What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. 80% OF COMPANIES NOT IN SCOPE FOR CSRD INTEND TO COMPLY
This might be a surprise to some, but the 2024 ESG Practitioner Survey found that 80% of companies who are not in scope for CSRD are still intending to comply.
Why would a company choose to comply with the regulations, when it is so hard to do so? The answer lies in market expectations.
CSRD was one of the first regulatory mandates requiring ESG reporting with third-party assurance. It was followed by similar standards in the U.S. and around the world. Beyond compliance, it is a new global norm.
88% of practitioners say that a strong ESG reporting program is a competitive advantage. That’s the reason why companies are volunteering to comply.
To download a copy of Future Planet's CSRD Implementation Guide, click here.
Reference: https://start.futureplanet.com/navigating-corporate-sustainability-reporting-directive-csrd
2. CONFLUENCE OF ESG STANDARDS AS ISSB AND CSRD ALIGN
While many companies see ESG reporting as a compliance headache, others see the value of its guidance to protect companies, people and planet. An example of where that protection is required is in story #1.
A single global standard would be much easier for companies to follow. Then they could measure, report and improve on their sustainability journey.
We are therefore grateful for new ESRS-ISSB interoperability guidance, a document illustrating the alignment for companies complying with ISSB and CSRD. It makes sense.
The ISSB will eventually embrace full double materiality, so companies should start with CSRD and pare back from there.
To download a copy of Future Planet's CSRD Implementation Guide, click here.
Reference: https://tinyurl.com/4zdxjprd
3. MAYDAY, MAYDAY, OVERSHOOT DAY FOR EU, IRELAND, GERMANY
If everyone in the world had consumed as much as EU residents have over the last four months, humanity would have exhausted the planet's natural resources available for the entire year.
The EU accounts for just 7% of the world’s population – but we would need three planets to satisfy our demand if everyone on Earth lived like Europeans. Our planet simply cannot afford Europe’s consumption habits. This is unsustainable and irresponsible.
Germany’s and Ireland’s overshoot day was May 2; not as bad as the United States – March 14, Belgium – March 23, or the Netherlands – April 1, but still shocking.
If we don’t reduce consumption, we are done for!
Reference: https://tinyurl.com/35rrt5e8
4. AMNESTY OBJECTS TO SHELL WALKING AWAY FROM NIGER DELTA
Civil society groups, led by Amnesty International, are calling on the Nigerian government to block Shell Plc’s proposed sale of its onshore oil business in Nigeria.
The $1.3billion deal aims to allow Shell to exit operations in the challenging Niger Delta. However, the groups argues that the sale should not proceed until there is an assessment of environmental pollution around the assets, and funds for clean-up.
There is now a substantial risk Shell will walk away with billions of dollars, leaving those already harmed without remedy and facing continued abuse and harm to their health.
Shell must not be permitted to avoid its responsibilities for cleaning up and remedying its legacy of pollution in the area.
Reference: https://nairametrics.com/2024/04/15/amnesty-international-says-nigeria-must-block-shell-asset-sale-now/
5. EUROPEAN LEADERS DEBATE THE FUTURE OF THE GREEN DEAL
A wise man once told me that nothing worth having is easy. That is certainly true when it comes to eco- laws that must deal with the right-wing of global legislatures.
Ursula von der Leyen’s Green Deal, which set ambitious targets for biodiversity and emissions reduction, is facing new obstacles. It looks like the hard-right European Conservatives and Reformists (ECR) will make the biggest gains in June’s European parliament elections.
Nicola Procaccini, co-leader of the ECR has said: “the Green Deal was crazy and sort of a religion”. Not encouraging.
Von der Leyen will likely need his support to keep her dream and presidency alive. We can expect more dilution and compromise.
Reference: https://www.ft.com/content/4e24640e-f0e7-4f82-b609-b32895118cb9
6. JOHNSON & JOHNSON $6.5B TALC CANCER LAWSUIT SETTLEMENT
When you see cases like this you begin to connect ESG regulations with real lives. One of the ESRS standards, ESRS: S4, relates to the protection of consumers and end-users, and is designed to govern issues like this.
Johnson & Johnson (J&J) is offering $6.5B to settle tens of thousands of lawsuits that allege its baby powder and other talcum powder products were contaminated with asbestos and caused ovarian cancer.
J&J says that its products do not contain asbestos and do not cause cancer.
Under ESRS S4, companies must disclose how they identify and address potential safety hazards associated with their products.
Seems like it makes for a safer world.
