Sustainability Progress Report #36

?? 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

As you might have already heard, a global treaty aimed at curbing plastic pollution failed to reach agreement, with over 100 nations wanting to cap production and a few oil producers focusing only on plastic waste. Discussed issues included capping production, managing products, and financing for developing countries. (to the source)

WWF is disappointed that countries failed to reach an agreement on a globally binding plastic pollution treaty, despite governments’ demanding ambitious measures. WWF calls for binding upstream measures, product design, robust finance mechanisms, and strengthening the treaty over time. (to the source)

The European Commission plans to create an 'omnibus legislation' to protect its sustainability rules during negotiations. The omnibus would create a single legislation mandating changes to the CSDDD, CSRD, and Taxonomy Regulation. A legislative proposal is expected in Q1 2025. (to the source)

The EU postponed the enforcement of its deforestation regulation by 12 months to December 2025, ensuring targets remain unchanged. This will allow businesses, farmers, and authorities more time to prepare for new due diligence obligations. (to the source)

The EU Commissioner pledged to continue with new rules to provide equal job rights for interns, despite member states' disagreement on a watered-down text. She defended Brussels' plans to improve working conditions for over 3 million trainees and urged EU member states to negotiate to improve the law.? (to the source)

The Council of Europe backed an EU proposal to downgrade wolves' protection status from “strictly protected” to “protected”, causing outrage among conservationists. The decision, which will take effect in three months, is seen as a dangerous precedent for other European species and undermines EU environmental governance and credibility. (to the source)

Spain is introducing a new law granting employees up to four days of paid climate leave following recent floods. The legislation prevents companies from penalizing workers for staying home during extreme weather conditions and mandates companies to implement risk-prevention measures. (to the source)

The RSPO revised its 2024 Principles and Criteria, aiming to balance conservation goals with industry practicalities, including addressing deforestation and enhancing smallholder inclusion. (to the source)

#trends

KPMG's 2024 CEO Outlook reveals that Canadian CEOs prioritize ESG priorities. However, 63% struggle to embed ESG as a value driver. 78% prioritize ESG due to regulatory obligations. (to the source)

A professor at CBS Centre for Sustainability identifies three barriers to sustainability integration in board-level discussions: unclear structures, compliance mindset, and lack of ESG competencies. (to the source)

Morgan Stanley's survey indicates that 78% of asset managers and 80% of owners anticipate sustainable funds' growth in the next two years, driven by growth opportunities and sustainable investing maturity.? (to the source)

Japanese fashion giant Fast Retailing shares fell by 4.5% after CEO Tadashi Yanai claimed the company did not use cotton from China's Xinjiang region, where Uyghur Muslims are allegedly used as forced labour. (to the source)

Volkswagen CEO warned staff that urgent measures are needed to secure the company's future amid increased competition, price pressure, and high labor costs. He stated that while the company made progress in streamlining operations and improving car design, more reductions are needed. (to the source)

Volkswagen workers in Germany are protesting wage cuts and site closures, with 98,650 employees at nine plants participating. (to the source)

Thailand completed its first Sustainability-Linked Bond (SLB), raising $865 million, with interest rates tied to the country's climate and energy transition goals. The offering is the first in Asia and the third globally, marking a significant milestone for SLBs. The bonds aim to reduce greenhouse gas emissions by 30% by 2030 and increase zero-emission passenger vehicle registrations to 440,000 per year by 2030. (to the source)

China banned exports of critical minerals to the US, escalating trade tensions ahead of Trump's inauguration. The move strengthens existing limits on critical minerals exports but applies only to the US market. (to the source)

Global trading company Cargill plans to cut 5% of its staff, or 8,000 jobs, due to a slump in revenue and low commodity crop prices. The focus will be on streamlining the organizational structure, expanding managers' responsibilities, and reducing duplication of work. (to the source)

England's BNG market allows developers to sell nature units to offset habitat damage, causing criticism. Critics argue nature credits can damage corporate reputations. (to the source)

