What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. UK SHUTS DOWN ITS LAST COAL-FIRED POWER PLANT
The U.K.'s last coal-fired power plant closed permanently this week — bringing an end to 140 years of reliance on the fossil fuel to generate electricity in Britain.
The Ratcliffe-on-Soar Power Station, closed its doors for the last time, having been generating electricity since 1967.
The move sees the U.K. make good on one of the environmental pledges to achieve net-zero GHGs by 2050. Coal is one of most damaging fossil fuels for the environment, as it releases more CO2 than oil or gas.
Thirteen countries have already phased out coal as a source of energy, but Britain will be the only member of the G7 to do so thus far.
This is all very good news.
Reference: https://www.cbsnews.com/news/united-kingdom-coal-fired-power-station-last-plant-closes
2. EU DELAYS START DATE FOR DEFORESTATION REGULATION
In a major blow for the world's forests and the fight against climate change and biodiversity loss, the EU has plans for a one-year delay for its anti-deforestation regulations, bowing to pressure from governments, and businesses.
The decision, which requires approval from the European Parliament and Member States, would push back the compliance deadline for large companies to the end of 2025 and for smaller businesses to June 2026.
While the EU has also (finally) published guidance on how to apply the regulations, this announcement means allowing deforestation to continue for another year, when action is desperately needed to stop it.
As governments around the world gear up for COP 29, this news sends a signal that the EU is not living up to its climate commitments.
Reference: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5009?
3. THE MAJORITY OF EU MEMBER STATES YET TO ADOPT CSRD
The European Commission has announced that it has sent letters to 17 EU member states, opening infringement proceedings with them over their failure to communicate that they have fully transposed the new Corporate Sustainability Reporting Directive (CSRD) into their national laws.
The uncertainty is causing huge confusion and expense for companies.
States had until July 6, 2024 to transpose the CSRD into laws, but the Commission said it is still urging 17 states to do so. The 17 member states have two months from the date the Commission sends the letters to respond and complete the transposition. After that, the Commission may issue a reasoned opinion and may then refer the matter to the Court of Justice for review and punishment.
Reference: https://ec.europa.eu/commission/presscorner/detail/en/inf_24_4661
4. CLIMATE SCIENTISTS ASK FOR PAUSE ON UK CARBON CAPTURE
Leading climate scientists are urging the UK government to pause plans for a £1bn spend in unproven carbon capture, usage and storage (CCUS) technologies.
They say this move will lock the UK into fossil fuel production for generations, will result in huge upstream emissions from methane leaks, transport and processing of liquefied natural gas (LNG) from the US, and is based on an approach relying on CCUS technology that has been abandoned in many similar projects around the world.
The money could be invested in things we know work, such as insulating homes, renewable energy and public transport.
However, the fossil fuel industry seems to have the UK Government’s ear on this one.
5. CALIFORNIA FINALLY SIGNS UP TO SCOPE 1, 2 AND 3 DISCLOSURES
This has been signalled here for months now, but SB 219 is now signed, meaning companies doing business in California need to disclose Scope 1, 2 and 3 emissions. CA's climate rules could be the framework for the nation. NY, ILL, MN and WA are looking at similar rules.
The big news here is that despite requests from the Governor to delay - the original timeline is maintained. Large companies will have to report assured Scope 1 and 2 emissions and climate risks in 2026 and Scope 3 the year after.
Reporting fees that were in in the original bills have been eliminated, and final timing for Scope 3 reporting will be decided by the California Air Resources Board (CARB). The only hurdle left is a federal lawsuit, (of course) which starts on October 16th.
Reference: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?
6. ASDA PUTS INCENTIVES TO SUPPLIERS FOR ESG PERFORMANCE
UK-based supermarket retailer Asda announced a new sustainable supply chain finance scheme to encourage sustainable practices through financial incentives.
The finance program follows a commitment by Asda to set science-based emissions targets across its value chain. Scope 3 emissions accounts for 98% of the company’s carbon footprint, most from Asda’s supply chain.
Asda will offer 250+ suppliers enhanced rates of financing, based on disclosure of ESG data, target setting, and acting on sustainability goals. Suppliers performing strongly will be rewarded with the most preferential terms.
In addition to a primary focus on decarbonization, the scoring will also consider other ESG elements such as social initiatives.
Reference: https://www.esgtoday.com/
7. ACTIVISTS WHO THREW SOUP AT VAN GOGH GET TWO YEARS IN PRISON
Yes, really. Two years in prison for throwing soup on the protective glass casing of Van Gogh’s famous Sunflowers painting.
In October of 2022, Phoebe Plummer, then 21, and Anna Holland, then 20, threw a can of soup at the painting. Both activists, who are part of the group Just Stop Oil (JSO), were sentenced last week to two years in jail.
Just an hour later, three more activists again threw tomato soup over the painting.
Ludi Simpson, 71, who took part, said: “We will be held accountable for our actions today, and we will face the full force of the law. When will the fossil fuel executives and the politicians they’ve bought be held accountable for the criminal damage that they are imposing on every living thing?”
Reference: https://bit.ly/3NfnMX2
8. EU OFFICIAL URGES: DON’T OVER ENGINEER CSRD REPORTING
This really should not have to be said, but because CSRD is new, many companies – and in some cases their advisors – don’t know where to start or stop.
Amid the angst around CSRD, EU Official Tom Dodd said the "single most important message at the moment is: let's make sure that we implement these standards in a proportionate and in a pragmatic way”.
CSRD might seem complicated, but it is just a new way of looking at things. And because it is new, and in many cases time-sensitive, it can get out of control if not guided by common sense and experience.
Think of it like you think about your financial reporting: get a system in place, get advice from knowledgeable advisors – this is of strategic importance – then operationalise.
Reference: https://bit.ly/4eTBOtc
9. DAMNING REPORT ON IRELAND’S CLIMATE ACTIONS
It saddens me to report that Ireland is failing the key tests of a healthy environment, putting future prosperity and public wellbeing under threat. This is according to a hard-hitting new report.
The latest ‘State of the Environment’ report by the Environmental Protection Agency (EPA) says care for the country’s air, water, soils, landscapes, wildlife and climate is “entirely inadequate”. It warns that the overall outlook in most areas is at best “uncertain” and “negative” for the others.
Ireland’s spending on environmental protection is less than half EU average.
There is likely to be an election in Ireland in November. Question your political candidates on their climate related policies. Advocate for Ireland’s future. 🇮🇪
Reference: https://bit.ly/3TXUOP4
9. MAJOR CONSTRUCTION FIRM POSTPONES NET-ZERO DEADLINE
Construction is one of the main contributors to emissions, but many construction firms are making real progress in reducing their environmental impact. So, it is disappointing to see Balfour Beatty’s net-zero dates slip.
The UK’s biggest contractor has said it now hopes to negate scope 1 and 2 emissions by 2045, five years later than planned. Its target for scope 3 emissions is now 2050 – a full decade after the original target.
I don’t usually do this, but it may be valuable to companies in the construction sector. On Tuesday 8th October, Future Planet is hosting a webinar entitled Building For The Future: CSRD in the CSRD in Construction Industry.
We also have an eBook entitled Inspiring Sustainability in the Construction Industry, which you can download here.
We need Big Construction to do better.
Reference: https://www.constructionnews.co.uk/sustainability/balfour-lowers-sights-on-carbon-emissions-in-new-strategy-07-06-2024/
