Sustainability Progress Report #39

?? 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 Gender Balance on Corporate Boards Directive aims for a more balanced gender representation in EU listed companies. The directive targets 40% underrepresented sex in non-executive directors and 33% in all directors. The deadline for meeting targets is June 30, 2026. (to the source)

The Platform on Sustainable Finance is launching a public consultation to improve the EU Taxonomy, aiming to simplify criteria for harm avoidance and expand eligible activities to align with the EU's six environmental objectives. (to the source)

The EU's Construction Products Regulation aims to modernize the industry with Digital Product Passports, promoting offsite construction methods, and reducing waste, aiming to increase sector productivity and reduce environmental impacts. (to the source)

The US Treasury and IRS finalized rules for Clean Electricity Investment and Production Tax Credits, aiming to save $38 billion by 2030 for households using various clean energy technologies starting after December 31, 2024. (to the source)

The US Treasury and IRS released final rules for the 45V Clean Hydrogen Production Tax Credit, aiming to drive industry growth while meeting emissions standards. Key provisions include a lifetime emissions threshold, tiered credits, industry feedback, safety measures, and collaboration with agencies. (to the source)

California, New York, and Colorado have passed laws banning or restricting the sale of outdoor apparel containing PFAS labels, with New York's 'PFAS in Apparel' bill starting implementation in 2025, and California's PFAS ban on food packaging beginning in 2023 will be extended to include textiles in 2025. (to the source)

#trends

Environmental groups are focusing on COP30 in Brazil to address agricultural methane, highlighting the importance of the Big Meat and Dairy industry as a major source of man-made methane emissions. (to the source)

A report by the Asia Investor Group on Climate Change shows that despite 70% of Asian investors acknowledging climate change as a risk and opportunity, only 28% have climate action plans to align their business activities with international targets. (to the source)

India will face a duty of Euro 173.8 per tonne on steel exports to the EU when the CBAM becomes fully operational, equivalent to 16.06% of the 2022 price, due to high carbon emission intensity. (to the source)

Indonesia's new president was criticized for negating deforestation in oil palm plantation expansions, arguing these also absorb CO2 and produce oxygen. Environmental activists argue this narrative downplays scientific evidence of deforestation, biodiversity loss, and carbon emissions. (to the source)

Nickel producers face 2025 challenges due to global oversupply, Indonesia's industry expansion, and 40% production cut. London Metal Exchange reports 7.2% drop, 28.7% decline, and increased mine closure risks. (to the source)

EU countries set interim targets for 2025 to reduce pollution, greenhouse gas emissions, and restore nature, including textiles, recycling, plastics, nature, and cars. However, most may miss these targets, with Belgium, Luxembourg, and Italy close. (to the source)

US banks Morgan Stanley, Citi, and Bank of America left the Net-Zero Banking Alliance (NZBA), a coalition aiming for net-zero emissions by 2050. The departures are influenced by political and legal challenges, including antitrust concerns and opposition to fossil fuel financing restrictions. (to the source)

The UK government will reconsider a net zero "flight tax" if it adds hundreds of pounds to holidaymakers' journeys. New rules requiring airlines to use green fuel could increase flying costs by over 20%, but the government could review the mandate to prevent significant price increases. (to the source)

Mercedes-Benz Group AG experienced a 3% decline in car sales in 2024 due to weak demand for expensive models in China and electric vehicles in Europe, resulting in profit warnings. (to the source)

China's Zijin Mining Group is in talks to acquire shares in Zangge Mining Co. Ltd., a Chinese producer of lithium battery material. The move could lead to a takeover, as Zijin aims to become a bigger player in the expanding global lithium market. (to the source)

Everstream Analytics predicts rising ocean temperatures in 2025 will intensify flood events, with the US being the most affected globally, alongside geopolitical instability, cyber attacks, and trade restrictions.? (to the source)

Frans Timmermans, the EU's "Green Deal architect”, warns that European voters may abandon climate change efforts unless the wealthy fund green costs. He suggests governments focus on the poorest to counter radical right-wing parties' support. (to the source)