The SV party in Norway halted plans to mine the Arctic seabed, demanding the government scrap its first licensing round in exchange for budget support. The government's plans to offer deep-sea mining exploration permits are expected to be postponed but probably not cancelled. (to the source)

The UN Environment Programme reports a decline in seagrass species, with 7% of habitats lost annually. Restoring eelgrass, a carbon-capturing species, is crucial due to rising sea surface temperatures. To protect it, 60 nations should ratify the Treaty of the High Seas. (to the source)

#reporting

The European Commission released a FAQ document for implementing the EU Taxonomy. (to the source, resource)

PwC's survey reveals that the 'Second Wave' of companies preparing to publish their first sustainability reports in 2026 are less likely to use financial accountants or have their documents approved by their CEO.? Over half of respondents (56%) said financial accountants were the main source of experience for developing their CSRD implementation roadmap. Only a quarter (25%) rely on non-financial accountants and another (24%) on internal sustainability advisors. The survey also found that 27% of 'First Wave' companies will get their reports signed off by the CEO, while only 9% of Second Wave firms will. (to the source)

#litigation_and_negotiation

Disney agreed to pay $43.3 million to settle allegations that it paid female middle managers less than men over a decade, avoiding a costly jury trial. The settlement, filed in California, marks a significant step towards resolving a legal dispute. (to the source)

Maine is suing oil and gas companies for concealing fossil fuel effects and contributing to extreme weather. The lawsuit accuses them of withholding knowledge since the 1960s, while Exxon Mobil argues it invested $20 billion in lower-emission initiatives. (to the source)

Texas Attorney General Paxton is suing BlackRock, Vanguard, and State Street for violating the Clayton Act by manipulating coal markets and increasing energy costs through climate-focused investment initiatives. (to the source)

The international court of justice (ICJ) has been tasked with ruling on whether or not a few countries should be held legally responsible for the ongoing impacts of climate change. The court heard from Pacific island states like Vanuatu, who are bearing the brunt of rising sea levels and severe disasters. The court will publish written statements, including personal testimonies, to determine their obligations and legal consequences. (to the source)

#human_and_labour_rights

Belgium introduced a global first law providing sex workers with official employment contracts, health insurance, pensions, maternity leave, and sick days, addressing state support issues during the Covid pandemic. (to the source)

The cocoa industry - represented by the World Cocoa Foundation, C?te d'Ivoire and Ghana governments, and the US Department of Labour have signed a 2024 Framework of Action to combat child labor in cocoa-growing communities. (to the source)

UK supermarkets are selling "Italian" tomato purees that may contain Chinese tomatoes grown and picked in China using forced labour. 17 products, mostly own-brands, are likely to contain Chinese tomatoes, originating from the Xinjiang region. All supermarkets dispute these findings. (to the source)

Bangladesh's Ready-Made Garment sector is facing poverty due to low wages, with workers earning only 38% of living wage. This leaves essential needs unaffordable, forcing workers to accept overtime and shoulder excessive production targets. Systemic issues like weak labor laws and barriers to unionisation exacerbate the problem. Global brands and EU policymakers need to take coordinated action to improve wages and conditions for garment workers. (to the source)

Malaysia's National Baseline Assessment on Business and Human Rights (NBA) report calls for human rights integration into domestic laws, argues UNGPs insufficient, and recommends a National Action Plan on Business and Human Rights (NAPBHR), highlighting universal human rights impact reporting. (to the source)

Mexico's government plans to increase the minimum wage by 12% next year to assist the poorest workers, with the wage set to 278.80 pesos per day across most of the country, with a daily increase to 420 pesos in northern Mexico. (to the source)

Turkey is engaged in wage talks to raise the minimum wage amid a persistent cost-of-living crisis. Inflation reached 47.09% in November, potentially reducing interest rate cuts. Union leader criticizes those pushing for a restrained hike. The IMF advises Turkey to avoid inflation-fueling hikes and focus on supporting the poorest population. (to the source)

Apple faces a California lawsuit for illegally monitoring workers' personal devices and iCloud accounts, allegedly requiring them to install software to access data and impose confidentiality policies. Apple denies these allegations and claims that workers are trained annually on their rights to discuss their working conditions. (to the source)

