Sustainability Progress Report #31

?? 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

The Roundtable on Sustainable Palm Oil (RSPO) is under scrutiny for a new standard, which NGOs argue could weaken forest protections against palm oil expansion. (to the source )

Better Cotton developed a standardised methodology for measuring environmental impact metrics from LCAs. The approach addresses the lack of standardised methods in the industry, including global warming potential, water scarcity, and eutrophication in cotton production. (to the source )

The European Union (EU) has increased tariffs on Chinese electric vehicles to 45.3% after unsuccessful negotiations. The EU argues that Chinese subsidies hurt competitiveness at home and that China's spare production capacity is twice the size of the EU markets. (to the source )

#trends

Papua New Guinea will not attend COP29 as a way to show support for all small island nations grappling with severe impacts of climate change and make a stance against bigger countries’ empty promises and inaction. (to the source )

UK experts advise companies on carbon credit insurance, which covers fraud, negligence, purchase protection, and buffer depletion. Understanding carbon insurance is crucial for companies operating in compliance carbon markets, such as aviation, and in voluntary carbon markets. The UK's carbon credit insurance market varies, with 51% of credit buyers holding insurance, while others believe it's lower. (to the source )

The EU pledged to double external funding for biodiversity from 2021 to 2027 to €7 billion, launching new initiatives worth €160 million to support partner countries and safeguard global biodiversity.(to the source )

The EPA rebounded from staff exits and budget cuts during the Trump administration, now implementing stricter regulations and banning certain toxic chemicals. With the upcoming election, the EPA faces increased uncertainty, particularly after issuing the first-ever limits on PFAS in drinking water, which chemical and manufacturing groups argue exceeds its authority. (to the source )

Since January 2024, the Taskforce on Nature-related Financial Disclosures (TNFD) has seen a 57% increase in adoption, with over 502 companies and financial institutions aligning their risk management and reporting with TNFD recommendations. (to the source )

The 2022 adoption of the Global Biodiversity Framework resulted in a 43% increase in biodiversity data disclosures, 33% of global stock market companies reporting water data, and a 22% reduction in water use. (to the source )

China instructed automakers to halt investments in European countries that support extra tariffs on Chinese-built EVs, potentially dividing Europe. The new EU tariffs, which came into effect on Wednesday, aim to avoid a sharp drop in EV exports to the key market, which accounted for over 40% of EVs shipped from China in 2023. (to the source )

Industry experts in Colombia discussed $78bn investment for next-gen solutions and reducing forest fibre reliance in sustainable paper, packaging, and textiles at COP16. (to the source )

Unprecedented levels of mercury were found in 148 tins of canned tuna sold in the EU, according to lab tests by environmental NGO Bloom, despite claims from international organisations and fisheries associations. (to the source )

Civil society groups are urging for free, prior, and informed consent for Indigenous lands use in Malaysia's climate change bill, as public consultation ends next Monday. They also urge for inclusion of local communities in renewable energy project discussions. (to the source )

Experts estimate $700bn a year is needed to restore nature, but funding source remains unknown. (to the source )

#litigation_and_negotiation

China's SAIC Motor plans to challenge 45% tariffs on electric vehicles imposed by the European Commission, escalating global trade tensions following a WTO lawsuit and new tariffs. (to the source )

The North Dakota Landowners Association is suing the state over unconstitutional laws regulating CO2 underground storage, which could impact energy companies pursuing such projects. (to the source )

Los Angeles County sues PepsiCo and Coca-Cola for polluting the county with plastic bottles and misleading the public about their environmental impact. The Democratic-governed county claims the pollution is a public nuisance and the companies must pay penalties for unfair business practices. (to the source )

Brazil's environmental protection agency IBAMA imposed 365 million reais ($64 million) in fines on cattle ranches and meat packers for raising or buying cattle on illegally deforested land in the Amazon. The enforcement operation aims to curb deforestation and monitor the chain involved. (to the source )

The Australasian Centre for Corporate Responsibility launched a greenwashing case against Santos, accusing the company of misleading its shareholders about its net zero emissions reduction and net zero goals. (to the source )