Most shipping fleet countries, including Liberia and Panama, proposed a flat tax on GHG emissions, highlighting the need for all shipowners to pay for pollution. This proposal, supported by Japan and Greece, underscores the industry's dependence on fossil fuels. (to the source)

Germany imported 68.6t of uranium from Russia in 2024, a 70% increase from 2023, according to Der Spiegel. The uranium was delivered to the Advanced Nuclear Fuels factory in Lingen, Lower Saxony, for use in nuclear power plants. (to the source)

#human_and_labour_rights

McDonald's Corp. became the first major company to withdraw from diversity goals this year, following a 2023 Supreme Court ruling and other companies rethinking equity programs. (to the source)

Extreme weather events, particularly heat, pose significant risks to food delivery workers worldwide. As temperatures rise, orders surge, transferring heat exposure directly to workers. App companies like Swiggy and Zomato must provide heat allowances, subsidies, and training programs. (to the source)

NGO Transparentem investigated labour violations on Madhya Pradesh cotton farms, linking them to 60 brands. The investigation revealed forced labor, wage violations, abusive working conditions, and hazardous conditions. The report encourages collaboration for remediation plans. (to the source)

#energy_transition

Vale and GreenIron have partnered to reduce emissions in the mining and metals supply chain with green hydrogen. (to the source)

Nickel's high demand for EVs and renewable energy storage is causing supply strain, necessitating sustainable mining and refining infrastructure investments. (to the source)

Portugal's renewable energy generation increased to 71% in 2024, with solar power contributing 10% of total electricity consumption, while natural gas consumption fell 17%, demonstrating its transition from fossil fuels. (to the source)

Europe purchased a record 17.8m tonnes of ultra-cold Russian gas in 2024, despite EU efforts to reduce fossil fuel funding for Putin's war chest. (to the source)

Romania's production of gas off the Black Sea coast is expected to reach 15 terawatt-hours. Romania's offshore gas reserves are expected to diversify the region's supply and position the country as the EU’s largest gas producer. (to the source)

#decarbonisation

The world's richest 1% have already used up their 2025 carbon budget, causing an average of 2.1 tonnes of emissions in just 10 days. (to the source)

Researchers in Australia conducted in-field investigations to assess the effectiveness of enhanced weathering (EW) in removing carbon dioxide from acidic soils, highlighting its potential benefits for soil health and crop yields. (to the source)

Automakers like Stellantis, Toyota, and Ford are partnering with EV leaders Tesla and Polestar to pool CO? emissions and buy carbon credits to avoid EU emissions fines. The partnership could save hundreds of millions of euros, as the 2025 rules could cost €15 billion. (to the source)

Morgan Stanley left the Net-Zero Banking Alliance, despite remaining committed to its climate goals, despite facing pressure from US politicians regarding potential legal violations and exclusion from state business. (to the source)

ShareAction and the Australasian Centre for Corporate Responsibility filed a shareholder resolution at Shell, urging for transparency on its plans for liquefied natural gas production. (to the source)

California approves its first carbon capture and storage project in Kern County, allowing safe injection of carbon dioxide into deep rock formation without harming local drinking water. (to the source)

China's carbon market expansion to include polluting industries may slow the price rally in 2025 due to persistent surplus and expiring old permits. (to the source)

#waste_pollution

Romania's ministry of agriculture approved the use of Cruiser 350 FS for maize and sunflower crops in 2025, despite a court ruling that such derogations are illegal and despite the insecticide being banned in the EU due to its impact on pollinators. (to the source)

Ghana's water utility shut down its largest mining hub treatment plant due to illegal gold mining polluting the River Bonsa, affecting 75% of potable water supplies. (to the source)

Researchers found increased radioactivity in mussels' soft tissue, potentially bioaccumulating in the food chain, near oil and gas discharge points. (to the source)

Global stakeholders are urged to combat secondhand textile misinformation and promote evidence-based research and policymaking, as the Mitumba Consortium Association of Kenya warns of threats to sustainable practices. (to the source)

#outdoor

UK outdoor brand Rab and Boulder UK are partnering to promote women's climbing through their Women's Social initiative. (to the source)

