Sustainability Progress Report #35

?? 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

In Busan, the EU emphasises the need to address the adverse impacts of plastic pollution on the environment and human health, calling for comprehensive rules on plastic production, including eliminating chemicals, bans, and phase-outs. It also advocates for major producers to bear financial responsibility for plastic pollution. (to the source)

Major fossil fuel-producing nations, including Saudi Arabia, Russia, and Iran, have stalled talks on a global plastic pollution treaty in Busan, South Korea, accusing negotiators of failing to act in good faith. (to the source)

Legal progress on the plastics pollution treaty is underway, but no text has been submitted for review. INC5 chair promises revised text by Friday. (to the source)

The European Commission plans to issue rules governing the environmental impact of general-purpose AI (GPAI) systems through secondary legislation under the AI Act. The rules, effective in August 2025, will require GPAI providers to track energy consumption and report any direct or indirect harm to the environment. (to the source)

#trends

The biodiversity credits market, a strategy to combat wildlife loss, could reach US$7 billion by 2030 and US$180 billion by 2050, but their complexity raises questions about their impact on conservation. (to the source)

Guimar?es and águeda (Portugal) and Vaasa (Finland) won the European Green Cities Awards 2026 for their commitment to sustainability and "One Planet City" motto. (to the source)

ArcelorMittal, the world's second-largest steelmaker, is delaying planned green investments due to uncertainties over EU regulatory directives. The company awaits the European Commission's Steel and Metals Action Plan decision. (to the source)

Secondhand websites and lower-price competitors are taking over customers from luxury brands causing the industry to experience a significant decline in customer base. (to the source)

A survey of 400 CSOs in North America and Europe revealed that despite companies employing sustainability teams, knowledge about the carbon market, credits, and projects is lacking. (to the source)

Indonesia rejected Apple's $100 million investment plan to lift the iPhone 16 sales ban, citing local content requirements and Apple's reluctance to build production facilities in Southeast Asia's largest economy. (to the source)

Wall Street is uneasy about Trump's tariff threats, but traders are not panicking. Automakers face heavy losses and Mexican and Canadian currencies weaken against the U.S. dollar. (to the source)

HSBC stops plans to establish a carbon credit desk due to accusations of over-issuing credits and malpractice. The voluntary carbon market has lost significant revenue, with companies like Shell and Delta Airlines withdrawing, and Google shifting its focus to emissions reduction. (to the source)

ExxonMobil plans to invest $200 million in Texas' Baytown and Beaumont sites to increase recycling capacity, aiming to process hard-to-recycle plastics into raw materials for fuels, chemicals, and packaging. (to the source)

New business models face regulatory constraints. For Uber it’s because of a debate over workers’ rights and for Airbnb it’s because of fears of overtourism and rising housing costs. In Italy, new laws force users of e-scooters to wear helmets and carry insurance. These restrictions could depress demand. (to the source)

Germany's Nova Institute published a report assessing net-zero visions for the chemical and plastics industries. The report predicts continued growth in production, with an estimated 2.4-fold increase in global feedstock demand by 2050. The report emphasizes the importance of biomass, CO2 recovery, and recycling. (to the source)

#reporting

KPMG's Sustainability Reporting 2024 survey reveals a surge in global businesses integrating ESG practices, with 95% publishing carbon reduction targets and hiring for sustainability leadership roles. (to the source)

The same report shows 40% of global companies are integrating ESG performance into executive pay, appointing sustainability leaders, and setting climate goals, despite being in the early stages of implementing mandatory requirements. (to the source)

KPMG's 2024 survey revealed Singapore's top 100 companies recognize climate change as a financial risk, surpassing the global average of 55%. Singapore's strong corporate governance and ESG integration demonstrate its leadership in sustainability reporting. (to the source)

#litigation_and_negotiation

COP29 summit adopts $300 billion global finance target to aid developing nations in climate change mitigation, but recipients call the deal insufficient. (to the source)

Experts suggest COP climate talks need an urgent overhaul to support fossil energy phase-out, as the current process is insufficient for delivering rapid, exponential change. (to the source)

The European Commission fined Pierre Cardin and Ahlers €5.7 million for violating EU antitrust rules, citing anticompetitive practices to shield Ahlers from competition in EEA countries, including restrictions on cross-border sales. (to the source)

A lawsuit was filed against Kern County, California, challenging the approval of the Carbon TerraVault I project, arguing that the county failed to conduct a thorough environmental review and consider alternative solutions, highlighting potential risks of CO2 leaks and potential environmental damage. (to the source)

#human_and_labour_rights

Indonesia's Lambo Dam, a national priority infrastructure project, will create a reservoir to provide water for the Nagekeo district's population, displacing Indigenous people along the way. (to the source)

Swedwatch's report on Bangladesh garment workers highlights poverty, low wages, and systemic issues, urging policymakers and global brands to ensure their suppliers' workers have a living wage. (to the source)

Uniqlo’s boss confirmed that the Japanese fashion chain does not use Xinjiang cotton, despite allegations of a forced labour expert that they use materials produced by the Uyghur minority. (to the source)

