Sustainability Progress Report #30

?? 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?

#policies

EU ministers urge the European Commission to establish a regulatory framework for cross-border carbon dioxide transport early in its mandate, as it is crucial for Europe's climate goals and achieving net-zero emissions by 2050. The EU framework must align with national efforts to establish incentivizing regulations. (to the source )

New York City Comptroller Brad Lander proposes expanding pension funds' fossil fuel investment exclusion policy to ban private market investments in midstream and downstream fossil fuel infrastructure, following divestment and 2023 exclusion. (to the source )

The Impact Disclosure Taskforce, led by JPMorgan and Natixis, released guidelines for companies and entities to measure and disclose progress on UN Sustainable Development Goals, promoting transparency in financial markets. (to the source )

The EU climate commissioner is pushing for a 90% emissions reduction by 2040, despite challenges in convincing the European Parliament and Hungary's proposal to delay minimum tax rates. (to the source )

The European Parliament approved the reform of Single European Sky rules. The reform will include binding targets and incentives for more efficient and environmentally friendly flights. The Commission will adopt EU performance targets on capacity, cost efficiency, climate, and environmental factors for air navigation services, reviewed every three years. (to the source )

Australia may tighten regulations on allowable levels of "forever chemicals" (PFAS) in drinking water, with draft guidelines recommending significant reductions. PFAS are synthetic chemicals used in products like nonstick cookware and stain-resistant fabrics, and their presence in drinking water is of concern due to potential long-term health effects. The guidelines propose stricter limits for PFOA, PFOS, PFHxS, and PFBS, based on evidence linking PFAS exposure to various health issues. (to the source )

The EUDR delay has negatively impacted farmers and companies, potentially reducing their competitive advantage. However, smallholder farmers benefit from the extra time to comply, allowing them to gather necessary information and receive training, allowing them to focus on harvesting cocoa and coffee, which is crucial for their incomes.? (to the source )

UK farmers are concerned over proposed changes to the Milk Regulations (FDOM24) which would allow them more flexibility in negotiating non-exclusive agreements and selling surplus milk to third parties. The changes would introduce a tiered pricing model, imposing bonuses and penalties for seasonal milk volumes and discounts on certain milk quantities, including exclusive contracts. Dairy producers and purchasers have until July 9, 2025, to ensure their contracts comply with the regulations. (to the source )

#trends

A Crossroads report highlights the shift of CSOs' focus from innovation to compliance, with 83% stating collaboration is crucial for sustainability objectives and 64% stating regulation allows strategic impact. Balancing compliance with innovation is a growing challenge. (to the source )

According to the EIB Group, 61% of European companies are focusing on climate mitigation and adaptation, investing in digital technologies, resilient supply chains, and innovation, despite challenges such as high energy costs and market fragmentation. (to the source )

The Sarawak conservation project, aimed at preserving Malaysia's last intact primary forest, was cancelled due to NGOs' interference and this raises concerns over the future of the Indigenous customary land, which is crucial for climate and forest protection. (to the source )

NGOs argue that biodiversity credits may replicate voluntary carbon market flaws, despite pioneers avoiding offsetting and secondary trading, allowing Indigenous communities to lead. (to the source )

Singapore's president believes that improving water disclosures should be a "low-hanging fruit" as more countries mandate climate reporting, emphasising the importance of "double materiality" and aligning with ISSB-aligned climate reporting. (to the source )

The SEC charged WisdomTree Asset Management with misstatements and failures in ESG-marketed funds, revealing that the firm invested in companies involved in fossil fuels and tobacco, despite claims otherwise, and imposed a cease-and-desist order, censure, and $4 million civil penalty. (to the source )

The International Chamber of Commerce (ICC) has launched the Principles for Sustainable Trade Finance (PSTF) at Sibos 2024, providing guidelines for sustainable trade finance products and addressing greenwashing risks. (to the source )

The private equity industry is integrating sustainability into its investment strategies, with 85% planning to increase focus in the next three years. The sector is also making progress in gender diversity and job creation, with 77% of PE-backed firms having at least one woman in the C-suite. (to the source )

