Sustainability Progress Report #32

?? 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 proposed delay of a EU deforestation law is causing uncertainty for companies, producers, and small farmers.? The delay could jeopardise all the work done in a year, and companies are concerned about technical challenges and legal and trade-related issues. (to the source )

The EU’s planned implementation of CBAM to tax carbon-intensive imports, aims to help domestic companies achieve net-zero emissions by 2050. It is also expected to generate €1.5bn in revenue in 2028. Critics argue it would lead to economic protectionism, trade harm, or exacerbate inequalities.? (to the source )

Brussels is retaining its plans for curbs on combustion engines in the EU from 2035, despite pressure from the car industry to reduce the rules. The law has faced criticism from European carmakers due to electric vehicle sales and competition from Chinese manufacturers. (to the source )

The Council approved a revised EU directive on urban wastewater treatment, expanding its scope to smaller agglomerations, covering more pollutants, and contributing to energy neutrality. By 2035, states must remove biodegradable organic matter, mandatory tertiary treatment of nitrogen and phosphorus, and quaternary treatment is planned to be introduced by 2045. (to the source )

The Council amended its regulation on European environmental economic accounts, expanding its scope to include forest, ecosystem, and environmental subsidies accounts. The regulation includes six modules and introduces a statistical data portal for climate change mitigation investments. (to the source )

UK’s Labour MPs called for the UK government to introduce legislation similar to the US Uyghur Forced Labour Prevention Act. (to the source )

The Canadian Government is conducting consultations on measures to combat modern slavery in the supply chain of Canadian businesses, including due diligence requirements for goods at higher risk of forced labour, cost-recovery model changes, and strengthening legislative and regulatory authorities. (to the source )

Canada proposed a draft regulation to cap GHG emissions in the oil and gas sector and introduce a new emissions allowance trading system. The regulation aims to reduce pollution by over a third and allow for continued production growth. The cap will apply to upstream facilities, accounting for 85% of emissions. (to the source )

Following California, Washington state voters upheld the Climate Commitment Act, forcing companies to cut carbon emissions and raise billions for climate change programs. The law requires polluters to pay for the right to do so by buying allowances. (to the source )

A California judge allowed the state's carbon emissions disclosure requirements to proceed, allowing the judge to decide if the reporting regime violates First Amendment rights against compelled speech. The US Chamber of Commerce sued California to overturn two laws requiring large businesses to disclose detailed information on carbon emissions and climate-related risks. (to the source )

The SEC halted the implementation of its climate disclosure rule, which was supposed to require public companies to disclose climate risks and emissions figures. The agency wants to avoid regulatory uncertainty and focus on defending the rule against legal challenges, including those from supply chains and consumers. (to the source )

#trends

TotalEnergies predicts global oil demand will peak after 2030 in two energy transition scenarios, not aligning with the Paris-aligned scenario that requires oil demand to peak before 2030. The company explains this prediction is impacted by rising population, slow investments, and slow electric vehicle sales. (to the source )

The UN COP16 biodiversity summit agreed on a new fund for pharmaceutical and other companies to contribute 0.1% of their revenue or profit to genetic data use. However, no agreement was reached on global finance for nature,? nor monitoring and assessment mechanisms that would hold nations accountable on their official pledges. (to the source )

The EIOPA recommends the European Commission increase capital requirements for fossil fuel assets to mitigate transition risks. The report covers market risk, climate risk-related prevention measures, and social risks. It suggests raising stocks and bonds capital requirements by up to 17% and 40%, respectively. (to the source )

The EU proposed delaying the implementation of its new certification for small palm farms, causing confusion and claims of inequity. The Malaysian government opposed new regulations, arguing they would impact smallholder farmers. The EU agreed in May 2024 that Malaysia's sustainable certification standard would meet EUDR standards. (to the source )

The Textiles Coalition identified significant policy priorities for the EU to reduce the industry's sustainability impacts. (to the source )

Salmon returned to Oregon's Klamath Basin for the first time in over a century, following the largest dam removal project in U.S. history. The Chinook salmon likely travelled 230 miles from the Pacific Ocean after four dams were removed. (to the source )

Climate-tech startups face funding challenges due to increased AI capital. (to the source )