Oxfam Australia claims national major fashion brands, including Kmart, Big W, Cotton On, Rip Curl, KMD, Myer, and Hanes, are underpaying female garment workers despite their significant profits. (to the source)

The investigation by the Prosecutor's Office of Napoli Nord revealed exploitative conditions for foreign agricultural workers, including meager wages, long working hours, and lack of resources. The workers were placed in protective custody to protect their dignity and individual freedom. (to the source)

The UN Special Rapporteur on contemporary slavery visited Australia in November, revealing preliminary findings on widespread exploitation of migrant workers, including deceptive recruitment, wage theft, and dangerous working conditions. (to the source)

Nepal is digitizing labour migration processes through the Foreign Employment Information Management System (FEIMS), integrating recruitment, deployment, employment, and return processes, to increase adherence to labour standards. (to the source)

The 2024 Global Rights Project report by the University of Rhode Island shows a significant global lack of respect for human rights, with 62% of 195 countries receiving an 'F', largely due to democratic backsliding, inequality, and digital repression. (to the source)

United Nations Forum on Business and Human Rights, follow the link to see the of interest. (to the source)

Feels like you’ve seen this all before. Walmart is reducing its DEI initiatives, joining a growing list of companies facing pressure from conservative groups. The company will no longer consider race and gender to boost diversity when granting supplier contracts and will scale back racial equity training. (to the source)

UNDP’s recently published The Practical HRDD+E Tool provides businesses with practical advice on integrating environmental dimensions into human rights due diligence, addressing adverse impacts on human rights, and promoting a healthy environment. (to the source)

Volkswagen plans to sell operations in China's Xinjiang region amid human rights allegations. (to the source)

#energy_transition

Trump may use tariff threats to gain policy concessions from allies, particularly Germany, due to its close economic ties to China. (to the source)

Nissan seeks anchor investors to survive the crisis as Renault sells down its Nissan holding. Negotiations involve Honda buying shares, presenting a test case for companies to survive industry upheaval. (to the source)

China's top EV maker, BYD, seeks a 10% price cut for car parts next year, signaling a fierce price war and economic gloom in the highly competitive EV market. (to the source)

Pakistan is set to add 17 GW of solar power in 2024, a significant increase compared to other countries, aiming to achieve 60% renewable energy by 2030. This growth places Pakistan as one of the top installers of solar panels globally for 2024, in the company of much bigger, richer economies like China, the US, and Germany. (to the source)

BNP Paribas Asset Management will cease investments in new bonds issued by oil and gas companies to support the transition to sustainable energy sources and screening those failing to adapt swiftly. (to the source)

IAG Airlines plans to purchase Infinium's eSAF (sustainable aviation fuel) to reduce 90% of lifecycle emissions, aiming for net zero emissions by 2050. (to the source)

#decarbonisation

WBCSD is launching an open consultation to refine its 2023 Guidance on Avoided Emissions, aiming to improve technical aspects, practical use, and adoption by standard setters. The consultations are open until 18 January 2025. (to the source)

Google opens its first office building in California constructed using mass timber to reduce embodied carbon emissions by 96% compared to steel and concrete structures. This, however, does not take the focus off the environmental impact of their AI use. (to the source)

Italy and Poland are urging to delay stricter emissions standards, claiming climate environmental policy presents a major threat to staying competitive in the automotive industry. (to the source)

The European People's Party environment policy leader expressed doubts over the EU's ability to achieve a 90% emissions cut by 2040. The EU is required to submit an interim target for 2035 under the terms of the Paris Agreement. (to the source)

Experts are uncertain about China's carbon dioxide emissions peaking by 2025, despite optimism about environmental progress, including green energy, the electric vehicle boom, and the declining building industry. (to the source)

According to recent research, biochar can meet CDR targets due to its consistent permanence under conventional agricultural practices, supporting the use of Biochar Carbon Removals as permanent removal regulations. (to the source)

Carbon crediting mechanisms, used in mitigation projects, raised concerns over environmental integrity. A systematic evaluation of 2,346 projects found that less than 16% of credits resulted in real emission reductions. (to the source)

COP29 agrees on a global carbon market regulatory framework, the Paris Agreement Crediting Mechanism, aiming to reduce national climate plan implementation costs by $250 billion/year. (to the source)

#waste_pollution

Plastic lobbyists make up the largest group at UN treaty talks, arguing against the inclusion of caps on global plastic production. They outnumber delegates from the Scientists' Coalition for an Effective Plastics Treaty by 3 to 1. Plastic production is expected to triple by 2060, and over 900 independent scientists have called for a comprehensive global plastics treaty to end pollution by 2040. (to the source)

Even though the UN Environment Program is working on finalizing a global treaty in Busan to limit plastic pollution, with campaigners calling for a 40% reduction by 2040, some argue this is insufficient to limit global temperature rise to 1.5 degrees Celsius. (to the source)

A recent study reveals the harmful ecological effects of microplastics and PFAS on aquatic ecosystems, linked to the fashion industry's use of synthetic textiles and water-repellent fabrics. (to the source)

