Sustainability Progress Report #26

?? 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

?? apparel?

?? transport

???? labour or human rights?

?? supply chains

?? partnership for the goals

?? diseases?

?? resource

Regulatory talks.

Budapest is considering postponing the minimum levy on kerosene, which powers the airline industry, to unblock a stalled European energy taxation reform. The European Commission proposed a 55% cut in CO2 emissions by 2030, but the bill has been delayed. The aviation sector, represented by the lobby group Airlines For Europe, claims airlines already pay significant tax amounts and would pay over €10 billion for allowances under the EUTS. (to the source) ??????

A European Court of Auditors report reveals Croatia and Portugal overestimated climate contributions to projects like clean urban transport and forest climate adaptation. The report also highlighted the overestimation of money for climate action under the European Commission's formula. The Recovery and Resilience Facility (RRF) disbursed €275bn, but its overall contribution was unclear. (to the source) ??????

Australia's House of Representatives passed the Treasury Laws Amendment bill, introducing mandatory climate-related reporting requirements for large and medium-sized companies starting in 2025. (to the source) ??????

The Financial Conduct Authority (FCA) postponed the introduction of new naming and marketing rules for sustainability-related investment products until April 2025 that aim to prevent greenwashing. (to the source) ??????

The Australian government may delay the 2035 climate target announcement due to US election uncertainty and laggard countries' emissions reduction targets, but investors are comfortable with delayed targets aligned with science and ambition. (to the source) ???????

The European Commission has registered two European Citizens' Initiatives, one of which being 'ECI for a Water-Smart and Resilient Europe' to promote water resilience and support water-efficient industries and agriculture. The Commission has not yet analysed the proposal and will respond if one million statements of support are received within a year. (to the source) ??????

Industry talks.

Indonesian palm oil producers are predicting global supply chain disruption due to the EU's new ban on importing deforestation-related commodities. The EU Deforestation Regulation, set to come into force on December 30, led to calls for its delay until 2026. (to the source) ????

Patagonia partnered with Canopy's Pack4Good initiative to reduce deforestation by sourcing packaging fibers from agricultural waste. The partnership aims to avoid the impact of viscose textile production on Ancient and Endangered Forests. (to the source) ????

MIT researchers developed a natural silk and cellulose filtration material to remove persistent chemicals and heavy metals from water. This method will help prevent filter fouling and help reduce the estimated annual cost of $1.5 billion for PFAS remediation. (to the source) ???

University of Missouri researchers developed a solvent capable of removing 98% of tiny plastic particles from water using hydrophobic materials. The solution, made from safe, non-toxic components, repels water, making it a sustainable and potentially innovative solution in plastic filtration strategies. (to the source) ???

Keurig Dr Pepper agreed to pay a civil penalty to the US Securities and Exchange Commission for misleading statements about the recycling of its single-serve pods. The SEC found the company's omission of concerns from two major US recycling companies violated the Securities Exchange Act. The settlement comes amid increased scrutiny of green claims by regulators. (to the source) ????

W.L. Gore filed an Enforcement Action against three plants in Cecil County, accusing them of releasing PFAS into the air and water without measuring the amount. The lawsuit, supported by the Maryland Department of the Environment and the US EPA, and 400 people joined the class action suit. (to the source) ????

Nike shareholders voted against binding agreements with supply chain workers to address human rights issues in high-risk countries. The proposal was supported by Domini Impact Equity Fund, which signed a letter requesting Nike to pay unpaid wages to 4.000 garment workers in Cambodia and Thailand. (to the source) ????????

Northvolt plans to cut jobs as part of a cost-saving strategy amid slowing European EV adoption and stiff competition from Chinese rivals, as the global electric-vehicle market cools and trade tariffs and government incentives sluggish the adoption of EVs. (to the source) ??????

Mitsubishi-owned bulker was retrofitted with WindWings, a rigid wing optimised for wind-assisted propulsion, that reduces greenhouse gas emissions by around 3t of fuel daily on its Singapore-Brazilian crossing. (to the source) ????

McKinsey's study suggests that emissions-free trucks should be priced by half to become affordable alternatives to diesel, and electric and hydrogen vehicles should make up 40% of new sales by 2030. (to the source) ????