Force for Good identified nine 'Big Ideas' to increase progress toward the SDGs from 66% to nearly 90% by the decade's end. These include climate transition frameworks, AI-enabled connectivity, and universal digital financial services. A mass roll-out, sponsored by governments, the private sector, or multilateral institutions, would have the potential to transform developing countries. (to the source )

The Global Biodiversity Framework's adoption saw a 43% increase in biodiversity data disclosures, with 33% of global stock market companies now reporting water data to CDP. This resulted in a 22% reduction in water use. Despite these positive developments, significant gaps remain, with fewer than 10% of companies assessing their dependency on biodiversity. (to the source )

A new study highlights a gap between governments' reliance on land and its role in climate mitigation, highlighting the Paris Agreement's focus on forests and land. Land-based climate change reduction efforts may indirectly reduce biodiversity losses but may exacerbate the biodiversity crisis. More transparency and consistency in pledges could help answer IPCC governance questions. (to the source )

The 2024 State of Soils in Europe report highlights significant soil degradation in the EU, emphasising the need for improved monitoring and legislation for sustainable management. (to the source )

The Natural History Museum's research indicates a faster decline in biodiversity within key protected areas, attributed to specific species and degradation, despite an increase in protected areas since Cop15. (to the source )

The study highlights the significant influence of pro-environmental attitudes on intentions to purchase sustainable clothing, with women showing higher intentions and men showing increased future sustainable clothing purchasing. (to the source )

#litigation_and_negotiation

The Clean Clothes Campaign launched an international campaign against 45 brands linked to suppliers who filed charges against 36 garment workers in Bangladesh, aiming to expose outstanding warrants and drop charges. (to the source )

The International Court of Justice (ICJ) is set to hear over 100 countries and organisations' opinions on climate change, determining financial liability and influencing sustainability and climate change-related laws. The ICJ was requested to issue an advisory opinion on the legal obligations of countries in preventing climate change, guiding future litigation, and legislative development. (to the source )

Verra defends policies on conflicts of interest after former board member Kenneth Newcombe is charged with fraud involving certified credits, potentially leading to 20 years in prison. Verra issued 148mn carbon credits in 2023, more than twice as many as the next largest registry, the Swiss-based Gold Standard. The registry has since cancelled more than 5mn credits. (to the source )

Over 100 professional women's footballers signed an open letter urging Fifa to drop Saudi Aramco as a sponsor, citing humanitarian and environmental concerns and suggesting a committee for future sponsorships. (to the source )

Building and Wood Workers' International (BWI) filed a complaint against Saudi Arabia ahead of FIFA 2034 World Cup, citing human rights violations against migrant workers and a failure to adhere to ILO conventions on forced labour, calling for an ILO investigation. (to the source )

The Commonwealth group of nations is set to hold a summit in Samoa, South Pacific, to discuss climate change and reparations for Britain's role in transatlantic slavery. Over half of the group's members are small, many of them low-lying islands at risk from rising sea levels. (to the source )

#labour_rights

The Philippines, a major supplier of minerals like nickel, faces violence against Indigenous people due to mining expansion, causing land and environmental conflicts in ancestral domains. The Legal Rights and Natural Resources Center reports mining expansion as the main driver. (to the source )

The European Trade Union Confederation (ETUC) has discovered seven EU countries have not implemented new EU minimum wage protections, despite an approaching deadline. The directive could benefit around 20 million workers, but only two EU countries have implemented it. (to the source )

Rivian Automotive Inc., a maker of $100,000 EVs, is experiencing safety violations, with workers suffering injuries such as a cracked skull, foot fracture, back laceration, and amputated finger. The company has only one factory and the alleged incidents have not been reported. (to the source )

The Roundtable on Sustainable Palm Oil (RSPO) ruled that Samsung's subsidiary, Inecda, violated its standards by failing to consult with a local Indigenous community in Sumatra, Indonesia, where it cleared forests for oil palm plantations. (to the source )

A Bangladeshi worker died at a construction site in Singapore's Balestier area after being struck by a precast concrete drain. The Ministry of Manpower launched an investigation, and lifting activities have been suspended. The construction company was asked to respond to the incident but did not answer. (to the source )