#labour_rights

The Constitutional Court in Indonesia partially accepted a workers union petition for changes to labour rules, including sectoral minimum wages, but rejected requests for severance benefits and formula changes for annual wage increases. (to the source )

IKEA Germany and the Bundestag parliament have announced a €6 million contribution to a German government fund to compensate former East German prisoners for forced labour. The fund, which has yet to be approved by the German parliament, is seen as a formality. (to the source )

Volkswagen plans to close three German factories, lay off thousands of staff, and downsize plants, marking the first in the company's 87-year history. Negotiations with labour unions face resistance. The company plans to move production abroad or outsource. (to the source )

#reporting

The ESMA released its 2024 Priorities Statement, emphasising sustainability reporting under the CSRD. The statement emphasises double materiality assessments, detailed sustainability disclosures, and taxonomy alignment for corporate reporting. Statement emphasises need for alignment between financial and sustainability reports, requiring companies to assess sustainability impacts and ensure financial statements reflect value chain risks and opportunities. (to the source )

EY's survey shows 55% of CFOs fear sustainability reporting is perceived as greenwashing due to insufficient due diligence. The survey also raises doubts about companies' ability to meet sustainability targets, with 96% worried about nonfinancial data's suitability for decision-making. (to the source )

Deutsche Bank and DZ Bank have been appointed as joint ESG coordinators for the update of Germany's Green Bond Framework, set to be finalised in 2025, focusing on environmental and sustainable finance objectives, green securities management, and expenditure evaluation. (to the source )

A survey shows a growing demand for ESG-focused legal expertise among law firms and corporate legal departments. This trend is attributable to regulatory demands, compliance complexity, and ESG data quality issues. However, only 41% of legal departments and 29% of firms are prepared. (to the source )

US companies are increasing reporting on environmental and social issues, despite conservative politicians' pressure, highlighting the importance of ESG issues in response to global warming and changing workforce demographics. (to the source )

#energy_transition

Denmark's Orsted is set to sell minority stakes in four UK offshore wind farms to a Canadian asset manager for a deal valued at $2.27 billion. The move aims to boost Orsted's financial position. (to the source )

Volvo, the market leader in long-haul electric trucks, achieved a 24 percent increase in deliveries of fully electric vehicles in the first nine months of 2024, compared to a 4% decrease in the same period last year. The company's top management is committed to net zero by 2040. (to the source )

The US is on the brink of a lithium boom, with the Biden administration approving the Rhyolite Ridge mine and a $2.6 billion loan to Thacker Pass. The US is aiming to reduce China's control over lithium-ion batteries for electric vehicles and aiming for EVs to account for 50% of car sales by 2030. (to the source )

General Motors CEO criticises the oversaturation of the EV market in China, arguing that competition is not sustainable. She highlights the regulatory-driven adoption and EU automakers' struggles in the market, highlighting the need for sustainable solutions. (to the source )

Germany plans to decrease solar producer subsidies due to rising costs and an oversupply of renewable power. The draft law will lower the threshold for direct marketing, potentially slowing solar expansion on smaller commercial roofs. (to the source )

China's steel industry is undergoing a transformation towards carbon reduction, with over 140 companies achieving ultra-low emission levels and implementing low carbon emissions steel Group standards. (to the source )

Deutsche Welle reports on an anti-nuclear protest in Lingen, Germany, over Russian involvement in a local plant's fuel cell production. (to the source )

The European gas industry has withdrawn from a Just Transition European Framework Agreement, walking back on its pledge to provide retraining and job protection for workers in preparation for the shift to cleaner energy. (to the source )

Ammonia, a carbon-free, zero-emission fuel, is set to enter service in 2026, aiming to reduce global emissions by reducing emissions. However, it still faces safety challenges as a shipping fuel compared to LNG, methanol, and biofuel and the adoption might go slower than planned. (to the source )

Wood Mackenzie's report suggests that global investment in green energy transition needs to double to $3.5 trillion annually to achieve net zero emissions by 2050, citing energy security concerns and tariffs and trade barriers. Only a few major countries and companies are on track. (to the source )