China plans to include cement, steel, and aluminum production in its carbon emissions trading scheme by the end of the year, potentially covering 60% of the country's total emissions, surpassing US emissions. (to the source) ????

Google has signed a $10 million agreement with Holocene to capture and store 100,000 tons of CO2 using a combination of solid-based and liquid systems, marking the lowest price paid for DAC-based technology. Google is a part of Frontier Climate's commitment to buy $1 billion of permanent carbon removal by 2030. (to the source) ????

Solar energy is predicted to become the world's largest electricity source by 2027, with Egypt linking a 3GW farm to Greece and Morocco's Xlinks project powering Britain, France mandating solar car parks, and UK installations increasing. (to the source) ????

The UK's Drax power station, the largest renewable energy plant, is facing criticism for being the largest carbon emitter. The government is considering extending a ￡500m subsidy scheme until the end of the decade. However, critics argue that Drax remains the largest carbon emitter in the UK and its owners should not have been allowed to claim billions of pounds in renewable energy subsidies since 2012. The government is preparing to decide whether to extend a subsidy scheme for Drax. (to the source) ????

The EPA updated its Recommendations for Federal Purchasing to include healthcare, laboratories, clothing, uniforms, and food service ware, removing seven non-compliant or discontinued standards to aid buyers in identifying environmentally sustainable products. (to the source) ????

TotalEnergies CEO criticises the EU's ESG regulations, arguing they disadvantage European businesses. The European Round Table for Industry warns overly stringent regulations are threatening competitiveness. (to the source) ????

Bain & Co.'s report indicates that CEOs are shifting their focus from sustainability to artificial intelligence, growth, inflation, and geopolitical uncertainty. With 60% of consumers more concerned about climate change, companies are becoming more realistic in setting targets. However, over a third of businesses still miss Scope 1 and 2 emissions targets. (to the source) ?????

??resource ?????

Global talks.

Samsung Electronics workers at its Sriperumbudur plant in India started an indefinite strike for higher wages, affecting production. The strike follows a four-day one in August, affecting half of daily production. Samsung India is addressing grievances. (to the source) ??????

Fearless Fund, an Atlanta-based venture capital fund, agreed to cease operating a program that provided grants to Black women-run businesses to settle a lawsuit by the American Alliance for Equal Rights, which argued the program violated a Civil War-era law against racial discrimination. (to the source) ??????

MSCI's ESG and Climate segment revenue dropped to 12% in Q2, amid challenges like U.S. political pushback and regulatory issues, but CFO Andrew Wiechmann sees opportunities in sustainable investing. (to the source) ????

The European Investment Bank and Development Bank of Southern Africa will jointly lend an additional 200 million euros to South Africa's renewable energy projects, focusing on solar and onshore wind. (to the source) ????

The Canadian government paid $1.35 million to McKinsey & Company for advice on improving clean technology policies and advising North America's largest oil and gas companies. The firm identified conflicts, but the federal government needs to explain why it offered the contract despite being informed. (to the source) ????

Chinese electric vehicle and hybrid sales increased in August, accounting for 53.9% of all passenger-vehicle sales, despite weaker overall sales, as incentives and a price war eased. (to the source) ????

Morgan Stanley abandons plastic pollution commitment due to inflation and right-wing concerns, shifting focus to AI and geopolitics, and requiring companies to develop low-carbon transition strategies. (to the source) ????

Singapore's Climate Action Group (SYCA) called on the city-state to adopt a leadership role in tackling pollution by pushing for a pollution tax on producers, transparent supply chains, and sustainable waste management solutions. SYCA recommends a global plastic production reduction target of 40% by 2040. (to the source) ????

Apache Stronghold, a Native American group, requested the US Supreme Court to prevent Rio Tinto and BHP from accessing Arizona land for a copper mine. The group argues that the mine would violate the First Amendment's freedom of religion, focusing on the Oak Flat Campground, where Apache worships. (to the source) ??????

The Darién Gap, a dense rainforest connecting Colombia and Panama, is facing a humanitarian crisis due to the COVID-19 pandemic, with migrants to the US doubling and causing unprecedented waste and contamination. (to the source) ??????

