What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. MCDONALD’S VOTE TO CURB ANTIBIOTICS USE IN MEAT DEFEATED
The majority of shareholders at fast food chain McDonald’s voted against a resolution to curb the use of antibiotics in its industrial meat production – despite concerns raised.
McDonald’s is the largest purchaser of beef and pork globally, and its extensive use of antibiotics in industrial meat production poses a threat to public health, according to commentators. Also, the overuse of antibiotics may contribute to antibiotic-resistant bacteria, which impacts the effectiveness of drugs in treating infections.
However, at McDonald’s AGM on May 29, just 15% voted in favour of the resolution, to curb use of antibiotics, a 2% decrease from last year where the resolution was also proposed.
We're not lovin’ it!
2. NO MORE FOSSIL FUELS NEEDED BASED ON PREDICTED DEMAND
A study from UCL and IISD has found existing fossil fuel projects are sufficient to meet future energy demands. It argues that stopping new fossil fuel schemes is crucial for countries to achieve their climate goals.
It suggests countries should ban new schemes, as this is easier, politically, economically and legally, than closing operational sites early.
The researchers analysed projected future global demand for oil and gas production, and for coal- and gas-fired power, under scenarios that limit climate change to 1.5C. They found sufficient existing capacity and say new fossil fuel projects are not needed.
Their analysis also found that no new coal- and gas-fired power generation was needed.
Reference: https://renews.biz/93497/study-calls-for-ban-on-new-fossil-fuel-plants/
3. 75% OF COMPANIES DON’T WANT AN INCREASE IN CARBON OFFSETS
In a study that should influence the current SBTi carbon offset saga, 75% of companies suggest that they do not support increased use of carbon offsets as the path to net zero.
The edie study found that most companies do not believe usage of offsets should be increased under official guidance.
Potential changes are set to come about through work to update the Net-Zero Standard, which requires companies to pledge to reduce absolute emissions across all scopes by 90% by 2050 at the latest.
Credits are currently permitted to address no more than 10% of Scope 3 emissions.
This ”no more offsets” attitude is welcome and shows more recognition by businesses of the challenges we face to cool the planet.
Reference: https://tinyurl.com/34hysekf
4. ECB IMPOSES FINES ON BANKS FOR CLIMATE FAILURES
The European Central Bank is set to fine several lenders for their protracted failure to address the impact of climate change. The delinquent lenders face penalties having missed deadlines set by the ECB for assessing their exposure to climate risks.
The fines rack up every day and can amount to as much as 5% of a lender’s daily average revenue. For a bank with annual revenue of €10B, penalties could be €1.4m per day.
Regulations say banks must look at material risk and reflect that in their capital reserves. Banks would need to understand drivers of climate and environmental-related risk and how they might be affected.
The ECB is pushing banks to manage their climate risk much more rigorously than their Federal Reserve counterparts in the U.S.
Reference: https://www.bloomberg.com/news/articles/2024-05-29/ecb-to-impose-first-ever-fines-on-banks-for-climate-failures
5. EFRAG RELEASES FINAL ESRS IMPLEMENTATION GUIDANCE DOCUMENTS
The European Financial Reporting Advisory Group (EFRAG) released three ESRS Implementation Guidance documents, covering Materiality Assessment, Value Chain and ESRD Datapoints.
If you are not involved in the Corporate Sustainability Reporting Directive (CSRD), this might not be of interest to you – but if you care about CSRD this is very important.
With these documents EFRAG aims to help those who are implementing ESRS/CSRD to focus on relevant aspects of the standards and identify critical reporting needs.
Disclaimer: My company, Future Planet, provides AI software that embeds the ESRS guidance in systems to ease the burden of CSRD implementation, so this is very important to us and our customers.
Reference: https://efrag.org/news/public-524/Finalization-of-Three-EFRAG-ESRS-IG-Documents-(EFRAG-IG-1-to-3)
6. EU ADOPTS RULES TO SLASH METHANE EMISSIONS
EU adopted (May 27) its first-ever rules to measure, report and verify methane emissions in the energy sector in a bid to slash the volume of these short-lived air pollutants, known to be up to 30 times more potent than carbon dioxide (CO2).
Following an almost unanimous vote, opposed by Hungary, energy operators will need to comply, as of 2025, to ensure mitigation measures, such as detecting and repairing methane leaks, and measuring emissions at source level.
They will also be required to draw up monitoring reports that will be checked by independent accredited verifiers, as well as carry out surveys of methane leaks in different types of infrastructures.