#energy_transition

Lufthansa Group is expanding its Green Fares program to long-haul routes, allowing passengers to offset CO2 emissions and support climate protection projects. (to the source)

Global EV ownership is predicted to reach 85 million by 2025, with China accounting for over half of the fleet. This growth is primarily driven by higher EV sales in China and Europe, which represent 82% of total EVs worldwide. Second and third-tier cities in China will emerge as growth areas. (to the source)

Indonesia's President Prabowo Subianto committed to phase out coal and other fossil-fueled power plants within 15 years, requiring significant energy and climate policy reforms. The challenges remain a lack of renewable investment targets and the retirement of the country's first coal plant. (to the source)

US trade officials imposed tariffs on solar panel imports from Malaysia, Cambodia, Vietnam, and Thailand, following complaints from American manufacturers about unfairly cheap goods. The Commerce Department estimates dumping duties ranging from 21.31% to 271.2%. Most solar panels in the US are made overseas. (to the source)

A Brussels-based study reveals that 87% of airlines are not investing enough in sustainable jet fuel, which accounts for 1% of global aviation fuel use. Major oil players are hindering market growth, with Air France-KLM, United Airlines, and Norwegian among the top airlines that support sustainable jet fuel. (to the source)

The European steel industry faces challenges from decarbonisation costs and overcapacity, particularly in China, causing a 33% decline in production and a quarter job loss, affecting Europe's competitiveness. To retain a competitive steel industry, the EU must address imports and ensure the CBAM effectively achieves its purpose. (to the source)

CHN Energy connected its first photovoltaic units to the grid from a 1-gigawatt offshore solar farm in the Yellow Sea, generating 1.78 billion kilowatt-hours of electricity annually and preventing carbon dioxide emissions. This makes it the largest open-sea solar installation globally. (to the source)

#decarbonisation

A study published in Nature found that climate litigation affects company stock returns by 0.41%. Researchers from the London School of Economics found that firms receiving filings or unfavorable court decisions experienced an average reduction in share-price growth, with carbon majors experiencing the most significant impact. (to the source)

Going back to the roots? Powering cargo ships through wind energy is a rapidly growing trend as governments and trade organizations aim for tough emissions targets. The Maersk Tacoma, a 50,000-tonne tanker, will be fitted with four 85-foot-tall sails, reducing fuel consumption by a double-digit. Wind power gained less attention than alternative maritime fuels, but sails offer a cheap, proven option. Studies suggest a 10-15% fuel reduction is realistic, with redesigns expected to reach 100%. (to the source)

The Asia Investor Group on Climate Change reports that 70% of Asian investors acknowledge climate change as a threat, but only 28% have climate action plans to align their business activities with international targets. The report emphasizes the need for more concrete action to meet climate goals in Asia, with only 0.6% of companies disclosing data for all key indicators. (to the source)

The Clean Air Task Force and CONCITO released a report recommending best practices for integrating permanent carbon removal into the EU ETS by 2026, highlighting the potential for incentivizing affordable solutions and reducing emissions reduction motivation without safeguards. (to the source)

The UK Government, British Chamber of Commerce in Indonesia, and Standard Chartered Indonesia held a roundtable in London to discuss carbon market opportunities in Indonesia, emphasizing the need for accelerated investment in sustainable solutions. (to the source)

The European Commission allocated €4.6 billion through the Innovation Fund to accelerate decarbonization and enhance green technologies in Europe. The funding includes €2.4 billion for net-zero technologies, €1 billion for EV battery cell manufacturing, and €1.2 billion for renewable hydrogen projects. (to the source)

#waste_pollution

By 2040, EPR policies could save countries $70 billion. However, collection and recycling rates remain a challenge, especially for informal waste workers who face health risks and lack other opportunities. Integrating the informal waste sector into EPR policies could boost these rates. (to the source)

#outdoor

Seattle-based Rad Power Bikes is partnering with Upway to offer discounted e-bike upgrades at eight US RadRetail locations. The program, used by over 2,000 shops, provides valuation estimates across 200 brands. (to the source)