Germany's industrial giants are leaving due to high energy costs and uncertain transition to cleaner fuels, with the ruling coalition's dissolution and looming snap election worsening the situation. (to the source )

Canada's Trudeau government faces criticism for its stance on energy and climate change, with oil-rich provinces like Alberta criticising federal efforts to slow emissions. Canada's updated plan proposes a 35% reduction in GHG emissions, slightly less than the expected 38% cut by 2030. (to the source )

Data center outsourcing market growth, worth $200 billion, poses ESG risk. ESG leaders must gain visibility by auditing providers, establishing long-term agreements, and aligning with ESG values. (to the source )

Winemakers in south-west England faced harsh conditions, including heavy rain and lack of sunlight, leading to sparse fruit and rotting grapelets during harvest. (to the source )

The UN warns of a catastrophic climate breakdown and ecosystem collapse due to rising global temperatures, with the Amazon rainforest and Greenland ice sheet at risk. The UN warns governments are not cutting emissions enough to limit warming. (to the source )

At the Cop16 biodiversity summit, Colombian leaders discussed ecological breakdown, climate change, and nature's role in limiting damage from global heating, but failed to include fossil fuel phase-out. (to the source )

The European Union's space programme predicts 2024 to be the hottest year on record, with temperatures potentially exceeding 1.5C higher than before the Industrial Revolution. (to the source )

The Potsdam Institute and University of Potsdam report that 30% of 1,500 global regions have achieved economic growth while reducing carbon emissions, but the decoupling pace isn't fast enough. (to the source )

#reporting

Irish businesses are enhancing their sustainability efforts, with 81% reporting increased focus over the past year, recognizing ESG efforts as crucial for financial growth and resilience. (to the source )

RSM International reports 46% of Latin American companies lack formal sustainability policies, with challenges like C-suite disconnect and training. Chile, Brazil, and Mexico lead in ESG maturity. (to the source )

#litigation_and_negotiation

The UK's Competition and Markets Authority closed an investigation into Unilever's environmental claims, citing concerns overstated by the company. The probe focused on vague language, exaggerated ingredients, single aspects, and claims about product recyclability. The CMA praised Unilever's compliance with information requests and robust processes. (to the source )

Los Angeles County is suing Coca-Cola and PepsiCo for misleading consumers about the recyclability of single-use beverage bottles, despite U.S. recycling rates being below 10%. The lawsuit seeks a court order to stop unfair practices, restitution, and civil penalties of $2,500 for each violation. California recycled 71% of bottles in 2023. (to the source )

#human_and_labour_rights

European associations call for a comprehensive competitiveness assessment to support businesses, particularly SMEs, and identify areas for simplification and burden reduction. The European Commission should provide horizontal oversight, align internal procedures, and ensure consistency between laws to support Europe's competitiveness and Single Market functioning. (to the source )

The fashion industry is utilising AI to enhance production and reduce environmental impact, while also threatening 75 million jobs in the labour-intensive sector. (to the source )

Germany's new Self-Determination Act allows 18+ individuals to change official records, alter names and genders, or remove gender markers. Parents can approve minors, while younger children can seek legal recourse. This historic reform is significant. (to the source )

38 Pará indigenous and community organisations criticised the government's lack of consultation on an Amazon rainforest carbon offset agreement with two multinational companies, Amazon and Walmart Foundation. (to the source )

Temu and Shein were criticised for their lack of transparency and human rights issues. Temu's score of 0 indicates a lack of transparency in the fashion industry. Shein, while slightly higher, falls behind in addressing core human rights issues and extreme overtime in their supply chains. (to the source )

British lawmakers may question Shein executives on workers' rights in January, ahead of a possible London listing, as the House of Commons' Business and Trade Committee examines the Labour government's employment rights bill. (to the source )

#energy_transition

Engie partnered with Meta to supply 260 MW of renewable energy from its solar project in Texas, contributing to Meta's renewable energy procurement of over 12 GW. The deal aims to help Meta meet its energy needs and contribute to the clean energy transition. (to the source )

H&M Group signed a virtual power purchase agreement with solar project developer Lightsource bp, enabling the construction of renewable energy infrastructure in Texas. (to the source )

Volvo Cars reported a 3% YoY sales increase in October, primarily due to a surge in fully electric and plug-in hybrid models in Europe. Sales in Europe increased by 21% to 30,167 cars compared to the same period last year. Sales of fully electric and hybrid models accounted for 48% of sales. (to the source )