Namibia's health ministry reports a tenfold higher TB incidence among mine workers compared to the general population. The mining sector faces health risks like poor ventilation, hazardous dust exposure, malnutrition, and smoke. The new Mine Health and Safety Standard Operating Procedures aim to prevent, screen, and treat these diseases, but challenges remain. (to the source )

WIRED published an article on 20 September 2024, highlighting protests against Apple's sourcing of cobalt from the Congo and Gaza, as well as allegations of wrongful terminations of employees for supporting Palestinians. Apple was contacted to clarify its response to these allegations and to address human rights risks associated with its supply chain but did not respond. (to the source )

Transparentem, a US-based NGO, identified forced labour risks at nine Taiwanese textile manufacturers, including migrants from Vietnam, Thailand, Indonesia, and the Philippines, citing harsh living conditions and high recruitment fees. (to the source )

#green_claims

Big businesses aim to be "nature positive" by 2030, aiming to reverse biodiversity loss and increase surface under trees, species, and ecosystems. The distinction between nature positive and climate-related claims may not be clear, with some scientists and environmental groups concerned that companies and governments are branding the term without establishing definitions and metrics for accountability. (to the source )

#energy_transition

Azerbaijan's Socar plans to boost gas production from 37bn to 49bcm by 2033, investing 97% in 2023 oil and gas projects, and launching a green energy division. The report rated Azerbaijan's climate action plan as "critically insufficient" and accused Socar and Azerbaijan of human rights violations. (to the source )

Southeast Asia spent around US$130 billion on oil imports in 2023, nearly four times more than on clean energy investments, posing major economic and energy security risks without a faster renewables shift. (to the source )

PwC’s annual study shows 2023 saw the slowest decrease in carbon intensity in over a decade, despite a 14% increase in renewable energy capacity last year. (to the source )

The EU's five largest member countries spend €42 billion annually subsidising fossil-fuel company cars, with Italy, Germany, France, and Poland contributing the most. SUV subsidies are 15 billion euros, with drivers receiving an average tax benefit of €6,800. (to the source )

Singapore's EMA will co-fund carbon capture and storage feasibility studies for power generation and energy firms to achieve a net zero emissions target by 2050. (to the source )?

EU carbon permit prices are predicted to rise by 2027 due to supply reduction measures, including the Emissions Trading System (ETS), which requires manufacturers, power companies, and airlines to surrender carbon allowances. The EU's fit for 55 framework aims to reduce emissions by 55%. (to the source )?

Resources Recycling Group was established in China to recycle batteries from EVs and decommissioned wind and solar equipment. President Xi Jinping praised the move as a significant step towards green, low-carbon, and circular development. Meanwhile, China's renewable energy contribution has been hampered by trade barriers. (to the source )?

Southeast Asia needs to increase clean energy investments to $190 billion by 2035 to achieve its climate goals, according to the International Energy Agency. The region's coal-fired plant fleet needs to be reduced, and rapid economic expansions pose challenges for energy security and climate goals. (to the source )?

Turkey plans to require $108 billion in public and private investment to triple its wind and solar energy capacity to 120,000 MW by 2035. The ministry is working on changes to regulations and encouraging private sector participation. The ministry will allocate $28 billion for transmission infrastructure improvements. (to the source )?

Six Pacific island states and Caribbean nations are advocating for a carbon levy of $150/t of shipping emissions on large commercial vessels. The proposed levy would apply to ships transporting freight and passengers across oceans, not domestic fleets. The proposal could be the first of its kind to put a universal price on carbon. (to the source )?

