ????

Egypt's National Low-Carbon Hydrogen Strategy aims to diversify energy sources, contribute $18 billion to GDP, and create over 100.000 jobs by 2040, aligning with 'Vision 2030' sustainable development goals. (to the source) ????

New Zealand is reducing emission credits from 45 million to 21 million units between 2025 and 2029 to restore confidence in the Emissions Trading Scheme and align with climate targets, despite the oversupply of units posing a risk. (to the source) ????

NASA's Tanager-1 satellite, launched on August 16, will track methane and carbon dioxide emissions globally. Created by the Carbon Mapper coalition, it scans 50.000 square miles daily, detecting distinct spectral signatures of gases. The data will be accessible to the public. (to the source) ????

Japan's ESG investing is thriving, despite the global slowdown. The country's balanced approach attracts corporations and financial markets, ensuring long-term sustainability. The sustainability bond market doubled in 2023, reaching ￥6.7 trillion. Japan's innovative financial instruments, such as transition bonds, support its 2050 goal of net zero emissions. (to the source) ????

Greenpeace East Asia reports that China approved 10.34 gigawatts of new coal power in the first six months of 2024, a potential turning point in its energy transition. Despite renewable energy growth, coal approvals have increased, with wind and solar power accounting for 11.8 TW of total generation capacity. To meet peak energy demand faster, China should prioritise the development of supply-side structures and load resource guarantee systems. (to the source) ????

Researchers are studying seasonal migration patterns of UK-ringed cormorants to understand their adaptation potential and resilience to climate change. They are using advanced statistical models to predict environmental conditions and estimate the genetic component of seasonal migration, as behavioural changes won’t be enough to adapt to climate change. (to the source) ?????

Enel North America plans to deploy over 6.000 sheep on eight solar plants in Texas, acting as gardeners and reducing the need for herbicides and fossil fuel-powered mowers. The sheep's manure fertilises the soil and can carry wildflower seeds. Enel has already tried solar grazing in Minnesota, resulting in over 200% organic matter improvements. (to the source) ????

An Australian study found that the cattle fed the seaweed supplement reduced methane emissions by over half, with a peak reduction of 91% on day 29. The cattle gained 20kg more than those without the supplement. (to the source) ????

Ecuador's government plans to close 246 oil wells in the Ishpingo, Tambococha, and Tiputini (ITT) fields, which have caused conflict for the Indigenous Waorani people since the 1970s. The deadline to remediate the area is set for August 31, 2032, and phase-out operations are set for December 31, 2029. (to the source) ????

Senegal formed a commission of legal, tax, and energy sector experts to review its oil and gas contracts, aiming to rebalance them in the national interest. (to the source) ??????

Brazilian activist Alexandre Anderson has developed an app to expose environmental damage in Rio de Janeiro's Guanabara Bay, a vital tourist and fishing area. The app allows fishermen to file anonymous complaints, with 20 complaints posted and over 100 others under analysis. Anderson hopes the app will help solve the bay's pollution issues. (to the source) ????

The World Bank has sold a US$225 million bond to fund reforestation in the Amazon rainforest. The bonds will link investors' returns to the climate impact of new trees, rather than emissions avoidance. It will fund reforestation activities, with Microsoft purchasing the carbon credits, among other companies. (to the source) ????

The World Bank raised $6.5 billion in a Sustainable Development Bond issuance, marking its largest order book to date. The $22.7 billion offering attracted over 300 orders, with 75% of investments coming from central banks and 43% from asset managers. (to the source) ????

The US is set to support the global treaty to reduce plastic manufacturing, a shift from its previous siding against it alongside China, Russia, India, and Saudi Arabia. It now calls for an end to plastic pollution by 2040 and measures to cap and phase down production. The US supports the creation of a global list of chemicals and a single, streamlined standard to identify "avoidable plastic products". (to the source) ????

Malaysia's plastic pollution problem could be significantly reduced by introducing an extended producer responsibility (EPR) system, according to industry players. The country produces nearly a million tonnes of post-consumer plastic waste annually and has a plastic recycling rate of just over 35%. The Malaysia Plastics Sustainability Roadmap aims to achieve plastics circularity by 2026 with industry players like Coca-Cola, Nestlé, Unilever, and Tetra Pak establishing the Malaysian Recycling Alliance to address packaging waste issues. (to the source) ????

Microplastics accumulate in human organs, including the brain, causing health concerns. They could increase oxidative stress, cardiovascular disease, fertility issues, cancers, and impaired learning. Most countries lack governmental standards for plastic particles. (to the source) ????

Australia passed a bill requiring large and medium-sized companies to report on climate change, marking a significant step towards a new climate risk disclosure framework. This is part of the government's sustainable finance strategy, aiming to support the transition to a net zero economy. (to the source) ?????

At the Malaysia Carbon Market Forum, bankers and developers discussed capital mobilisation for climate impact projects, emphasising regulatory frameworks and monetizing carbon credits, with Singapore's leading buyer in the ASEAN region. Investors emphasised the importance of a regulatory framework, while developers argued that requirements don't have to be too rigid.? (to the source) ?????

Governments worldwide are balancing climate commitments with fiscal constraints, but financial realities have led to backpedaling, with New Zealand, the UK, and Australia reversing green pledges, promoting mining, and postponing emissions pricing. (to the source) ?????

African countries aim to increase their share of global climate financing at the UN COP meetings, currently receiving less than 1% annually due to limited external funding. Strategies include boosting access to existing global funds like the Green Climate Fund and Global Adaptation Fund. (to the source) ?????

The luxury yacht shipwreck off Sicily demonstrates the increasing danger of sailing in the Mediterranean due to global warming. Climate experts and skippers argue that violent storms are becoming more frequent, and the Mediterranean is becoming more like the Caribbean, with less predictable weather. (to the source) ??????

The American Red Cross is grappling with a 25% drop in national blood inventory due to extreme weather, affecting nearly 100 blood drives and requiring constant hospital demand for lifesaving products. (to the source) ??????

A study warns that dozens of UNESCO World Heritage Sites could be destroyed by 2050 due to climate change, highlighting 50 sites at risk, and urging global preservation efforts. (to the source) ??????

ActionAid reports that Southern African families are forced to marry off daughters for food due to the El Ni?o drought, leaving 56.8 million people struggling. The drought disproportionately affects young women, exacerbating existing inequalities. ActionAid urges SADC leaders to uphold gender equality and women's empowerment principles and provide flexible funding for women-led community protection initiatives. (to the source) ???????

The Pakistan Accord on Health and Safety in the Textile and Garment Industry, signed by 128 brands, aims to reach over 500.000 workers through workplace programs, safety training, and a Complaints Mechanism. (to the source) ????????

Non-profit organisations are urging companies to maintain stable relationships with suppliers in Bangladesh amid political events, promoting human rights due diligence, responsible purchasing practices, and solidarity with workers and colleagues. (to the source) ????????

What news caught your eye this week? What news surprised you? Share your thoughts and let's discuss! ??