Chinese automaker BYD is expanding into Latin America that is slowly becoming the largest overseas market for EVs due to tariffs. Brazil is an attractive market for electric batteries. (to the source )

US regulators blocked a plant from providing power to an Amazon data centre, causing a drop in nuclear-power stocks and potentially impacting grid reliability and consumer costs. (to the source )

Meta plans to build an AI data centre in the US using nuclear power were halted due to the discovery of a rare bee species. (to the source )

Fears of a growing tariff war between China and major exporting nations are keeping diplomacy between the EU and China alive, despite stalling trade talks over EVs. European negotiators are investing in a longer game to stop the escalating trade conflict, while some EU member states are using the dispute to strengthen bilateral ties and attract investment from China. Despite little progress, engagement remains a priority. (to the source )

Chinese EV manufacturers in Europe lost ground for a third consecutive month due to higher import tariffs, with a 8.5% share of EV deliveries in September. The biggest loser is MG, which drew the highest EU tariffs. (to the source )

Albemarle Corp., the world's largest lithium miner, is implementing cost-saving measures, including layoffs, to save over $1 billion from falling lithium prices. The company is also cutting 2025 capital expenses by up to $900 million to adapt to lithium market conditions. (to the source )

The UAE plans to invest AED200 billion to boost clean energy capacity and achieve its 2050 climate goals. The country's largest oil producer, ADNOC, committed $30 billion to launch a climate investment platform, and its "Energy Strategy 2050" aims to triple renewable energy share by 2030. (to the source )

Google Meta and energy companies are launching DCFlex to test technologies to reduce data centre strain on the US electricity grid. The initiative aims to build five to 10 demonstration hubs by 2025, explore grid integration, and transition backup equipment to renewable assets. It plans to publish best practices and resources. (to the source )

#decarbonisation

Microsoft plans to reduce its data centers' carbon footprint using cross-laminated timber as a replacement for steel and concrete. The company is investing in low-carbon building materials technologies and developers through the Microsoft Climate Innovation Fund. (to the source )

Queenstown, New Zealand, aims to become the first tourist destination with a carbon-zero visitor economy by 2030. The plan involves an electric gondola or hydro-powered ferry across Lake Wakatipu, high-speed rides on Lake Wakatipu, and whitewater rapids along the Shotover River. (to the source )

The Czech Republic and Italy will collaborate to prevent heavy penalties for carmakers in the EU due to tougher CO2 emission rules, which will lower average emissions from new vehicle sales. (to the source )

Google signed contracts to bring 275 megawatts of solar and other "carbon-free" electricity online to support its Asia-Pacific data center portfolio. The deals include small-scale solar projects in Japan, a biomass power plant in Singapore, and new solar and wind capacity in Australia and India. (to the source )

Carbon Direct's report on the voluntary carbon market highlights three underappreciated trends: oversupply, scarce high-quality carbon removals, and a lag behind the Paris Agreement. Demand for nature-based carbon removal is projected to grow by 50% this year. (to the source )

China's carbon-neutral products face criticism for offsetting. The EU has banned certain words in carbon certification and is exploring labelling. The Carbon Trust replaced a carbon neutrality label with a carbon footprint label in 2023. (to the source )

The Green Climate Fund introduced a new policy for REDD+ results-based payments to support forest finance. It raised payment rates by 60% to $8 per ton aiming to support eligible countries, particularly Small Island Developing States and Least Developed Countries. (to the source )

A study revealed that private jets contribute 1.8% of aviation's carbon emissions, with the US having the highest number. Wealthy individuals released 17 million tonnes of CO2 in 2023. (to the source )

The European Commission reported a 8.3% decrease in net GHG emissions in 2023, with renewable energy accounting for 45% of EU electricity. This shift led to a 24% reduction in emissions from electricity production and heating, and a 16.5% decrease in emissions from power and industrial installations. (to the source )

The Australian Government allocated $2.6m to Woolmark's Australian Wool Industry Insetting Programme, a project aimed at reducing textile supply chain emissions and promoting sustainable practices on 65m hectares of Australian wool production land. (to the source )

