![Sister Act: Nuns push Wall Street for climate justice](https://blog.futureplanet.com/hubfs/nuns%203.png)
Sister Act: Nuns push Wall Street for climate justice
What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. NUNS PUSH WALL ST. FOR ENVIRONMENTAL JUSTICE
A congregation of nuns from New Jersey filed a shareholder resolution with Citibank on Indigenous rights and fossil fuel funding.
The nuns divested from fossil fuel assets in 2022 and they introduced a resolution on Citibank’s financing of companies that are building pipelines, LNG terminals and other fossil fuel projects on Indigenous lands.
The resolution failed at Citibank’s AGM for the third year in a row, receiving just 26% of the vote. But the nuns are not deterred.
Sister Susan Francois: “For 3 years in a row, support from investors for our resolution has remained steady at Citi. This is a clear message to the bank that human rights violations are bad for business.”
Bless you Sister.
2. EU ADOPTS CSDDD FOR ENVIRONMENTAL AND HUMAN RIGHTS
The Corporate Sustainability Due Diligence Directive (CSDDD) – a framework for doing business in the EU that mandates human rights and environmental considerations – has finally been passed. The May 24 vote, at 68%, was just over the minimum of 65%.
CSDDD requires due diligence processes, risk assessment and reporting for a company’s operations and its “chain of activities”.
Non-compliance can bring civil liability and financial penalties of up to 5% of a company's net worldwide turnover.
While it is aimed at companies with 1,000+ employees and turnover of €450m, the value chain inclusion means many more companies will need to comply – i.e. take care of human and environmental rights in their businesses.
Reference: https://www.esgtoday.com/eu-adopts-environmental-human-rights-sustainability-due-diligence-law/
3. BERLIN AND DUBLIN ACT TO SAVE NATURE RESTORATION LAW
The German and Irish governments have secured the support of nine EU member states – including France and Spain – in a bid to rescue the Nature Restoration Law (NRL).
The NRL could reverse decades of drastic biodiversity loss across Europe. A vote is expected on 17 June, but we are currently short of a qualified majority.
A previous vote was abandoned when Hungary changed its position and joined Austria, Belgium, Finland, Italy, Netherlands, Poland and Sweden, as non-supporters.
A change of heart by just one of the countries that have publicly refused to back the law could be enough to secure the necessary qualified majority (65%).
Ireland and Germany are pushing hard.
Reference: https://www.edie.net/expert-taskforce-convened-to-oversee-uks-adoption-of-issb-standards
4. UBER OFFERS LONDON DRIVERS CASH TO SWITCH TO EVS
Uber drivers in London without electric vehicles (EV) will receive a £5,000 grant to help them switch to an EV — new or used — in a bid to boost electrification.
Uber partnered with bp Pulse to support drivers with free charging and is offering an additional £12,000 to £17,000 to be used when purchasing a range of EV vehicles.
All Uber EV drivers will be eligible for three months of free charging worth £750 and an exclusive charging rate after that.
Drivers can opt to spend their grant cash as a lump-sum on a purchase, or on a rental or rent-to-buy deal.
Last February, Uber announced a €5m emergency EV charging initiative to help drivers in France.
Reference: https://tinyurl.com/3dubjvzh
5. BENZENE LEVELS CUT IN HALF IN REFINERIES IN U.S. IN 2023
The number of U.S. oil refineries exceeding the U.S. EPA’s action level for benzene in 2023 was cut in half compared to 2020.
Benzene causes cancer. It is found in oil, gas and petroleum products. Exposure can result in headaches, dizziness and respiratory irritation, or even cause blood disorders and reproductive harm.
In 2023 just six refineries were above the action level, compared to 12 back in 2020. The level, which is 9mg/m3, is the level that requires mitigation of the pollution.
This is a good story for the EPA; regulations working to help to protect neighbourhoods near refineries from a dangerous pollutant.
(Texas still has some work to do – Pemex in Houston has increased to 17mg/m3 in 2023)
Reference: https://www.dailyclimate.org/benzene-air-pollution-refineries-2668286311.html
6. MAJOR CLIMATE RULING SECURED BY SMALL ISLAND NATIONS
Island nations in the Pacific, Caribbean, and West Indies have won a landmark international legal victory, pressuring large governments to reduce carbon emissions.
The International Tribunal for the Law of the Sea, or ITLOS, ruled that parties to the UN Convention on the Law of the Sea must reduce GHGs. The key ruling is that GHGs count as marine pollution. States must “take all necessary measures to prevent, reduce and control marine pollution” and support developing states with climate adaptation.
In 2022, island nations including Palau and Vanuatu first brought the case. The island countries are dealing with storms, heavy rainfall, coral bleaching, and other effects of climate change despite contributing relatively little to carbon emissions.