The Outdoor Retailer Climate Commitment (ORCC), a network of eleven European outdoor retailers, has published its 2023 annual report, highlighting progress in reducing CO2 emissions. The report shows action plans, 12,843 tonnes of CO2e saved in 2022, and four retailers setting supplier engagement targets. (to the source)

Asahi Kasei, a Japanese fibre producer, showcased new fabrics at ISPO in Munich. Eco-Smart yarns - Roica V550 and Roica EF - can degrade under ISO 14855-1 conditions. (to the source)

Lycra Company launched its bio-based Lycra EcoMade Fiber, featuring 70% renewable content, at ISPO Munich. The fiber is the largest renewable elastane commercialized at scale. (to the source)

Gore-Tex’s new Concurve line features a new PFAS-free membrane made from expanded polyethylene (ePE) sandwiched between a nylon face fabric and a lining, resulting in a DWR coating to keep the face fabric dry. (to the source)

#apparel

Cambodia's footwear exports are expected to rise by 20% to 30% next year, driven by brand diversification and a decrease in reliance on China. (to the source)

Better Cotton joined the Make the Label Count initiative to challenge the EU's PEF methodology. The initiative aims to ensure sustainability claims for textiles in the EU are fair, credible, and comprehensive as the two organizations believe the current PEF framework does not adequately address critical environmental factors. (to the source)

New “The State of Fashion 2025“ report is out! The fashion industry faces challenges in 2025 due to economic uncertainty, geographic disparities, and changing customer behavior. Brands are expected to localize, broaden price ranges, and focus on product discovery. (to the source)

Two major plans to increase chemical recycling capacity for PET plastics and polyester in France are delayed. Suez-Loop Industries' Saint-Avold factory and Eastman's Port-Jér?me facility are being reconsidered due to changes in the EU's packaging directive, which could restrict the import of recycled plastics. (to the source)

Wet early summer weather caused an explosion of weeds, causing damage to cotton crops in New South Wales earlier than usual. Cotton Australia warns of a threat of spray drift, where products used to protect a crop affect other crops. (to the source)

The Global Fashion Agenda is exploring the use of post-industrial textile waste as feedstock for new fabrics, highlighting a potential $4-$5 billion in annual revenue. (to the source)

The UN Convention to Combat Desertification released a report highlighting the significant environmental impact of the fashion and textile industry on land, soil health, and land degradation. (to the source and report)

Research by ICAC suggests traditional composting practices can promote healthy soil and more productive cotton farming, with promising results in soil health and fertility. (to the source)

The European Environment Agency's analysis of the EU's material footprint in 2021 revealed that clothing and footwear only accounted for 1% of the total, with a total of 6.6 billion tonnes of raw materials used. (to the source)

The Textile Exchange's report warns that global textile production's growth is incompatible with climate goals, highlighting increasing environmental and social impacts while growth remains the dominant business imperative. (to the source and report)

The British Fashion Council (BFC) plans to ban exotic animal skins from London's four main fashion weeks, requiring designers to remove such materials from their collections. (to the source)

The report examines the Chinese government's influence on Shein and Temu, two Chinese corporations focusing on global logistics and industrial poverty alleviation programs, highlighting their rapid growth and involvement in China's forced labor regime.? (to the source and report)

#consumer_goods?

Fashion for Good identified three key intervention levers to address plastic waste in the fashion industry: reduce plastic through process innovation, close the loop on existing plastics, and decouple from fossil fuels. They've initiated multi-stakeholder pilots and projects to explore sustainable packaging solutions, focusing on reducing environmental impact. (to the source)

CBS News investigation reveals that plastic cups, often advertised as recyclable, are not always recycled. Out of 36 tracked? Starbucks cups, 32 did not go to facilities. 14 cups went to landfills, 5 to incinerators, and 13 to waste transfer stations, where waste is compacted before being sent to landfills or incinerators. (to the source)

Coca-Cola was accused of abandoning its pledge to achieve a 25% reusable packaging target by 2030, a move seen as a "masterclass in greenwashing". Instead, the company decided to use 35% to 40% recycled material in primary packaging. (to the source)