Climate Rights International issued a report revealing that European and global northern countries are using harsh punitive measures against environmental activists to restrict the right to peaceful protest, including lengthy prison sentences and criminal charges. The report calls for urgent action to protect basic rights to freedom of expression, assembly, and association. (to the source) ??????

Three developing countries, Vanuatu, Fiji, and Samoa, propose making ecocide a punishable crime in the International Criminal Court, despite facing opposition and taking years to fully discuss. (to the source) ????

Cambodia's environment minister aims to enhance the country's green credentials by planting more trees, improving road infrastructure, reducing plastic waste, and attracting investors. (to the source) ????

Indonesia lost four times the size of Singapore's primary forest cover in 2023, according to a monitoring outfit. Conservation groups argue Indonesia's methods aren't accurate, and accurate data is needed to understand deforestation drivers. (to the source) ????

Colombia recorded the deadliest number of environmentalists and land rights defenders in 2023, with 79 killed, according to UK advocacy group Global Witness. This is the highest number recorded for a single country since 2012. The findings contradict President Gustavo Petro's promises for environmental justice. (to the source) ??????

Malaysia's top court ruled that NGOs can challenge the government's 20-year backdated degazettement of the severely degraded Bukit Cherakah forest reserve, a significant win for forest protection in the country. (to the source) ????

Indonesian residents are suing three pulpwood companies, BMH, BAP, and SBA Wood Industries, for causing toxic haze and contributing to climate change due to carbon-rich peat landscapes. The lawsuit is part of a growing trend in Indonesia. (to the source) ????

AI can drive decarbonisation by optimising energy consumption and accelerating renewable energy deployment. However, it requires balancing investment with carbon emissions. As AI deployment increases, managing its environmental impact becomes complex. An all-encompassing approach, including the use of renewable energy, is crucial. (to the source) ????

Bursa Malaysia, the first Asian stock exchange to have its emissions targets validated by the SBTi, will continue supporting carbon credit projects via its carbon exchange. (to the source) ????

Singapore plans to import 3.4 gigawatts of low-carbon electricity from Indonesia, a $20 billion agreement strengthening regional energy cooperation and contributing to decarbonisation efforts. The solar power plants developed through this partnership will be the largest in the world. (to the source) ????

According to the Global Methane Budget, human activity led to record high global methane emissions, reaching 1.923 parts per billion in 2023, 2.6 times higher than pre-industrial times and threatening the Paris Agreement's 1.5C global warming limit. (to the source) ????

Singapore's Temasek Foundation and Indonesian partners launched a community-based mangrove restoration programme in Banyuasin, aiming to sequester 180 tonnes of carbon dioxide annually and enhance crab harvests. (to the source) ????

China is developing new coal mines to produce 1.28 billion metric tons annually, with 35% under construction. A surge in production is expected in three to five years, contrasting with China's carbon neutrality targets. (to the source) ????

Climate change efforts stalled due to US oil production, political resistance, and global crises. A survey by Stanford University and MSCI Sustainability Institute found that most investors consider climate or carbon emissions in their investment decisions, but only 4% believe climate risks are reflected in current asset prices. (to the source) ?????

The Earth Commission's study suggests that a "safe and just space" could be created through a radical transformation of global politics, economics, and society, involving fairer resource distribution, phase-out of fossil fuels, and widespread adoption of sustainable technologies. (to the source) ?????

Italian scientists warn that the Marmolada glacier, the largest in the Dolomites, could melt completely by 2040 due to rising temperatures. The glacier lost 7-10 cm of depth daily and 70 hectares of its surface in the past five years. (to the source) ?????

India experienced a 30% reduction in new malaria cases and 34% fewer deaths in 2022 compared to 2021, despite global malaria cases increasing. The country aims to achieve malaria-free status by 2030, but still has the most cases in its South-East Asia region, with Mizoram experiencing increased cases. Studies show climate change may lead to more favourable conditions for mosquito breeding in vulnerable forested areas. (to the source) ?????

What are your takeaways for the week? What caught your eye?? What was surprising? Comment below, let's discuss sustainability. ??