Reference: https://grist.org/accountability/small-island-nations-get-big-win-make-polluters-pay/
7. NEW EU CRITICAL RAW MATERIALS ACT COMES INTO FORCE
The Critical Raw Materials Act (CRMA), has come into effect to ensure EU access to a critical raw materials (CRMs), enabling the EU to meet 2030 climate and digital objectives.
CRMs are of high economic importance, but also highly vulnerable to supply disruptions. The EU’s demand for Critical Raw Materials (CRMs) such as lithium, copper and cobalt, as materials for batteries, and solar, wind technologies, is set for major increase.
The CRMA is built on four pillars: setting clear priorities for action, building European capacities, improving resilience, and investing in research, innovation, and skills.
This is not solely about China, but it does address the EU's dependency on imports for CRMs, of which China is a major supplier.
Reference: https://tinyurl.com/2usrvx5c
8. 30% VOTE ON HUMAN RIGHTS DISCLOSURES FROM MONDELEZ
Roughly 30% of Mondelez shareholders voted for a proposal on the company’s human rights policy in Russia and Ukraine to send a clear signal to management that investors want more clarity on business practices in the warring countries.
The proposal didn’t pass, so the company isn’t required to fulfil the request, but the support passed a key threshold that can often get executives to take requests seriously, and it adds more scrutiny to Mondelez’s presence in Russia.
A substantial portion of Mondelez’s shareholders feel that human rights risk is a material issue that deserves attention.
No result yet, but shareholder advocacy can be a powerful voice for change.
Reference: https://tinyurl.com/5az65tkn
9. EU ISSUES RULES FOR FUND NAMES TO STOP GREENWASHING
The European Securities and Markets Authority (ESMA) released guidelines for the use of ESG and sustainability-related terms in investment fund names.
Investor demand for ESG-focused funds has increased sharply, so asset managers have included sustainability-related terms in fund names to attract investors, leading to an increased risk of greenwashing.
The proportion of funds using ESG terms is up 4x in 10 years, as fund managers launched ESG-related products, and changed names of funds to incorporate sustainability terms.
ESMA introduced thresholds: an 80% threshold for use of ESG-related words, and a 50% threshold for the use of “sustainable” or any sustainability-related term.
Reference: https://tinyurl.com/5t3vv8dw
10. GRI COLLABORATES WITH IFRS ON COMMON DISCLOSURES
In a move that brings the US standard closer to ESRS, IFRS and GRI announced further collaboration on interoperability.
This may well be further recognition from the IFRS’s ISSB that its narrow focus on the welfare of shareholders, at the expense of people and planet, is insufficient.
ISSB Chair Emmanuel Faber said:
“The ISSB’s focus continues to be on meeting the information needs of capital markets. Through this collaboration companies that wish to apply both the ISSB and GRI Standards to facilitate reporting to a broader range of stakeholders will be able to do so in a seamless way.”
Getting there slowly.
Reference: https://www.esgtoday.com/ifrs-gri-collaborate-on-interoperability-for-sustainability-disclosure-standards/
11. COSTA RICA BENEFITS FROM ELIMINATION OF HARMFUL SUBSIDIES
Costa Rica is one of the most biodiverse places in the world and hosts over 12,000 plant species, 1,200 butterflies, 800 birds, and 650 mammals, reptiles, and amphibians.
Costa Rica’s biodiversity journey faced significant challenges, including rampant deforestation – primarily driven by the huge expansion of pastureland for cattle ranching.
The elimination of perverse subsidies that had encouraged cattle ranching has played the biggest role in Costa Rica’s conservation efforts, resulting in an 80% reduction in deforestation rates.
In this year of global elections, it is more important than ever to hold governments to account for how they apply subsidies. Use your vote to decide the future of the planet.
Reference: https://www.greenpeace.org/international/story/67054/biodiversity-costa-ricas-remarkable-journey
12. US FIRM TO PAY $310M FOR OHIO DERAILMENT AND TOXIC FIRE
The firm at the heart of the train derailment and chemical spill in East Palestine, Ohio, will pay $310m to cover the cost of cleaning up contaminated air, water and soil.
The February 2023 derailment led to a fire that burned through hazardous cargo. Toxic fumes killed thousands of animals and forced many residents to flee. In April, Norfolk Southern reached a separate $600m class-action settlement.
The lawsuit sought penalties and injunctive relief "for the unlawful discharge of pollutants, oil and hazardous substances" under the US Clean Water Act.
The settlement doesn’t make up for the poison or heartache, but it will at least go some way to easing the financial burden.
Reference: https://www.bbc.com/news/articles/cp33nm2j11jo
![future planet icon](https://blog.futureplanet.com/hs-fs/hubfs/Logos/homepage-icon-header.png?width=107&height=100&name=homepage-icon-header.png)