#decarbonisation

Climeworks partnered with Morgan Stanley to remove 40,000 tons of CO2 from the air until 2037, supporting its green technology expansion. The deal will help accelerate Climeworks' expansion plans in the U.S., including building a direct air-capture hub in Louisiana called Project Cypress. The company plans to increase its carbon removal capacity with each new plant. (to the source )

Microsoft signed the largest marine CO2 removal deal with Ebb Carbon, committing to remove 350,000 tonnes of CO2 over 10 years. Ebb Carbon, established in 2020, uses an electrochemical ocean alkalinity enhancement method. (to the source )

Carbon Recycling International (CRI) partnered with Tianying Group to develop a large-scale E-methanol production project in Liaoyuan, marking China's first large-scale project using CRI's proprietary technology. The plant will convert carbon from biomass and renewable energy into E-methanol, a crucial green fuels market component. (to the source )

Unifuel, a California-based company, has raised $3 million to advance its projects in Texas, focusing on SAF production, which accounts for the majority of aviation emissions. The Flexiforming technology aims to reduce SAF production costs by up to 50% and carbon emissions by up to 75%. (to the source )

The European Commission approved a €128 million Swedish state aid to support SSAB's steel production decarbonization project, aiming to reduce Sweden's CO2 emissions by 7%. The grant will be made available through the EU's Just Transition Fund, promoting the European Green Deal and ending dependence on Russian fossil fuels. (to the source )

The UNEP's annual "emissions gap" report reveals a significant gap, highlighting that current policies and commitments fail to meet the Paris Agreement's goal of limiting global warming to below 2C and 1.5C. (to the source )

Germany approved plans for a €19 billion hydrogen network, aiming to replace fossil fuels with hydrogen by 2045. The 9,040-kilometre network will connect industrial hubs, including steel producers, and will be operational by 2032. (to the source )

#waste

Vietnam's Tay Bac waste facility in Ho Chi Minh City generates over 3,000 tonnes of rubbish daily. WtE plants, like Tam Sinh Nghia, can reduce waste volume by 90% and reduce methane emissions. However, lax regulations in Thailand and Indonesia raise health concerns. (to the source )

#outdoor

Outdoor brand Vaude is partnering with retailer Globetrotter to offer product repairs at nine locations in Germany, with more locations expected over the next year. The service will be extended through Transa in Switzerland and Bever in the Netherlands. The collaboration aims to extend the lifespan of outdoor products and reduce resource use. (to the source )

#apparel

The H&M Foundation revamped its Global Change Award (GCA) to promote fair climate solutions for the textile industry, awarding €200,000 to 10 winners annually. The award aims to bridge funding gaps for high-potential ideas and support early-stage innovators, focusing on sustainable materials, responsible production, mindful consumption, and wildcard solutions. (to the source )

H&M plans to phase out virgin down feathers in all products by 2025, replacing them with post-consumer recycled feathers and synthetic materials. (to the source )

The "One Denim" collection, a collaboration between Cone Denim, Kingpins, and Tonello, features ten versatile silhouettes from a single sustainable fabric, aiming to reduce fabric waste and showcase the versatility of one denim material in various garments. (to the source )

Lenzing, Kaihara Denim, and Roica partnered to create the Saisei collection, a premium stretch denim line crafted from recycled materials. The Ecovero fibres incorporate up to 20% post-consumer textile waste. The Rioca EF yarn reports 30% lower CO2 emissions. (to the source )

The textile sorting and recycling industry in Europe is facing a crisis due to an oversupply of used textiles and a drop in demand from traditional export markets. The industry is facing financial strain, warehouses becoming overwhelmed, and the risk of textile waste incineration. Textile associations urge the EU for swift action, including VAT reductions, tax introductions, and public-private partnerships. (to the source )

Primark and WRAP partnered to reduce textile waste and extend clothing's lifespan. The three-year partnership will expand Primark's donation schemes and address barriers to donating used clothes, with WRAP's Behaviour Change subsidiary advisory. (to the source )

Cascale introduced a new cotton LCA methodology for its Higg Materials Sustainability Index tool, aiming to provide more accurate and consistent environmental impacts assessment through standardised data collection. (to the source )

The US Cotton Trust Protocol's 2023/24 annual report shows record grower participation and environmental stewardship improvements, with enrolled acreage increasing 31% and enrollment up 35%, reaching 1,327 growers. (to the source )

#consumer_goods?

