U.S. Natural Gas Generation Expected to Continue Major Growth This Summer + ESG Reporting Updates

Weekly Energy Market Update:

The July ‘23 natural gas contract is trading up at $2.53/MMbtu. The EIA reported an injection of 84 Bcf into/out of underground storage for the week ending June 9, 2023. Stocks were 26.5% more than the same period last year and 15.5% more than the 5-year average. Natural gas remains the primary source of generation in the electric power sector, and the EIA expects U.S. natural gas-fired generation will grow by 3% terawatt-hours (TWh), this summer compared with last year and increased U.S. renewable and natural gas generation is likely to reduce summer coal demand. U.S. electricity generation from natural gas peaks in the summer when the demand for electricity is greatest—mostly because of the demand for air conditioning.??

View Graphs Here >>>

Sustainability

Updates to Sustainability Reporting?Regulations?and Moves for?Consolidation?of Standards:

SEC

• SEC climate disclosure rule delayed until fall 2023, former commissioner says,?S&P Global.?The SEC initially suggested the rule would be published in December 2022 and then again pushed that date back to April 2023.
• Given the new time frame, financial statements and disclosures under the rule would not be due until 2024
• A new interview from the WSJ discusses climate disclosure and the usefulness of ISSB, and GRI standards in preparing for anticipated U.S. SEC disclosure rules:?A Materiality Focus Can Help Clear Up Climate Disclosure Uncertainty

ISSB?The?International Sustainability Standards Board

• ISSB Standards launch week?26-30 June?2023:?More information here
• In its recent meeting, the G7 reiterated its support for the ISSB: “We support the International Sustainability Standards Board (ISSB) finalizing the standards for general reporting on sustainability and for climate-related disclosures and working toward achieving globally interoperable sustainability disclosure frameworks.”?
• Is G7 Support for ISSB Climate Reporting Standards a Sign That Scope 3 Emission Disclosures Will Soon Be Required in U.S.?, National Law Review?Article >>
• NEW:?ISSB?on April 4 announced that companies can take a phased-in approach to reporting under its forthcoming?sustainability?standards, allowing them to focus only on?climate-specific information in the first reporting year of 2024 and wait to add other sustainability-related disclosures in 2025.?
• ISSB said it will relax other elements of the standards for the full first year a company uses the standards, including not having to report on Scope 3 greenhouse gas emissions
• Key dates for S1 General Sustainability-Related Disclosures and S2 Climate-Related Disclosures:
• Released by: end of June 2023
• Come into effect: start of Jan 2024
• Thirteen of fourteen members of ISSB’s board?agreed to reference both the Global Reporting Initiative (GRI) and the European Sustainability Reporting Standard (ESRS) frameworks in sources of guidance for IFRS S1.
• ISSB has just decided that its initial IFRS Sustainability Disclosure Standards, S1 (general sustainability) and S2 (climate-specific), will?become?effective starting January 2024, meaning that businesses can start collecting sustainability-related disclosure information for the 2024 period to publish reports in 2025.
• ISSB will be releasing the finalized versions of the first global standards for sustainability and climate-related reporting (IFRS S1 and IFRS S2) in?June?of this year or end of Q2 2023?—?according to the IFRS head, Erikki Liikanen?

CSRD

• June 12: EU Commission Eases Sustainability Rules, "The most significant amendments are proposals to ease the burden on smaller companies and first-time reporters by extending the phase-in times for some key sustainability factors such as Scope 3 value chain emissions, and rules enabling all companies to focus specifically on material sustainability factors."
• The release of sector-specific European Sustainability Reporting Standards (ESRS) will be delayed by one year, according to European Financial Reporting Advisory Group (EFRAG).
• ?EFRAG Update?for March 2023
• Europe’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs) each announced the?release of their opinions?on the first set of draft European Sustainability Reporting Standards.
• The?European Commission?re-confirmed that it will publish its regulatory proposal on ESG ratings on?June 13, 2023.
• European Financial Reporting Advisory Group (EFRAG) published its?update for January 2023, reporting on the work that has begun to develop the ESRS for listed small and medium enterprises (SME) and small and noncomplex financial institutions and captive insurances and re-insurances. CSRD and ESRS are aiming to bring smaller companies – both listed and private – into the fold, which is important to keep an eye on.

