What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. US ELECTION CAUSES EU CLIMATE POLITICIANS TO WORRY
As the U.S. election nears, European climate activists and politicians are getting worried. “The looming menace of a second Trump administration could cast a big shadow.”
Europe just about held it together during Trump’s first term after he took the U.S. out of the 2015 Paris Agreement. “This time it could be more severe because he’s vowed to also leave the whole [UNFCCC] convention.”
One EU official, who was involved with COP negotiations during the Trump years, said the EU’s response will need to be more assertive than it was last time.
“I have the feeling that now there may be an effort to actively undermine the Paris agreement, which we didn’t see last time. The EU will have to fight against that.”
2. GOOGLE TURNS TO NUCLEAR TO POWER AI DATA CENTRES
Google has signed a deal to use small nuclear reactors to generate the vast amounts of energy needed to power its AI data centres.
It will start using the first reactor this decade and bring more online by 2035. No detail was provided about where the plants will be built.
Tech is increasingly turning to nuclear sources of energy to supply the electricity used by the data centres that drive AI.
Last month, Microsoft reached a deal to restart operations at the Three Mile Island energy plant, the site of America's worst nuclear accident in 1979. In March, Amazon said it would buy a nuclear-powered data centre in the state of Pennsylvania.
We're not sure anyone is pausing to wonder whether all this power consumption for AI is a good thing.
3. IN SUPREME COURT WIN EPA CAN LIMIT POWER PLANT EMISSIONS
The Supreme Court last week allowed the Environmental Protection Agency to move ahead with its plans to limit carbon emissions by power plants.
The decision, which was temporary, centred on a major regulation that the Biden administration enacted in April that seeks to reduce pollution from coal. Coal emits more carbon dioxide than any other fossil fuel.
The move was part of the Biden administration’s promise to curb pollution from such emissions by 2050.
More than two dozen states challenged the regulation, arguing that the government had failed to prove that the techniques used to control emissions would curtail them to the degree that the government is seeking.
4. WATER CRISIS PUTS HALF OF GLOBAL FOOD PRODUCTION AT RISK
Half the world’s food production will be at risk of failure in the next 25 years because of a rapidly accelerating water crisis.
The Global Commission on the Economics of Water says that half the world’s population already faces water scarcity.
Demand for fresh water will outstrip supply by 40% by the end of the decade, because the world’s water systems are being put under “unprecedented stress”, the report found.
The amount of water needed is much greater than thought. While 50L to 100L a day per person are needed for health and hygiene, about 4,000L is needed for nutrition and a dignified life. For most regions, that cannot be achieved locally, so people are dependent on trade – in food, clothing and consumer goods – to meet their needs.
5. EU PLANS TO STICK TO 2035 PLAN TO OUTLAW FOSSIL FUEL CARS
Brussels is sticking to its controversial plans for curbs on combustion engines in the EU from 2035, despite heavy pressure from the car industry to water down the incoming restrictions.
Answers prepared for the bloc’s climate chief Wopke Hoekstra for when he faces parliamentary hearings next month and seen by the Financial Times say the EU “cannot and should not roll back” its plan to outlaw the sale of new cars powered by fossil fuels.
The law, announced in 2021, has come under fire from Europe’s carmakers as they struggle with flagging electric vehicle sales and intense competition from Chinese manufacturers.
We need to stay the course.
6. TESLA IS A BIG PLAYER IN THE CARBON CREDITS MARKET
Elon Musk’s Tesla generated $1.79Bn from carbon credit sales last year, as revealed in their Q4 2023 and annual financial report. This brings its total earnings from such credits since 2009 to nearly $9Bn.
This revenue comes from trading regulatory credits to other automakers unable to meet emission regulations in US, Europe, and China. Tesla continues to profit from the need of its rivals to meet emissions standards. Since the EV giant incurs minimal additional costs to earn these credits, this is almost pure profit.
Total revenue from selling carbon credits in 2023 increased to $1.79Bn from $1.78Bn. In Q1 2024 the sale of these credits accounted for 38.6% of Tesla's net income.
That’s a lot for a business that is supposed to be focused on selling cars.
Reference: https://www.morningstar.com/stocks/electric-vehicle-outlook-hinges-more-than-just-election
7. COURT RULES AGAINST SHELL IN NIGERIAN POLLUTION CASE
The Court of Appeal has granted a landmark appeal in the claim of two Nigerian communities whose environment has been devastated by oil pollution, allegedly caused by Shell plc’s Nigerian subsidiary SPDC.
The appeal overturns a High Court ruling in March 2024, which would have made it nearly impossible for people to bring environmental claims involving multiple pollution incidents.
The Bille and Ogale communities say they’ve suffered around a 100 oil spills from Shell Nigeria’s infrastructure, devastating their land, waterways and drinking water.
The previous ruling said that the Bille and Ogale communities would have had to prove that Shell was responsible for 100% of the pollution if it was to be responsible for any!
8. STATE OF MINNESOTA TO BAN FOREVER CHEMICALS
Minnesota will soon take another step to restrict the use of "forever chemicals" in an expanded list of consumer goods as the state moves toward a virtual ban by 2032.
Per- and poly-fluoroalkyl substances, collectively known as PFAS, are chemicals that are tied to negative health effects in humans, including heightened risk of cancer and hormonal interference.
From Jan. 1, 2025, a new law will take effect that'll ban PFAS from 11 products ranging from cookware to cosmetics to bedding.
PFAS was invented by DuPont for cookware and patented as Teflon. But 3M - Minnesota Mining and Manufacturing Company – became its main manufacturer.
A ban like this is needed in the EU too.
Reference: https://phys.org/news/2024-09-minnesota-chemical-state-highlights-pfas.html
9. CLIMATE CHANGE NAMED AS THE #1 THREAT FACING THE WORLD
What do you consider to be the most significant risk to life on earth? If it’s climate change, you’re in a majority.
Research from Axa has shown that climate change is the leading concern for the general population and risk experts alike. Axa surveyed 23,000 people across the globe - 3,000 risk experts and 20,000 members of the public - to find out which 'future risks’ are most concerning.
The findings come after hurricanes Milton and Helene devastated parts of the US, resulting in more than 240 deaths and billions in financial losses, along with an ongoing drought in southern Africa which is leading to higher poverty.
The concern I have is that while many are worried, few take any mitigating actions.