Climate change is causing anxiety among Gen Zs and millennials, leading to increased focus on environmental sustainability in personal, career, and consumer decisions. 72% believe environmental credentials and policies are important, and governments should play a bigger role. (to the source )

UK supermarkets and fast-food chains, including Tesco, Sainsbury's, KFC, and McDonald's, may be selling chicken fed with soya grown on illegally deforested land. A report calls for robust UK environmental law to end soya-driven deforestation in the chicken sector, highlighting the need for suppliers to avoid illegal deforestation. (to the source )

Lidl is expanding its plant-based range, Vemondo Plant!, following a 12% increase in demand. The Vemondo Plant! range launch comes as Lidl GB commits to doubling its plant-based sales over the next 12 months as part of its 2050 net-zero commitment. (to the source )

Swiss start-up Essento showcased its "entovegan" insect snack range at SIAL 2024, combining insect protein with plant-based proteins. The snack range includes five flavors and is sourced through focus groups. (to the source )

Arla Foods Ingredients has introduced three "upcycled" dairy concepts, utilising acid whey as a nutrient-rich ingredient. This approach reduces waste and increases brand appeal to climate-conscious consumers. (to the source )

#supply_chains

The Dutch Social & Labor Convergence Program released an updated toolkit to assist stakeholders in complying with new human rights due diligence legislation, including the EU's Corporate Sustainability Due Diligence Directive. (to the source )

Cascale and Open Supply Hub are collaborating to enhance transparency in global textile and garment supply chains, using Cascale's impact data tools and OS Hub's global supply chain map. (to the source )

#innovation

Mercedes-Benz opened a battery recycling plant in Kuppenheim, Germany, with a 96% recovery rate, aiming to create a "real circular economy" for electric vehicle batteries. The plant, part of a research project with German universities, covers all recycling steps. (to the source )

The European Commission awarded €4.8 billion in grants to 85 innovative net-zero projects in 18 European countries, aiming to reduce GHG emissions by 476 million tons over their first ten years. (to the source )

A Japanese research team developed a supercritical fluid dyeing process that uses supercritical carbon dioxide to decolourize polyester fabrics, remove dyes, reuse extracted dyes, and reduce waste. (to the source )

#climate_change

The European Commission is proposing amendments to three EU regulations to support Member States affected by climate-related disasters, allowing them to reprogramme €18 billion and introduce new measures.(to the source )

Scientists collaborating under the World Weather Attribution initiative predict that climate change will lead to more frequent floods in Africa's Sahel region, causing crop loss, dam bursts, and disrupting millions of lives. (to the source )

India's Supreme Court urged authorities to address deteriorating air quality in Delhi, a city with a "very poor" air quality index, due to illegal paddy stubble burning in neighbouring states. The court criticises selective action and requires compliance reports. (to the source )

A UN report predicts global warming of over 3 degrees Celsius by the end of the century due to current climate policies. The report also highlights a 1.3% increase in greenhouse gas emissions between 2022 and 2023. To prevent warming beyond 1.5 C, nations must commit to reducing emissions. (to the source )

Greece is experiencing a 90% drop in chestnut harvest due to extreme weather conditions, half the average over the past five years. This is the latest sign of climate change's impact on southern Europe, affecting cherry, apple, and walnut harvests. (to the source )

The Netherlands' climate policy adviser warns that its main 2030 climate goal of reducing CO2 emissions by 55% is unlikely to be achieved due to current policies, road taxes, solar panel subsidies, and offshore wind farm delays. (to the source )

Italy and central France are facing severe weather conditions, with storms and heavy rainfall expected until Tuesday. Emilia Romagna, Italy, has been severely hit, with over 160 millimeters of rain in Bologna. Central France has experienced widespread damage and power outages. (to the source )

Ghana purchased its first-ever sovereign drought insurance policy, providing financial relief to vulnerable communities and the agricultural sector, demonstrating the national commitment to climate-related risks. (to the source )

Global mean sea level has risen by 111mm since 1993, with the rate increasing from 2.1mm/year in 1993 to 4.5mm/year in 2023. Sea level has surpassed 30 years in length, providing scientists with a better opportunity to separate natural variability from forced changes driven by increasing greenhouse gases. (to the source )

Air pollution triggers infant immune responses, potentially leading to peanut allergies and long-term mental health impacts, according to a study by Murdoch Children's Research Institute and the University of Melbourne. (to the source )

What's your take on this? ??