Sustainability professionals in the food and retail industry are frustrated by stalled progress on climate targets, internal corporate politicking, environmental anxiety, human rights issues, dietary issues, and systemic challenges, with 75% of leaders unsure of achieving net zero pledges. (to the source)

Uncertainty in climate change is causing a surge in staple food prices, affecting low-income households and developing countries, expecting policymakers to address this uncertainty for food security. (to the source)

DSM-Firmenich defended Arla Foods' use of Bovaer, a methane-reducing supplement, in cattle trials, citing its safety approval from UK and EU Food Safety Authorities and its potential to improve animal welfare. (to the source)

Coca-Cola extended its voluntary environmental goals to 2035, aiming for 40% recyclate in primary packaging and 75% collection of bottles and cans. The company says 95% of its packaging is designed to be recycled. This, again, does not mean it will actually get recycled as we’ve seen in the Starbucks case. (to the source)

#innovation

Amazon.com is partnering with Orbital Materials to test a carbon-removal material for data centers, aiming to reduce emissions from AI systems. The sponge-like material could save up to 10% on GPU rental costs. (to the source)

A study reveals that supplementing cows’ alimentation with seaweed pellets could reduce beef’s methane emissions by nearly 40%. The research, published in the Proceedings of the National Academy of Sciences, aims to make seaweed additives more accessible to grazing cattle, making the industry more sustainable and meeting global meat demand. (to the source)

#circularity

Fashion for Good is partnering with FastfeetGrinded, Target, adidas, Inditex, and Zalando to test and validate footwear recycling processes, aiming to enhance circularity by funding recycling technology development and creating shared infrastructure. (to the source)

Circ patented a hydrothermal process that separates polycotton blends to make recycled polyester and directs the recuperated cotton to lyocell production. The plant is expected to process 200 tonnes of textile waste daily. (to the source)

Cirql recently introduced Cirql Zero, a foam material for footwear. Produced through supercritical foaming, it offers lightweight customizable midsoles that meet industrial compostability standards, and claim to reduce environmental impacts. (to the source)

Aditya Birla Fashion, Retail Limited, and GIZ released circularity guidelines for India's apparel and textile sector, aiming to transition from a linear to a circular economy model, featuring a 6R Framework and KPIs. (to the source)

The H&M Foundation's report on textile materials highlights a significant gap, with only 0.3% coming from recycled sources, and urges for the adoption of circular economy practices. (to the source)

#climate_change

Heavy rain in Malaysia and Thailand caused flooding, causing 12 deaths and displaced 122,000 people. Emergency services are deployed, 534,000 households affected, and six provinces declared disasters. (to the source)

Filipinos demand climate justice and reparation amid an endless cycle of disasters and recovery, highlighting growing vulnerabilities and the need for stronger government and corporate accountability for climate inaction, following the eleven-year anniversary of Typhoon Yolanda. (to the source)

Global warming is causing coral bleaching, with parts of the Great Barrier Reef constantly escaping it. Climate refugia are created by upwelling cooler water, providing thermal relief to corals. Two large refugia are likely to remain cooler than surrounding waters until the 2080s, potentially aiding reef survival and biodiversity preservation by allowing corals to adapt. (to the source)

Climate models underestimate heatwave potency in UK, France, Australia, and Canada, with extreme heat potentially outpacing them as the world warms, warns Kai Kornhuber. (to the source)

The Panama Canal Authority's $1.6 billion Rio Indio reservoir project, crucial for seaborne trade and U.S. imports, could submerge El Zaino y La Arenosa river valleys and affect Panama's agriculture and livestock industries. (to the source)

A new study provides the first projections of when the first ice-free day in the Arctic Ocean could occur. The range of the projected first ice-free day varies (to the source)

The 'tipping point' framing in climate change discourses is criticized for oversimplifying complex systems and conveying urgency without a basis for action. It also promotes confusion between policy benchmarks and climate system properties. Critics advocate for clearer language and critical evaluation of different framings for climate risk management. (to the source)

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