#apparel

Nordic Innovation is funding a project to explore opportunities for Nordic wool, aiming to make the wool supply chain more sustainable. Norion, a Copenhagen-based consultancy, will lead the project, addressing issues in wool production and consumption. (to the source)

China imported 1.25 million tonnes of cotton yarn in 2024, down 2.5% from 2023, but expected to remain below 2023's full-year figure due to currency exchange rate increases. (to the source)

Brands like Adidas and Zara are sourcing new materials from unexpected sources to achieve a low-carbon future. These next-generation materials, such as mushroom-based leather and bio-based synthetics, could reduce emissions by 39%. (to the source)

A study by Université catholique de Louvain and Edhec Business School reveals that clothing rental services can lead to higher consumption among certain demographics, highlighting the potential unintended consequences of renting clothes over buying. (to the source)

The US National Institute of Standards and Technology (NIST) developed a database cataloging textile fibre molecular fingerprints to improve mass sorting for recycling. The database aims to reduce landfill waste and improve sorting algorithms, which typically involve manual labour. (to the source)

Next predicts a 1% price increase for all goods in 2025, with other retailers likely to follow suit due to higher employee costs. (to the source)

Research suggests that the effectiveness of social compliance audits in Bangladesh's garment industry is partly influenced by factory owners' attitudes, highlighting the global garment industry's unique approaches. (to the source)

#consumer_goods?

Mars aims to achieve a physically segregated global cocoa supply chain by 2030, using only cocoa from farms certified by Fairtrade and Rainforest Alliance, enhancing its Responsibly Sourced Cocoa Program. (to the source)

KIND and ofi have reduced water use by 30% on KG Ranch in California, primarily for almond trees, using dendrometers and developing regenerative practices. (to the source)

#innovation

Residents in Singapore are testing canisters with male mosquitoes infected with a bacteria that prevents reproduction, part of a $1.45 million four-year effort to reduce dengue levels. (to the source)

Microsoft, Google, and others invested $300 million in startups focusing on enhancing rock weathering (ERW), a technique that accelerates geochemical reactions between rocks and CO2, potentially removing 2-4 billion tons of CO2 annually. (to the source)

Researchers at Shenkar College have created a fibre that transforms from yellow to green when exposed to toxic gas, ammonia, a potential human health hazard. (to the source)

French bio-based dye manufacturer Pili collaborates with California-based Citizens of Humanity and Turkish denim mill Orta to launch a denim collection using Pili bio-based indigo, an eco-friendly alternative to fossil fuel-based dyes. (to the source)

#circularity

Rebel Fuels, a Delaware Public Benefit Corporation, is launching innovative carbon recycling technology to transform waste carbon dioxide into carbon-neutral fuels, reducing greenhouse gas emissions and promoting a circular carbon economy. (to the source)

Nottingham-based start-up Dark Green plans to build six biogas plants in urban centres across Britain, converting food waste into green energy. The facilities will produce seven megawatts of energy, saving 65,000 cars off the road. (to the source)

#climate_change

Climate change increased the vulnerability of grasses and shrubs fueling Los Angeles fires by 31-66% since the mid-20th century. Rapid swings between dry and wet conditions have created tinder-dry vegetation, leading to wildfires, deaths, and evacuation orders. (to the source)

Climate change is affecting the growth and development of apple orchards in the US, particularly in major apple-producing regions like Yakima County, Washington, Kent County, and Wayne County. (to the source)

Restoring ecosystems through carbon-efficient supply chains, such as kelp-based foods, can significantly reduce the carbon impact of food production and contribute to a more sustainable future. (to the source)

UN climate expert Elisa Morgera warns that the international climate effort is dominated by misinformation and bad faith, with false narratives and tech fixes diverting attention from equitable solutions for the least affected countries. She suggests fundamental reform is possible with state and secretariat willingness. (to the source)

Cold air from the Arctic escaped into the US, causing a polar vortex. Experts believe this phenomenon is more frequent due to a warming world. The jet stream, which moves weather systems, is channelling cold Canadian and Arctic air from north to south. (to the source)

This little newsletter is soon moving onto a website platform to have more control over design and categorization of topics. It will also be changing its form and introducing some interesting reads and podcast episodes for the week. If you enjoyed following it, keep an eye on updates.