Researchers from the University of Colorado, Boulder found that microbes, including wetlands and livestock, are responsible for over 90% of global methane emissions since 2020, highlighting the need for reducing fossil fuels to mitigate climate change. (to the source )

The EU is expected to spend 39 billion euros annually to achieve net zero transport sector targets by 2050, requiring a coordinated industrial policy and green technologies. This is slightly higher than the bloc's annual fossil-fuel subsidies, and comes amid declining electric car demand. (to the source )

Bentley Motors plans to continue selling fossil fuel cars until 2035, five years later than initially planned. The luxury carmaker will unveil its first electric SUV in 2026, aiming to offer fully electric cars by 2035. (to the source )

#waste_pollution

New York's lawsuit against PepsiCo for single-use plastic packaging has been dismissed. (to the source )

Plastic pollution is causing climate change, biodiversity loss, ocean acidification, and harm to ecosystems and human health. Progress towards a global treaty to cut pollution has been hindered by the plastic production industry. The scientists urge UN talks to focus on the full life pathway of plastic, from extraction to use, and its environmental effects. (to the source )

The Intergovernmental Negotiating Committee is set to finalise a five-year treaty to address plastic pollution, aiming to reduce production, improve waste management, eliminate polluting products, design reusable plastics, and finance cleanups, with disagreements on banned chemicals and financing. (to the source )

Malaysia is the world's second-largest importer of plastic waste from the EU. The EU agreed to ban plastic waste exports to countries outside the OECD, including Malaysia, starting in mid-2026. Critics argue that recycling alone is insufficient, as much waste ends up in landfills or is incinerated, leading to pollution and greenhouse gas emissions. (to the source )

22 CEOs from companies such as Decathlon, IKEA, Tomra, and Terracycle signed an open letter to heads of state ahead of the final round of negotiations in Busan for a legally binding treaty to end plastic pollution. The letter calls on the UN Environment Programme's intergovernmental negotiating committee to address the crisis. (to the source )

Fashion for Good launched a free online tool mapping global textile waste hotspots. (to the source )

Green Theme Technologies secured $6 million in funding to scale up its waterless textile treatment technology, Empel, a PFAS-free alternative to conventional textile treatments. (to the source )

Goodwill Industries International, Reju, and WM are collaborating to enhance North American textile recycling efforts through a multi-year project involving collection, sorting, reuse, and recycling of discarded textiles. (to the source )

#outdoor

Patagonia incorporated Trove's Resale Plugin into its e-commerce platform, integrating pre-owned items resale in their offering. (to the source )

The US Cotton Trust Protocol, a voluntary sustainability program, has seen a 31% increase in acreage and higher yields, and is preparing a new membership model for 2025. (to the source )

Rieter and Arise are partnering to establish 500,000 tonnes of cotton processing capacity in Africa, under the Africa Textile Renaissance Plan, with $5 billion in financing, aiming to create 500,000 jobs, reduce imports, and boost exports. (to the source )

ASICS introduced Neocurve, a shoe crafted from reclaimed materials, promoting recycling and product circularity. (to the source )

Teijin Frontier introduces Octair, an insulation fibre for apparel, that uses short-cut polyester fibre Octa SF. Octair could meet demand for alternatives to natural feathers amid declining production volumes and rising costs. (to the source )

Lycra plans to transition 20-25% of its global production to bio-derived Lycra EcoMade yarn, consisting 70% industrial corn, to offer consistency and reliability to the industry. The product shows a 44% lower carbon footprint compared to conventional Lycra yarns. (to the source )

#apparel

Your next t-shirt might be lab-grown. Galy, a climate tech start-up, employs cellular agriculture to create "cotton" that needs 99% less water, 97% less land, and 77% less CO2 than conventional cotton. The clothing giants H&M and Inditex are among the most recent Series B investors in the company. (to the source )

ASOS and Hirestreet launched a subscription service, offering subscribers five items per month for ￡75, from a selection of 20,000 products. The service aims to cater to the UK rental subscription market, which has been slower to adopt this model. (to the source )

Belgian researchers, funded by the EU, developed an online tool called True Cost Calculator (TCC) to calculate environmental and social costs of garments. (to the source )

Research from the University of Plymouth suggests bio-based fibres like viscose may pose a greater environmental threat than conventional plastics, urging thorough testing before use in textiles and products. (to the source )

Animal welfare campaigners accuse the Australian wool industry of breaking a promise to end mulesing, urging politicians to ban the controversial process by the end of the decade. (to the source )

The Global Fashion Agenda (GFA) report highlights economic pressures as a challenge for companies prioritising sustainability efforts, advocating for balanced integration of sustainability in fashion strategies for COP29. (to the source )

#consumer_goods?