#decarbonisation

Morgan Stanley revised its 2030 climate targets, setting sector-specific emissions reductions within a 1.5-1.7°C warming limit. This is the bank's first major climate adjustment since 2021 when it was aiming to meet the 1.5°C target of the Paris Agreement. The update includes new goals for aviation, chemicals, and mining, and a "physical intensity" metric for emissions tracking. (to the source )

The European Commission allocated €4.8 billion from emissions trading revenues to fund 85 net-zero projects in 18 countries, aiming to reduce emissions by 476 million tonnes over ten years. The projects support clean technologies in energy-intensive industries, renewable energy, energy storage, and carbon management. (to the source )

Maersk partnered with Chinese supplier Longi Green Energy to purchase wood-based bio-methanol, aiming to increase fuel supply for its growing fleet by 2027, despite high costs remaining a barrier to the adoption of lower-emission fuels. (to the source )

CDR.fyi is conducting a survey to determine the current market pricing for CO2 removal (CDR). The survey, open to both buyers and suppliers, tracks 15 CDR methods and aims to understand buyer and supplier prices, sectors' interest, and demand signals for 2025 and 2030. (to the source )

The Grantham Research Institute and AlliedOffsets created a tool called TRACEcdr to visualise CO2 removal projects' monitoring, reporting, and verification ecosystems. The tool highlights land-based biological methods, the development of CDR protocols, and compliance markets, with just under 60% of credits used in voluntary carbon markets. (to the source )

The US Department of Energy's Office of Clean Energy is launching a Request for Information (RFI) to help direct air capture technology developers acquire investment capital. The RFI is part of the agenda that aims to identify ways to enhance commercialization efforts for direct air capture technology. (to the source )

The UK government is set to announce plans to cut emissions by 2035 under the Paris Agreement, aiming to reduce temperature rises to 1.5C. The Committee on Climate Change recommends a target of at least 81% reduction by 2035. The UK is required to submit new Nationally Determined Contributions every five years. (to the source )

Over 60 climate change scientists deemed carbon offsets used by corporations to reduce GHG emissions ineffective and hindering the energy transition. A pledge signed by scientists from nine countries, including the UK, the US, and Australia, emphasised the importance of "real zero" as the only path to prevent further climate impacts. (to the source )?

Saudi Arabia's Energy Minister pledged to maintain crude capacity at 12.3 million barrels/day, stating that the country will monetize every molecule of energy it has, alongside pursuing climate aims and emission reduction. This comes ahead of an expected announcement about a carbon credit exchange involving the kingdom's sovereign wealth fund. (to the source )

#waste_pollution

Dow and Ambipar are partnering to boost Brazil's polyethylene recycling from 2,000 to 60,000 tons annually by 2030, aiming to create Brazil's first integrated recycling centre. (to the source )

Southwest Airlines introduced bamboo cups and wood stir sticks to replace single-use plastic on flights, aiming to reduce plastic usage by over 1.5 million pounds annually, in line with its sustainability strategy, Nonstop to Net Zero. (to the source )

Mercedes-Benz opened its own battery recycling plant in Germany, aiming to process and recycle enough materials to produce over 50,000 new battery modules per year. The facility, funded by Germany's Federal Ministry for Economic Affairs and Climate Action, will study the entire process chain for battery recycling and be Europe's first using a mechanical-hydrometallurgical process. (to the source )

Environmental organisations urge the EU to revise the WEEE Directive to address Europe's e-waste crisis, driven by a 98% increase in electronic devices between 2013 and 2022. (to the source )

Belgium achieved a plastic packaging recycling rate of 54% in 2022, ranking second among EU countries, behind Slovakia. The EU's recycling rate reached 41%, slightly improving from 38% in 2012, despite increased packaging production. (to the source )

Malaysia remains the world's second-largest importer of plastic waste from the EU, despite government efforts to prevent it from becoming a global dumping ground. The EU exported 8.5 million tons of paper, plastic, and glass in 2023. (to the source )

The European Chemicals Agency found hazardous substances in 6% of inspected cosmetic products, with banned substances found in 285 out of 4,500 products checked in 13 member states. (to the source )