The world wastes up to one-fifth of its food and contributes to 8-10% of GHG emissions. Some companies are combating that waste. Irish start-up Senoptica prints inexpensive sensors on ground beef packaging to help identify meat at risk of going bad and reduce waste caused by arbitrary "use by" dates. Butterfly Equity is focusing on "upcycling" by purchasing leftovers from cheese making and processing them into food and processing unwanted avocados into cooking oil. (to the source)

Romania's Jiului Valley, once a mining region, is becoming a dumping ground for textile waste, mainly imported from Germany, due to fraudulent practices and weak regulation. (to the source)

Closed Loop Fashion, GIZ, and Decathlon are collaborating on a recycling project in Morocco to reduce the country's annual textile waste by recycling polyester. (to the source)

#outdoor

ISPO Munich starts the first week of December. It will showcase tech innovations, innovative products, and material developments, as well as trends in athleisure, sports fashion, and streetwear. (to the source)

Allied Feather + Down, Active Apparel Group, and Templa developed an almost biodegradable down puffy jacket (99%+), designed to disappear in anaerobic environments for five years. (to the source)

The first Textiles Recycling Expo will be held next June in Brussels, aiming to foster collaboration and innovation in textile recycling. The event aims to attract companies from all levels of the waste supply chain. (to the source)

#apparel

The 2025 State of Fashion report reveals that sustainability is no longer a top risk for fashion brands, with competition from cheap knockoffs and inflation-squeezed consumers hindering progress toward decarbonization. (to the source)

A report from Vinted and RetailEconomics indicates that in 2024, consumers are increasingly gifting pre-loved items, accounting for just over 10% of all gift spending. (to the source)

Primark reduced carbon emissions in its value chain by 11.6%. The company now produces two-thirds of its clothing from recycled or sustainably sourced materials and is focusing on increasing regenerative agriculture practices within its Cotton Project by 2030. (to the source)

Forced labour persists in cotton production, impacting HRDD requirements and ethical sourcing. Anti-Slavery International monitors Turkmenistan and Uzbekistan labor issues, highlighting state-led and incomplete reforms. (to the source)

Global Fashion Agenda, GIZ, and H&M Foundation collaborate to launch the 'Upstream Circularity Playbook', aiming to scale up recycling operations in textile and garment supply chains globally. (to the source)?

#consumer_goods?

Coffee prices surged to their highest in 50 years due to global supply shortages and EU deforestation laws, driven by coffee roasters securing supplies. (to the source)

Unilever is in talks with investment bank Piper Sandler to auction its plant-based meat brand, The Vegetarian Butcher, amid a challenging period for meat alternatives in the Netherlands. (to the source)

French food company alliance headed by dairy company Bel Group is investing €9M into R&D aiming to enhance the taste and texture of plant-based cheese through traditional fermentation and aging processes. The project will focus on nutrition and plant-based proteins, with the aim of creating more sustainable food options. (to the source)

LEGO Group plans to transition to paper bags for LEGO sets packaging, following the last-year’s announcement of the single-use plastic phase-out. (to the source)

Unilever and Nufarm are collaborating to replace petrochemical-based oils in cleaning products with plant-based oils, promoting a more sustainable supply chain and reducing emissions. (to the source)

#innovation

University of Wisconsin-Madison researchers develop a water-soluble chemical additive for improving bromide-based aqueous flow batteries, offering scalability, sustainability, and safety benefits, with plans for refinement and commercialization. (to the source)

Researchers in Canada are using AI to monitor the rapid extinction of insects, hoping to collect data to reverse species collapse and prevent catastrophic global events. The project, Antenna, uses high-resolution cameras, low-cost sensors, and AI models. (to the source)

Oosterwold, a self-sufficient urban experiment in the Netherlands counts 5,000 residents. Half of each resident’s plot is devoted to urban agriculture.? (to the source)

#circularity

New Circularity Gap report: The global textile industry uses only 0.3% recycled materials, with over 99% coming from virgin sources. To reduce textile waste, the industry must reduce production and consumption, employ millions of people, and focus on quality over quantity. Addressing unsafe working conditions and fair wages is crucial for a fairer industry. (to the source)

New JRC report: A JRC report evaluates EU Ecodesign regulation's potential for regulating 18 product groups, identifying potential environmental impacts and EU strategic autonomy enhancements, and influencing the first ESPR Working Plan. (to the source)

Circular Monday, a Swedish campaign promoting circularity, launched a campaign where 1,200 businesses from 40 countries can show support to counter the climate effects of Black Friday and Cyber Monday, instead of supporting circular economies. (to the source)

A study from Systemiq proposes a strategy to shift the US PET packaging and polyester textile industries from a linear single-use framework to circular systems, aiming to cut waste in half and create 46,000 jobs by 2040. The plan is supported by Closed Loop Partners, Eunomia, and The Recycling Partnership. (to the source)

#climate_change

Seoul experienced the worst November snowstorm in over a century, causing power outages, transportation disruptions, grounded flights, and two deaths. (to the source)

South Africa's penguins face a survival crisis due to declining fish populations, habitat destruction, and climate change. Conservation efforts include designated preservation zones, public awareness, and research. (to the source)

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