Research on genetic diversity in cheesemaking moulds has raised concerns about the future of beloved cheeses like Brie and Camembert, highlighting the need for adaptation and evolution. (to the source )

Hershey is collaborating with cocoa-producing cooperatives to improve cocoa supply, promote nutrition, and protect the environment in West Africa's Ivory Coast through the "Cocoa For Good" program. (to the source )

Samsonite's new strategy focuses on reducing Scope 3 emissions by 52% per unit of gross profit, increasing recycled content in products, and maintaining 100% renewable electricity. (to the source )

Global hunger decreases over 50 years, but fossil fuel use and supply chain emissions continue. Investments and emerging technologies are needed to reduce food waste and improve agriculture. Food insecurity is primarily driven by politics, conflict, economic shocks, and weather extremes. (to the source )

#supply_chains

Global beverage companies, including Coca-Cola, Guinness, Johnny Walker, and Svedka Vodka, formed the REfresh Alliance to promote renewable energy transition in their supply chains. (to the source )

#innovation

New research suggests that regrowing pastures where cattle graze could significantly lower greenhouse gas emissions. Reducing livestock production by as little as 13% in some areas could remove 125 billion tons of C02 from the atmosphere, equivalent to global fossil fuel emissions over the last three years. (to the source )

Australian recycling specialist Blocktexx was awarded the Manufacturing Innovation Award for its innovative chemical recycling process for separating poly cotton blends via hydrolysis. The process can yield 93% polyester and it is being tested with a consortium of mills and retailers. (to the source )

Oxford PV is enhancing efficiency in traditional solar panels with perovskite, a crystal structure that enhances utility and performance, achieving a world-record 29.5% efficiency in 2020. (to the source )

BASF and Acies Bio partnered to streamline fatty alcohol production using methanol, using OneCarbonBio technology to promote net-zero production of specialty and industrial chemicals. (to the source )

Researchers from Singapore, the UK, and China developed a composite material that efficiently extracts gold from e-waste, offering a power-free alternative to traditional methods. (to the source )

#climate_change

Lahore, Pakistan, closed primary schools for a week due to high air pollution. Office workers will work from home as part of a "green lockdown" plan. The city topped the world list of most polluted cities for the second time. The government is urging people to stay indoors and avoid unnecessary travel. (to the source )

Critics fear Trump's victory will result in more pollution and worse climate outcomes. Trump has pledged to pull the US out of the Paris climate agreement, rescind Biden's regulations, and boost domestic oil and gas production. (to the source )

The Philippines experienced its most significant drop in farm output in four years, with a 3.7% decrease from the previous year, potentially affecting the country's economic growth. (to the source )

The Philippines is set to face its fourth storm in a month, typhoon Yinxing, which is expected to bring over 200mm of rain to Cagayan province. This could add to the growing crop losses totaling at least 11.5 billion pesos this year. (to the source )

The service reported South Africa's first major snowfall in 85 years. (to the source )

Bogotá faces a "structural problem" due to water shortages, causing strict rationing and drier conditions. The country’s president blames predatory development models and powerful individuals for the crisis, urging fossil fuel-powered plants to conserve water. (to the source )

Given that more than 60% of Spain's fresh produce is produced in the Valencia region, the floods in Spain are predicted to have a significant effect on European food supply chains and store supplies around the continent. (to the source )

Climate change is suspected to be causing the spread of the Chikungunya mosquito-borne virus in Karachi, leading to increased cases and potential health issues. (to the source )

Saudi Arabia's deputy environment minister warns of the urgent need to combat land degradation, highlighting the global issue of over 2bn hectares degraded, threatening human life and causing trillions of dollars in losses. (to the source )

The Amazon rainforest in Brazil experienced a 30.6% decrease in forest loss, marking the lowest level in nine years, contrasting the results under the previous president who prioritised agribusiness expansion. (to the source )?

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