Reference: https://tinyurl.com/mwz8x9fc
7. SOUTHERN BRAZIL HIT BY WORST FLOODING IN 80 YEARS
Heavy rains in the Brazilian state of Rio Grande do Sul already killed 39 people, as record-breaking floods devastated cities and forced thousands to leave their homes.
It was the fourth such environmental disaster in a year. In some cities, water levels were at their highest since records began nearly 150 years ago.
The recorded deaths are only a start. The floods in Pakistan (2022), and Libya (2023), took many lives during the actual flooding, but an order of magnitude more from sickness, disease and hunger thereafter.
This is another humanitarian disaster caused by climate change, which is largely due to overconsumption in the 'Global North'.
It might be far away, but we are culpable.
Reference: https://apnews.com/article/brazil-floods-rio-grande-do-sul-climate-change-03c73512eae11f3799af19dfcdad54c3
8. EU LAUNCHES ACTION AGAINST 20 AIRLINES FOR GREENWASHING
In its action against the as yet unnamed 20 airlines, the European Commission has emphasised the need for accurate consumer information, not “vague or false claims" to avoid misleading “greenwashing” practices.
The EC and national consumer authorities with Belgian, Dutch, Norwegian and Spanish watchdogs, identified airlines that have made false or misleading statements about the environmental benefits of their companies.
Airlines needed to make clear to what extent claims that a flight’s CO2 emissions could be offset by climate projects or sustainable fuels can be substantiated by scientific evidence.
Last month, a Dutch court ruled that KLM had misled customers with an advertising campaign aimed at improving the company’s environmental image.
Reference: https://www.aljazeera.com/news/2024/4/30/eu-launches-action-against-20-airlines-for-greenwashing
9. PLASTIC TREATY NEGOTIATORS FAIL TO GET PAST RECYCLING
This is so disappointing.
Hopes for a new global treaty to include limits on rocketing production of plastic have faded after government negotiators sidestepped the issue at the UN talks in Ottawa, Canada.
While some governments pushed for measures to reduce plastic production – which is expected to nearly double in G20 countries by mid-century – the major oil and gas-producing states, like US, Russia, Saudi Arabia and Iran, pushed for an emphasis on recycling over producing less.
Plastics are made from oil and gas. Fossil fuel companies are betting that as demand for oil and gas for energy falls, they can sell more to plastic manufacturers instead.
We need all forms of fossil fuel reduced.
Reference: https://tinyurl.com/8k5cutvv
10. SIX BRANDS ACCOUNT FOR MORE THAN 20% OF PLASTIC POLLUTION
A new analysis has found that less than 60 global companies are responsible for more than half of the world's plastic pollution, with six brands collectively accounting for 24% of the branded plastic items uncovered.
The study was based on analysis of more than 1,870,000 items of plastic waste across 84 countries. The highest number of audits were conducted in Indonesia, the US, Tanzania, Thailand, Malaysia and Democratic Republic of Congo.
Six companies contributed a quarter of the branded plastic. These brands include Coca-Cola Company (11%), PepsiCo (5%), Nestlé (3%), Danone (3%), Altria and Philip Morris International (2%).
You can make your own choices.
Reference: https://www.edie.net/study-finds-that-less-than-60-companies-drive-more-than-half-of-global-plastic-pollution
11. RECORD FLOODS AND LANDSLIDES IN KENYA KILL AT LEAST 188
Flooding and landslides across Kenya have killed 188+ people, with dozens missing. One flash flood on Monday killed at least 48 in the town of Mai Mahiu in central Kenya.
The flooding has taken out bridges and roads while destroying homes and infrastructure. A heavy downpour caused a river to overflow its banks in the Maasai Mara wildlife reserve, stranding many people, including almost 100 tourists.
“Access to the Mara is a nightmare and the people stuck there don’t have an exit route,” said Stephen Nakola, administrator of Narok West, who said there were likely to be waterborne diseases.
Reference: https://www.ecowatch.com/kenya-flooding-landslides-2024.html
12. SUDDEN RETREAT FROM EV NETWORK BY TESLA CAUSES U.S. CONCERN
Tesla’s abrupt decision to lay off its EV charging team and reduce its investments in public charging is a blow to the U.S. network, which has long relied on Elon Musk to build the bulk of the country’s fast chargers.
Tesla owns and operates nearly two-thirds of the fast-charging ports in the United States and deploys more chargers each year than all other providers combined.
A former Tesla employee, said he learned in the middle of the night that “the Tesla Charging org is no more”. Roughly 500 people on the team were laid off.
The layoff notice arrived at 12:30am PT, while many workers were asleep. Workers awoke to see their jobs had been cut.
Not a good day for EV momentum.
Reference: https://www.washingtonpost.com/business/2024/05/03/tesla-charging-us-network/
