What's going on in the world of ESG, CSRD, CSDDD, SDGs etc...
1. OLYMPICS OUTFITTER LULULEMON ACCUSED OF GREENWASHING
On the cusp of the Olympics, popular athleisure brand and official Team Canada outfitter Lululemon has been accused of greenwashing in France.
Canadian environmental campaign group Stand.earth filed a legal complaint yesterday based on the retailer’s ‘Be Planet’ campaign, which it says contradicts the company’s climate record.
This follows a similar legal complaint in Canada, and recent protests at Lululemon shops including at the company’s flagship Vancouver store.
“We are asking French officials to investigate how Lululemon can claim to ‘Be Planet’ while creating more planet-harming emissions every year than half a million cars,” says Stand executive director Todd Paglia.
Reference: https://tinyurl.com/3m83y9nj
2. CLIMATE WORLD LOVES PROSPECT OF KAMALA IN THE WHITE HOUSE
It is not just because the alternative is so bad – Trump and Vance are promising to reverse environmental protections if they come to power – but vice-president Harris has a track-record that strongly supports the environment.
As California Attorney General, Harris sued major oil companies for environmental violations, secured a $44m settlement from Volkswagen for emissions cheating, and investigated ExxonMobil's climate change disclosures.
She co-sponsored the Green New Deal resolution and has consistently prioritised the intersection of socioeconomic and environmental issues.
Feels a lot better than “Drill baby, drill” from Donald Trump, or Vance’s record of prioritising fossil fuel interests’ over the climate crisis.... in our honest opinion!
Reference: https://heatmap.news/politics/kamala-harris-climate-record?
3. PROJECT 2025 PLANS TO DISRUPT ALL CLIMATE PROGRESS
The 2025 Presidential Transition Project is a 900-page right-wing manifesto to reshape the U.S. federal government should Donald Trump win the presidential election.
Here’s what Project 2025 plans for the EPA:
- Cut any program focused on climate.
- Limit the agency's ability to regulate under both the Clean Air Act and Clean Water Act.
- Cut all references to "environmental justice".
- Repeal or curtail the Inflation Reduction Act.
- Curtail consideration of social cost of carbon.
- Give all authority to political appointees over scientists.
- Move away from supporting energy transition.
- Move away from regulating pesticides.
And that’s just the EPA. Heaven help us.
Reference: https://drilled.media/news/newsletter-Project2025
4. EXPANDED ECODESIGN RULES IN EU DRIVES MORE TRANSPARENCY
The EU has introduced a comprehensive law to enhance the sustainability of products. The new Ecodesign for Sustainable Regulation expands on the existing Directive, covering nearly all physical goods and aiming to improve circularity, energy performance, and environmental sustainability.
The rules apply to almost all physical goods in the EU, not just energy-related products.
Products must be energy-efficient, durable, repairable, and recyclable, among other eco-friendly traits.
Companies must disclose annual product waste and reasons, and public procurement must meet green criteria.
This is well overdue and ensures products are designed with their entire lifecycle in mind.
Reference: https://tinyurl.com/2wf7ap8k
5. FIRE HAS RAVAGED HALF OF JASPER, HISTORIC CANADIAN TOWN
Huge, fast-moving wildfires have destroyed up to half of the historic Canadian town of Jasper, as firefighters try to save as many buildings as possible.
20,000 tourists and 5,000 residents have fled the mountainous area in Alberta province - a hugely popular tourist spot. 36,000 hectares of land has so far been affected and more warm weather was forecast.
Meanwhile, hundreds of fires blaze in British Columbia, and in the western US states.
California’s biggest wildfire so far this year has killed at least two people and forced thousands to evacuate their homes.
As the planet heats up, this seems to be the new normal for summer in Canada and across North America.
Reference: https://www.bbc.com/news/articles/cyj423n2jdgo
6. UN ATTACKS COMPANIES’ RELIANCE ON CARBON CREDITS
According to the Financial Times, the UN has said that it is opposed to companies using credits (outside of state regulated schemes) to cancel out their carbon dioxide footprint.
The report says that companies should not rely on "offsets" to deliver emissions reductions - but rather work across their value chain to do more reductions internally. “Reducing your own emissions first. Do not rely on offsets to do the job for you.”
Companies and governments should be focusing on genuinely curbing their own emissions, utilising offsets only in exceptionally rare cases where no viable, immediate alternative exists.
And offsets should never count as the polluters’ own emissions reductions.
Reference: https://www.ft.com/content/0a46a3b0-1672-4763-b5a6-868ae1fd63c5
7. THE MERCURY IS RISING, HEAT RECORDS FALLING, PEOPLE ARE DYING
Last July, we saw a string of seven consecutive days, which was the hottest day ever recorded. Those records were smashed.
July 22, 2024 beat the record held from the previous day (July 21), which took the dubious crown from July 6, 2023.
“We are now in truly uncharted territory, and as the climate keeps warming, we are bound to see new records being broken in future months and years.”
This new normal is accelerating physical climate risks to unprecedented levels. And the world’s oceans are getting dangerously close to their limits of absorbing heat.
Thousands of people have already died from heat this year. We are only at the end of July.
8. SOUTH AFRICA SETS FIRST SWEEPING CLIMATE CHANGE LAW
The South African President has signed into law a broad climate change act that will set caps for large emitters and require every town and city to publish an adaptation plan, to enable the country to meet its emissions commitments under the Paris agreement.
South Africa, which is the world's most carbon-intensive major economy and among the top 15 GHG emitters, is on track to miss those targets because of to its heavy reliance on coal for electricity.
Emissions targets will be set for each high-emitting sector such as agriculture, transport and emitters that exceed their budget are likely to have to pay a higher rate of carbon tax.
Great to see South Africa start on this path.
Reference: https://www.reuters.com/world/africa/south-africa-passes-its-first-sweeping-climate-change-law-2024-07-23/
9. AMERICAN AIRLINES STAFF DON’T WANT ESG FUNDS FOR 401(K)
In another example of the backlash against the ESG label, a class-action lawsuit against American Airlines filed by employees opposed to ESG funds used in their 401(k)s could redefine how employers handle ESG investing and respond to further litigation.
The suit, filed in Texas, is one of the first in the private sector to focus on the use of ESG funds in employees’ retirement accounts. The lawsuit’s lead plaintiff, alleges that American mismanaged employees’ retirement savings by investing with fund managers who “pursue leftist political agendas” through ESG strategies, proxy voting and shareholder activism.
The language feels more emotional and political than financial. It’s hard to keep up.
Reference: https://www.perplexity.ai/search/what-re-kamala-harris-s-enviro-Z00htyraRMy2XD8OeZymvg
10. ESMA ADVOCATES FOR EU TAXONOMY AS SOLE SUSTAINABILITY GUIDE
The European Securities and Markets Authority (ESMA) says it needs to enhance the Sustainable Finance Regulatory Framework (SFRF) for greater investor protection. Its key suggestions are:
- Complete the EU Taxonomy for all activities contributing to environmental sustainability, develop a social taxonomy, and use the expanded EU Taxonomy as the sole reference.
- Introduce a clear definition of transition investments to provide legal clarity.
- Enhanced Disclosure Requirements - include basic sustainability info, including environmental and social characteristics.
- Categorise products based on sustainability and transition criteria.
- Regulate ESG Data Products for consistency of ESG metrics, and reliability of estimates.
Reference: https://www.prweek.com/article/1881316/havas-b-corp-certification-revoked-following-shell-win
