What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. 85% of companies grow sustainability investments
C-suite executives are worried about risks from climate change – 70% expect it to have a high impact on their strategy / operations – but are also realising business benefits, so 85% are investing more in sustainability according to a new report from Deloitte.
Changing consumption preferences, regulations aimed at decreasing emissions or environmental impacts, and operational impacts from climate-related disasters or weather events are the key areas of concern.
However, companies also see opportunities to achieve direct benefits to their businesses from sustainability-related investments, such as supply chain efficiency and resilience and better operating margins.
This is exactly what we see at Future Planet; risk mitigation and benefits being delivered.
2. DRAGHI REPORT MAKES DANGEROUS COMMENTS ABOUT ESG RULES
“The Future of European Competitiveness” report from former Italian PM Mario Draghi says that red tape is causing Europe’s stagnation: “There are too many barriers to scale up and commercialise innovation.”
The report calls for investment in climate tech and for simplifying rules - including the CSRD, CSDDD, CBAM, saying they are “a major source of regulatory burden, magnified by a lack of guidance”.
We don’t think he is paying attention. This stance undermines Europe’s sustainability professionals and will embolden those who want to stop climate regulation.
CSRD, CSDDD, CBAM and other frameworks are how we address unsustainable production and consumption patterns in Europe.
3. NIKE INVESTORS VOTE DOWN SUPPLY CHAIN DUE DILIGENCE MOTION
At Nike's AGM last week, investors rejected proposals on human rights due diligence.
The proposals asked the board to report on the supply chain effectiveness and to disclose an assessment of implementing worker-driven social responsibility principles throughout its supply chain.
Nike's board recommended that shareholders vote against both proxy resolutions, arguing they are "ineffective and unnecessary" as the company already has "robust controls" in place over labour issues in its supply chain.
The company was also asked to explain why it has not yet signed the Pakistan Accord, a commitment for clothing companies to sign health and safety agreements with workers' unions, already signed by Adidas and Puma.
Just do it! (Obvious I know, but maybe not.)
4.IF YOU'RE GOING TO COP IN AZERBAIJAN, LAND BORDERS ARE CLOSED
Azerbaijan's ongoing closure of its land borders will impact travel, for individuals planning the COP (Conference of the Parties) climate summit. The borders have been closed since March 2020, initially due to the COVID-19 pandemic, but now due to security.
The land borders with Russia, Georgia, Turkey, and Iran have been closed for most individuals for over four years.
For travellers heading to COP, the closure means that overland routes from neighbouring countries are unavailable.
Things may change in October, but based on the current status, attendees need to rely solely on air travel to enter Azerbaijan, which can be more costly and less convenient, and certainly more carbon intensive.
5. ICC CONSIDERS MAKING ECOCIDE AN INTERNATIONAL CRIME
Ecocide was formally introduced to the International Criminal Court (ICC) this month.
‘Ecocide’, as proposed by Vanuatu, Fiji and Samoa, is defined as “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts”.
Instances of ecocide could include large oil or chemical spills, the clearance of forests or ancient woodland at scale, or the spilling of microplastic nurdles in large quantities.
The ICC now has the power to decide whether ecocide should be considered as a crime under international law. If the answer is yes, ecocide will sit alongside offences including war crimes and genocide. Seems right to me.
6. THE HAGUE IS FIRST CITY TO BAN FOSSIL FUEL-RELATED ADS
The Hague has become the first city in the world to pass a law banning advertisements promoting fossil fuel products and climate-busting services. The law spells the end of ads for petrol and diesel, aviation and cruise ships in the streets of the Dutch city, including on billboards and bus shelters.
In May Edinburgh council banned ad for fossil fuel companies, airlines, airports, fossil fuel-powered cars, cruise ships and arms on council-owned advertising spaces.
The Hague’s ban, which has taken two years to pass, is legally binding. It outlaws fossil fuel products and services with a high carbon footprint, but it does not cover political advertising by the fossil fuel industry or adverts that promote a general brand.
7. AUSTRALIA PASSES MANDATORY CLIMATE REPORTING BILL
Australia passed its climate reporting bill. It requires public and large private companies to report climate risks and opportunities and Scope 1, 2, and 3 emissions.
Largely aligned with the International Sustainability Standards Board's (ISSB) climate related standards, the phases are:
- Jan 1st, 2025: Large companies with 500+ employees, over $500m+ or assets over $1B.
- July 1st, 2026: Medium companies with 250+ employees, $200m+ revenue, or $5m assets.
- July 1st, 2027: Smaller companies with 100+ employees, $50m+ revenue, or $25m assets.
Companies will be given an additional year to report on their Scope 3 emissions.
This pattern that should be familiar by now, 2025 is the kick-off year. Time to start.
8. EU CONSIDERS MARKET SYSTEM TO AVOID ECOSYSTEM COLLAPSE
According to Ursula von der Leyen, Europe is considering a market-based system to encourage farmers and industry to conserve nature and restore lost biodiversity by putting a price on ecosystems.
“We need new financial tools to compensate farmers for the extra costs of sustainability and compensate them for taking care of the soil, the land, the water and the air.”
Von der Leyen hinted at a market-based system of ‘nature credits’ that could also be applied beyond the agricultural sector.
“Take a water company for which the health of a spring is a vital asset, or a fruit company that relies on pollinators. They could use nature's credits to reward those who provide ecosystem services so we can create a market for restoring our planet.”
9. SEC FINES COFFEE MAKER OVER CLAIMS OF COFFEE POD RECYCLABILITY
The U.S. Securities and Exchange Commission (SEC) charged Keurig Dr Pepper Inc. over claims that its coffee pods could be recycled, despite not being accepted by U.S. recycling companies.
The SEC said that Keurig has agreed to pay a civil penalty of $1.5m to settle, without admitting or denying the charges.
Keurig had stated in its FY 2019 and 2020 annual reports that testing with recycling facilities indicated that its K-Cup coffee pods “can be effectively recycled.” They failed to disclose that two of the largest U.S. recycling companies “expressed significant concerns” to the company at the time and said that they did not intend to accept the pods for recycling.
Naughty coffee maker.
10. CLIMATE CHANGE MADE THE EARTH VIBRATE FOR 9 DAYS
Scientists were baffled by seismic activity all over the globe for nine days last year.
The mysterious vibrations were caused by a massive climate change-triggered landslide.
A 1.2km-high mountain peak collapsed into Greenland’s remote Dickson Fjord. A glacier at the foot of the mountain melted and was unable to hold up the rock face above it.
25m cubic metres of rock / ice crashed into the narrow fjord. The water splashed 200m in the air generating a 110m high wave.
The Arctic is warming 4X the rest of the planet and Greenland’s ice cap is losing an estimated 30 million tonnes of ice an hour.
These fjords are visited by Arctic cruise ships. Fortunately, none were there when this happened. It would have been tragic.
