What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. DECATHLON EXPANDS BUY-BACK SCHEME FOR SPORTS GEAR
Decathlon - the global sports retailer - has expanded its buy-back scheme to allow customers to swap out and repair old sporting equipment, in a bid to promote responsible consumption and provide circular economy for all its products.
The initiative - initially launched for own-brand bicycles at the end of last year - will now include more sports categories such as fitness equipment, racket sports, water sports gear, and camping equipment.
The sports retailer estimates that 800,000 products will be bought-back, resold or revived through the service, with more than 1,000 bicycles reported to have been upcycled since the service rolled out.
All good news.
Reference: https://www.edie.net/decathlon-expands-buy-back-scheme-for-sports-gear-to-promote-circular-economy/
2. CSDDD: MILESTONE IN EU FOR RESPONSIBLE BUSINESS CONDUCT
This one has not been without drama. But it is a good day for Europe and a good day for the planet as the Corporate Sustainability Due Diligence Directive (CSDDD) has been passed.
The directive, that requires companies to care for environmental and human rights impacts in their supply chain, has had a very turbulent journey. The process included nine parliamentary committees, more than 3,000 amendments and five years of debate and negotiations between MEPs.
CSDDD was passed on the anniversary of the Rana Plaza disaster in Bangladesh where 1,134 workers died.
The vote is a milestone for responsible business conduct and a considerable step towards ending the exploitation of people and the planet.
Reference: https://www.hrw.org/news/2024/04/24/eu-parliament-approves-supply-chain-law
3. 170 COUNTRIES MEET IN CANADA TO FORGE NEW PLASTICS TREATY
Most of the world’s nations are gathered in Ottawa to craft a treaty to stop the rapidly escalating problem of plastic pollution.
Each day, the equivalent of 2,000 garbage trucks full of plastic are dumped into the world’s oceans, rivers and lakes. People are increasingly breathing, eating, and drinking tiny plastic particles.
In March 2022, 175 nations agreed to make the first legally-binding treaty on plastics pollution - including in the oceans - by the end of 2024. It’s a short timeline for negotiations, but it is an urgent problem.
Plastic production continues to ramp up globally and is projected to double or triple by 2050 if nothing changes. This is a once in a lifetime opportunity to fix something everyone knows need to be fixed.
Reference: https://tinyurl.com/293mdmhf
4. CLIMATE TO CREATE HEALTH HAZARDS FOR 70% OF WORKERS
The health consequences of climate change can include cancer, cardiovascular disease, respiratory illnesses, kidney dysfunction, and mental health conditions.
According to new report by the International Labour Organization (ILO) a “staggering” number of workers - 70%+ of the global workforce - are likely to be exposed to climate-change-related health hazards.
It is clear that climate change is creating significant additional health hazards for workers. The pervasiveness of the problem is what is striking to me: Seven in 10 workers!
As part of their climate change responses, companies’ mitigation and adaptation strategies must involve more extensive occupational health and safety practices that reflect the increased risk.
Reference: https://www.ilo.org/resource/news/climate-change-creates-cocktail-serious-health-hazards-70-cent-worlds
5. ISSB VEERS TOWARDS ESRS WITH EXPANDED DISCLOSURE MEASURES
When will the world decide that one sustainability framework is enough?
For now, driven largely by economic and political exigencies, US ESG disclosures (ISSB) are lighter than Europe’s (CSRD).
But that is changing. Once egos step out of the room, common sense and commonality will prevail; (a) because large companies have to cover standards in all markets, and (b) double materiality is needed globally.
The latest addition to ISSB are plans to launch new projects researching corporate disclosure on risks and opportunities in biodiversity, ecosystems and ecosystem services, and human capital.
Last time I checked, CSRD and CSDDD had these covered.
Reference: https://tinyurl.com/2ysmvzkk
6. PRODUCTS MADE WITH FORCED LABOUR TO BE BANNED FROM EU
The EU Parliament approved a new regulation enabling the EU to prohibit sale, import, and export of goods made using forced labour.
States and the European Commission will be able to investigate suspicious goods, supply chains, and manufacturers. If a product is made using forced labour, it will not be allowed on the EU market (including online).
Decisions to investigate will be based on factual and verifiable information from, for example, international organisations, other authorities and whistle-blowers.
Manufacturers of banned goods will have to withdraw their products from the EU and donate, recycle or destroy them. The goods may be allowed back on the EU once forced labour is removed from the supply chains.
Reference: https://tinyurl.com/yc4ukmra
7. ASIAN REGION REELS FROM CLIMATE CHANGE HEAT AND FLOODS
Climate change is having serious impacts in Asia with extreme heatwaves in India, Thailand and Bangladesh and deadly floods in China and Pakistan this week.
More than 100,000 people have been evacuated from Guangdong province in China in recent days as heavy rainfall led to flooding, while scores of people have been killed by floods in Pakistan, once again.
Many Indian cities are facing temps of 40C, while this level of heat has already been exceeded in Bangladesh, Thailand, Laos, Philippines, Myanmar, and Indonesia.
The WMO says this is just after Asia had its hottest year on record in 2023.
This is not a drill. The time to act and reduce consumption is now, not later, now.
Reference: https://tinyurl.com/2j27rv8m
8. EXTREME WEATHER IN EUROPE COST €13.4B AND 151 LIVES IN 2023
The new European State of the Climate 2023 report gives a comprehensive overview of how climate change is impacting Europe. In short: Europe, we have a problem.
Europe has been warming 2x the global average -2.6°C above pre-industrial level for 2023 - as the fastest-warming continent on Earth. In 2023, there were at least 151 lives lost due to floods, wildfires and storms.
In economic terms, losses from extreme weather events are estimated at €13.4 billion.
A 5,000-square kilometre area was burned in wildfires. This is the size of London, Paris, and Berlin!
41% of southern Europe was affected by heat stress during July 2023, but heat-related loss of life has not yet been calculated.
The report is not a fun read, but essential.
Reference: https://lnkd.in/d45Cp9rE
9. EPA SEVERELY LIMITS EMISSIONS FROM COAL POWER PLANTS
A new regulation from the Environmental Protection Agency (EPA) requires coal plants in the United States to reduce 90% of their GHG emissions by 2039 - one year earlier than the agency had initially proposed.
When burned, coal emits more CO2 than any other fuel source. The compressed timeline was welcomed by climate activists but condemned by coal executives who said the new standards would be impossible to meet.
The EPA also imposed stricter limits on emissions of mercury - a neurotoxin linked to developmental damage in children - and put tighter restrictions on seepage of toxic ash into water supplies, and limits discharge of wastewater from coal plants.
The regulations may be a death blow to coal in the United States.
Reference: https://www.nytimes.com/2024/04/25/climate/biden-power-plants-pollution.html
10. IN A POSITIVE MOVE THE EU IS TO LEAVE THE ENERGY CHARTER
The Energy Charter Treaty is (hopefully) no more, and that is a good thing.
Energy companies used the 30-year-old treaty again and again to challenge climate change legislation. Fossil fuel companies have sued several EU governments under the ECT arguing that new climate legislation undermines their own investments.
In 2021, Germany's RWE used the ECT to sue the Netherlands for €1.4bn after the government ordered to close all coal-fired power plants by 2030.
What we need is consistent protection of the climate under the EU Green Deal. Exiting the ECT is an important step in this direction. The Council now needs to adopt this decision with qualified majority.
Reference: https://www.ft.com/content/c65d007c-c327-4ce2-98ad-83d7802cc64d
