What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. 42% GHG CUT NEEDED BY 2030 AS EMISSIONS ARE AT ALL TIME HIGH
Damning headlines from the UN Environment Programme’s (UNEP) new annual emissions gap report shows emissions exceeded 57 GT in 2023 for the first time in history, with a 1.3% increase recorded on 2022 levels.
The largest sources of emissions are power (26% of the global total), agriculture and land-use (18%), transport (15%) and heavy industry. The fastest-growing sector in terms of emissions figures year-on-year was international aviation, where a 19.5% increase has been recorded between 2022 and 2023.
Nations are largely off track to delivering their 2030 climate targets made under the Paris Agreement. We need to deliver a 42% reduction by 2030 if the Paris Agreement’s 1.5C goal is to remain feasible.
We can still make things “less bad” if we act.
2. DONALD TRUMP GOES AFTER EVs WHILE ON CAMPAIGN TRAIL
While campaigning in Michigan, Donald Trump said an “EV mandate” would cost hundreds of thousands of US auto jobs and the industry would be gone because China would take all the business. While EVs aren’t a major issue for American voters in general, they’ve been a hot issue in Michigan.
The investments in EVs under the Inflation Reduction Act had helped spur dozens of new EV and battery manufacturing plants in Michigan and were already creating jobs.
Most of the EV-related ads this election cycle have been negative. About 70% mentioned an “EV mandate” or “gas-car ban.” There is no mandate or ban, however, and the claims of job losses due has already been debunked.
This is just a sign of things to come in a new Trump presidency.
3. EU’S NEW FINANCE HEAD TO 'STREAMLINE' RULES ON SUSTAINABILITY
This is potentially a dangerous time.
“If I am confirmed as Commissioner, I will… work towards streamlining requirements to alleviate unnecessary burdens, without compromising on our common European Green Deal objectives,” said Maria Luís Albuquerque, the likely new EU finance head.
She was not explicit, but referenced the ESRS, EU Taxonomy and EU’s Green Bond Standard. A senior official also stressed the reporting rules should not be “over-implemented”.
The comments are part of efforts by the Commission to steady the ship, as pro-business politicians across Europe move to dismantle CSRD and the EU Taxonomy.
This is not the time to back down. Really.
4. UK PHARMA GIANTS FIGHTING LEVY ON BIODIVERSITY DATA
The genetic codes of nature – which, when stored digitally, are known as digital sequence information (DSI) – are play a big role in new drug development.
Biodiverse countries are angry about how DSI is being used to develop commercial products. Most of the world’s biodiversity is in poorer countries, who say free use of this genetic info is “biopiracy”, and say profits should be shared when indigenous species are used to develop commercial products.
UK companies including Astra Zeneca are allegedly objecting, threatening to cut jobs if the government pushes through a levy.
Global leaders have already agreed in principle that these benefits should be shared, with maybe a 1% tax on profits of goods derived from DSI. Seems fair to me.
5. BIODIVERSITY AND NATURE TAKING POLL POSITION AT COP16
COP16 - the United Nations Biodiversity Conference of the Parties (COP) has kicked off in Cali, Colombia.
Limiting and reversing biodiversity loss is the critical issue, and a consistent metrics framework is needed. The Taskforce on Nature-related Financial Disclosures (TNFD) and CDP said they have seen a major uplift in companies making biodiversity disclosures.
The World Business Council for Sustainable Development says it has plans to meet the need for a nature-related framework for companies to track progress toward a nature-positive goal. These will be released in 2025 at COP30 (the climate COP) in Brazil.
Without nature and biodiversity the planet cannot survive, so this is critical, and urgent.
6. CLIMATE VOTERS MAY HAVE BIG IMPACT ON US ELECTION
The US election is just around the corner and, so far, the climate issue has faded against the hyperbolic campaign rhetoric. However, early voting data shows that climate voters (in early voting) are turning more than other voters.
The non-partisan non-profit Environmental Voter Project estimates there could be 230,000 first-time climate voters in Arizona and 250,000 in Pennsylvania, both crucial swing states, where just a few thousand votes have determined previous elections.
With such a tight race and climate voters coming out in force, one could argue it may now be time for Kamala Harris to start playing her climate card, to remind voters nationwide of what’s at stake if the next president ignores or reverses climate mitigation action plans.
Milton and Helene come to mind.
7. MINING GIANTS SIGN $30B SETTLEMENT FOR ENVIRONMENT DISASTER
The mining giants BHP and Vale have signed a deal with the Brazilian government to pay nearly $30bn (£23bn) in compensation for the Mariana dam collapse in 2015 that caused the country's worst environmental disaster.
The dam collapse released toxic waste and mud, which flooded nearby towns, rivers and forests. It killed 19 people, left hundreds others homeless, and poisoned the river.
Additionally more than 620,000 people had taken BHP to court in the UK - seeking $47bn in damages. BHP’s HQ was in the UK at the time. 70,000 complainants are also taking Vale to court in The Netherlands.
Both companies deny liability.
That is frustrating, but not really a surprise.
8. IS BOEING CRIMINALLY NEGLIGENT IN CRASH OF ETHIOPIAN AIRLINES
Boeing faces allegations of criminal negligence for its reported failure to provide critical information to Ethiopian Airlines prior to the 2019 crash that killed 157 people.
After a malfunction on board a Boeing aircraft in 2018 resulted in 189 deaths, Ethiopian Airlines urgently sought guidance on handling similar malfunctions. Boeing reportedly provided the airline with a general bulletin, but not the requested safety details.
Aviation experts agree that the lack of info likely contributed to the pilots’ inability to regain control of the aircraft. In contrast, Boeing allegedly provided comprehensive safety and technical briefings to US pilots, including those from American Airlines.
This is pretty shocking – and major corporate governance failure.
9. COMMONWEALTH AGREES SINKING NATIONS TO KEEP MARITIME BOUNDARIES
That’s possibly one of the strangest headlines I ever had to write, a lingering legacy of colonialism and climate change.
In a boost for Pacific Islands under threat from rising seas, Commonwealth nations agreed that a nation's maritime boundaries should remain fixed even if climate change causes small island states to submerge.
The 56 countries with roots in Britain's empire issued the Commonwealth's first Ocean Declaration at the Samoa summit.
“Members can maintain their maritime zones" and the rights that flow from them continue to apply, regardless of physical changes connected to climate change related sea level rise.
There is a lot to process in this story.
10. NEVADA LITHIUM MINE WINS APPROVAL FROM BIDEN ADMINISTRATION
For the first time under President Joe Biden, a federal permit for a new lithium-boron mine has been approved for a Nevada project essential to his clean energy agenda, despite conservationists’ saying it will drive an endangered wildflower to extinction.
Ioneer Ltd.'s mine will expedite production of a key mineral in the manufacture of batteries for EVs, part of Biden’s push to cut GHGs.
The project has faced nearly six years of intense debate about the endangered Tiehm’s buckwheat flower, which grows exclusively in this area. Environmentalist argue that mining operations will further endanger the species.
EVs versus the environment. There are no easy answers here; with China’s EV capability lurking in the background too.