#outdoor

French bio recycling company Carbios and consortium partners On, Patagonia, Puma, Salomon, and PVH Corp produced the first enzymatically recycled polyester garment from 100% textile waste. The white T-shirt is comparable to oil-based virgin polyester. (to the source )

Spinnova received a €12.7 million loan from Business Finland to develop its fibre production technology. The project focuses on process efficiency, fibre recipe development, and automation. (to the source )

Swiss clothing collector Tell-Tex plans to build a 20,000-ton textile recycling centre by 2026, with consultancy support from Rematters Textile Recycling Solutions. The centre will use automated sorting, accessory removal, and textile-to-fibre recycling, making it the first of its kind in Switzerland. (to the source )

Finnish start-up Untavia developed a new solution to preserve and potentially increase the fill power of recycled down. The company, founded six months ago, uses supercritical carbon dioxide to process down + feathers from used bedding, causing less friction and potentially improving the fill power of the natural material. (to the source )

French research centre CETIA is developing automated systems for textile and leather goods dismantling, aiming to make recycling in Europe more efficient and economically viable. The machines, such as TRACE and Reshoes, automate the removal of disruptors. (to the source )

Arc'teryx collaborates with Ambercycle to use 'Cycora' regenerated polyester to reduce carbon emissions and meet circularity targets, using enzyme-based recycling to separate polyester-blended textile waste. (to the source )

#apparel

At its annual conference, the Textile Exchange publicly introduced its Materials Matter Standard, a new benchmark for sustainable materials production. The standard supports brands and manufacturers in meeting climate and nature targets, aligning with legislation and consumer expectations. (to the source )

The European Economic and Social Committee (EESC) urges the EU to prioritise recycling and recovery of raw materials to protect the textile recycling industry and reduce dependence on imported raw materials. (to the source )

#consumer_goods?

Amazon eliminated over 2 million pounds of packaging over the past decade, but still uses 85,916 tons of single-use plastic annually. To change that, the company is testing durability and processing times for reusable packaging from startups Hipli and Re-zip. The boxes and parcels will be used on approximately 100,000 orders to e-commerce customers in France, Germany, the Netherlands, Belgium, Luxembourg, and Austria. (to the source )

Corporate Accountability Lab and partners filed a grievance with the Ghana Cocoa Board-COCOBOD on behalf of 30 cocoa farmers, urging for changes to improve farmers' livelihoods and combat climate change. They urge COCOBOD to implement changes such as increasing farm gate prices, addressing deforestation, regulating pesticide use, and requiring companies to implement legitimate Child Labour Monitoring and Remediation Systems. (to the source )

#supply_chains

Pharmaceutical and agricultural companies oppose a proposed levy on returns from using genetic data from nature. Negotiators at UN COP16 biodiversity summit debate 1% retail value levy, an alternative proposal allowing a smaller percentage of annual sales. (to the source )

Supply chains are under stress due to geopolitical tension, labour disruption, and natural disasters. Companies use risk management tools to gain market advantage, but implementation can be costly. Despite the challenges, investing in supply chain resilience has seen revenue growth of 23% from 2018 to 2023. (to the source )

#innovation

Gucci, GSK, and Holcim are the first companies to adopt science-based targets that aim for nature conservation, focusing on land protection and reducing freshwater usage, amid declining wildlife populations. (to the source )

#climate_change

Half of the US is experiencing its driest October, with over 100 long-term weather stations in 26 states experiencing their driest October ON RECORD. 93% of the continental US is experiencing below-average rain, with cities such as Washington forecasting 27°C on Halloween. (to the source )

The significant environmental crisis in Antarctica and its Southern Ocean is troubling as rising temperatures increase sea levels and affect coastal areas. The Antarctic Treaty System has made little progress in protecting the region, highlighting its economic importance. (to the source )

Valencia, Spain, experienced a devastating natural storm this week, resulting in a yellow storm warning. The storm, causing 155 deaths, is considered the worst in Western Europe since 1987. (to the source )

Tropical storm Trami in the Philippines left at least 130 dead and 41 missing, with many areas still isolated and in need of rescue. The country is grappling with climate change, with a 21% increase in tropical cyclones and significant rainfall increases since 2000. (to the source )

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