General?Corporate Reporting

SBTi?(Science Based Targets Initiative)

• The Science Based Targets initiative (SBTi) has updated?eight of its key resources?that enable companies and financial institutions to set and commit to setting science-based emission reduction targets. (April 23)
• The SBTI has launched?new guidance?for investors to support in identifying the overlaps of the SBTi Financial Institutions (FIs) framework, and Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This will "support enhanced coordination between financial institutions science-based target setting and climate-related financial disclosures".

SASB

• Future of the SASB Standards: What you need to know for 2023 disclosure. The ISSB recently made several decisions that further clarify the role and evolution of the SASB Standards. The ISSB confirmed that industry-specific disclosures are required and, in the absence of specific IFRS Sustainability Disclosure Standards, companies must consider the SASB Standards to identify sustainability-related risks, opportunities, and appropriate metrics.

GRESB

• As a reminder, the deadline to complete the GRESB Assessments is?July 1
• Subscribe to the GRESB Linkedin Newsletter?here >>?and read the?latest?edition for GRESB assessment updates for June 2023

Notable News

Articles on Climate & the Environment

• The Upper Atmosphere Is Cooling, Prompting New Climate Concerns, Wired. "Scientists are worried about the effect this change could have on orbiting satellites, the ozone layer, and Earth’s weather."
• Global greenhouse gas emissions at all-time high, study finds, The Guardian.
• Canada wildfires: Will they change how people think about climate change?
• Blue economy: how business leaders and scientists are improving ocean health, World Economic Forum.
• Climate Crisis Is on Track to Push One-Third of Humanity Out of Its Most Livable Environment

Articles on Corporate Sustainability, Regulation, & Global Events

• CSRD, CSDDD, ESRS and more: A cheat sheet of EU sustainability regulations, GreenBiz.
• EU Commission Eases Sustainability Reporting Rules, ESG Today. "The most significant amendments are proposals to ease the burden on smaller companies and first-time reporters by extending the phase-in times for some key sustainability factors such as Scope 3 value chain emissions, and rules enabling all companies to focus specifically on material sustainability factors."
• Why the U.S. Electric Grid Isn’t Ready for the Energy Transition, NY Times.
• Companies Quiet Diversity and Sustainability Talk Amid Culture War Boycotts, WSJ.

Insightful Reports

This year’s edition of the?World Energy Investment?provides a full update on the investment picture in 2022 and an initial reading of the emerging picture for 2023.

IBM's recent ESG global survey?covered more than 20,000 consumers and +2,500 executives with a focus on their sustainability preferences when making employment and purchase decisions.

Ember's Global Electricity Review 2023. The report analyzed electricity data from countries representing 93% of global power demand and found that electricity produced in 2022 was the cleanest ever. Solar and wind represented 12% of global electricity production, up from 10% in 2021, and all clean energy, including hydro and nuclear, made up a record 39%.

After years of work, involving hundreds of researchers from around the world, the Intergovernmental Panel on Climate Change (IPCC), has published a synthesis report on the latest?Climate Change?science this week.?Intergovernmental Panel on Climate Change’s (IPCC)?Sixth Assessment Report (AR6)

The 2023 Climate Risk Landscape Report, by the UN Environment Program. It highlights the latest developments in the rapidly evolving climate tool marketplace, featuring over 3 dozen tools for physical and transition risk as well as climate alignment

CDPs latest?Non Disclosure Campaign: 2022 Results Report

Norton Rose Fulbright’s?2023 Annual Litigation Trends Survey?indicates that environmental, social, and governance (ESG) concerns are growing.?

WatchWire Resources:

Though waste is easy to produce and inevitable in modern society, it is not so easy to manage.?Three key goals that organizations should aim for when it comes to efficient waste management are greater sustainability, economic benefits, and regulatory compliance.

Our new?Guide to Sustainable Waste Management, Recycling, and Reporting?aims to demystify the complexities surrounding corporate waste management and provide you with a comprehensive roadmap to navigating this vital aspect of sustainability.

This guide addresses:

• The Importance of Waste Management and Recycling
• Trends in Waste Management
• The Ins and Outs of Waste Management and Forms of Recycling
• How to Optimize Waste Management and Reporting
• Best Practices for Managing Waste Data?

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