Reference: https://www.euronews.com/green/2024/05/27/member-states-green-light-new-rules-to-slash-methane-emissions
7. EU CALLS FOR REPORTS FROM SMES TO AVOID GREENWASHING
European Securities and Markets Authority (ESMA) is looking for market-listed small and medium-sized (SME) businesses to report on sustainability-related opportunities and positive impacts, to avoid greenwashing.
This is part of ESMA’s response to EFRAG on its proposed ESRS for small and medium enterprises under CSRD.
ESMA: “There is, in fact, a risk that positive claims on sustainability impacts and opportunities will be presented outside of the sustainability statement and … will not be subject to assurance and compliance with specific reporting requirements. “
While CSRD only applies formally to large entities today, it is already impacting on the business of most companies.
Reference: https://tinyurl.com/5yj2bfnc
8. MILLIONS IN MEXICO CITY TO RUN OUT OF WATER BY JUNE 26
Water scarcity has long been an issue in Mexico City, with the brunt of the shortages happening in low-income neighbourhoods. But recently, wealthier residents have also been running out of water as hot temp, low rainfall and poor infrastructure have created a crisis across the sprawling metropolis.
Mexico City gets about a quarter of its water from the Cutzamala system, – a series of reservoirs, water treatment plants and canals and tunnels – which is running dry.
Some say the system could be unable to provide water by June 26, known as “Day Zero” in the metropolitan area of 22 million.
Scientists say rainfall could avert that disaster. However, as of May 21, the Cutzamala system is at 28% of capacity.
Reference: https://www.washingtonpost.com/climate-environment/2024/05/25/mexico-city-water-day-zero/
9. IBM LOSES NORWEGIAN INVESTOR OVER HUMAN RIGHTS IN ISRAEL
Norway’s second largest asset manager has divested from IBM over the role its biometric technology plays in maintaining Israeli settlements, in a move that could set a precedent for other European investors.
In its sustainability report, Storebrand said IBM was providing biometric databases to the Israeli government that were being “used to implement apartheid.”
Storebrand says it tried to “enter a dialogue” with IBM about its role, but the tech company was “not willing to discuss” the issue.
“We believe the company contributes to maintaining illegal settlements on the West Bank – and thus contributes to violations of human rights.”
Other companies should take note.
Reference: https://tinyurl.com/5t3vv8dw
10. 33 DEATHS RECORDED IN 52.9C BLISTERING HEATWAVE IN INDIA
At least 33 people, including election officials on duty, died of suspected heatstroke in India's states of Bihar, Uttar Pradesh and Odisha, and the heatwave in the region is expected to continue.
India has been experiencing a blisteringly hot summer and capital Delhi recorded the country's highest ever temp at 52.9C this week, though the weather station sensors are being checked.
Making matters worse, the city is in a severe water shortage, with reports of desperate residents chasing after water tankers.
A heat wave has gripped much of South Asia since April, and researchers say human-caused climate change is making the heat wave about 30 times more likely.
Reference: https://tinyurl.com/3fcwaxe8
11. RIVERS IN ALASKA ARE TURNING ORANGE FROM PERMAFROST METALS
A new study says that rivers and streams in Alaska are changing colour, from clear blue to a rusty orange, because of the toxic metals released by thawing permafrost.
Researchers conducted tests at 75 locations in the waterways of Alaska’s Brooks Range. The rivers and streams appeared to rust and became cloudy and orange over the past five to 10 years, according to the study. The discoloration is caused by metals such as iron, zinc, copper, and lead – as permafrost thaws and exposes the waterways to the toxic minerals locked away for thousands of years.
When permafrost melts, the ground becomes unstable and can cause landslides, floods, and coastal erosion. The buckling earth can damage buildings, roads, power lines, and other infrastructure.
Reference: https://edition.cnn.com/2024/05/29/climate/orange-rivers-permafrost-alaska
12. PAPUA NEW GUINEA LANDSLIDE BURIES UP TO 2000 PEOPLE
A deadly landslide which villagers in Papua New Guinea say struck like "an exploding bomb" may have buried more than 2,000 people alive. Exact casualty figures for the disaster, which tore through the village, have been difficult to establish.
Attempts to rescue survivors have been hindered by blocked access, a lack of adequate equipment and rubble 10m deep. Hopes are fading for any survivors that were swept up in in the Enga province disaster.
"I have 18 of my family members buried under the debris and soil I am standing on.”
"The ground is also quite unstable at the moment, and it is at risk of triggering further landslides.”
Heartbreaking.
Reference: https://edition.cnn.com/2024/05/29/climate/orange-rivers-permafrost-alaska
