Sustainability Notice #48 (4 - 10 December)

COP28:

New COP28 draft text does not mention phase out of fossil fuels (Source: Reuters)

The U.N.'s climate body on Monday published its latest draft text of the deal it hopes to reach at the COP28 summit in Dubai, which includes a range of actions countries could take to reduce emissions. The list did not refer directly to a phase out of fossil fuels.

COP28 pledges so far not enough to limit warming to 1.5C -IEA (Source: Reuters)

A raft of new pledges announced at the COP28 climate summit - from tripling renewables to reining in methane emissions - won't be enough on their own to limit global warming to 1.5 degrees Celsius, the International Energy Agency (IEA) said on Sunday.

Draft COP28 text proposes Azerbaijan host next summit in 2024 (Source: Reuters)

A draft text published on Sunday proposed that next year's COP29 climate summit be hosted by Azerbaijan between Nov. 11 and Nov. 22. The text will need to be adopted by the summit before it becomes official, but is in line with expectations after Azerbaijan won backing from other Eastern European nations on Saturday. The text also proposed dates for COP30 in Brazil of Nov. 10 to Nov. 21, 2025.

Dubai announces plan to cut carbon emissions by 50% by 2030 (Source: Reuters)

Dubai plans to cut carbon emissions by 50% by 2030, its media office said in a statement on Friday. The statement said the plan will accelerate the momentum it has achieved in its transition towards clean energy over the last decade, "backed by a clear roadmap for reaching its net-zero goal by 2050".

OPEC head to OPEC+: reject COP28 language on fossil fuel phase-out (Source: Reuters)

OPEC Secretary General Haitham Al Ghais has urged OPEC+ members to reject proposals for any text under negotiation at the COP28 climate summit that targeted fossil fuels rather than emissions, a letter dated Wednesday and seen by Reuters on Friday showed.

EU lawmakers agree on new rules to decarbonize buildings (Source: ESG Today)

Lawmakers in the European Parliament and Council announced today that they have reached a provisional agreement to strengthen the EU’s Energy Performance of Buildings Directive (EPBD), aimed at reducing energy use and emissions in buildings, with revisions including a phase out of fossil fuel boilers, as well as a target for all new buildings to be zero emission by 2030.

Biden administration announces rules to cut methane emissions for oil and gas sector (Source: ESG Today)

The Biden administration announced a finalized rule by the U.S. Environmental Protection Agency (EPA), aimed at significantly cutting methane emissions by the oil and gas industry, preventing the equivalent of 1.5 billion metric tons of greenhouse gas emissions.

India at COP28 insists on 'equity' in climate talks (Source: Reuters)

India's environment minister, Bhupender Yadav, on Saturday demanded "equity and justice" in U.N. climate negotiations, holding that rich countries should be leading global climate action. The comments underlined India's long-held position that, as a developing country, it should not be a forced to cut its energy-related emissions - even as it is the world's third-biggest emitting country after China and the United States.

Scope 3 emissions are the elephant in the room as COP 28 kicks off in one of the most water-stressed regions in the world (Source: Fortune)

Climate action is urgent, particularly in the Gulf. The Middle East and North Africa are already the most water-stressed regions of the world, and temperatures could be as much as 4°C warmer by 2050. Unless we act now to curb heat-trapping emissions, the cities many of us call home might be uninhabitable by 2100.

ESG reporting, tools and services:

The Taskforce on Nature-related Financial Disclosures (TNFD) has published a discussion paper on conducting advanced scenario analysis. (Source: TNFD)

The document provides different approaches to more advanced scenario analysis that can be used across a variety of scenario types and cases and can support the evaluation of nature-related issues and TNFD reporting.

MAS releases finalized code of conduct for ESG ratings and data providers (Source: ESG Today)

The Monetary Authority of Singapore (MAS), the central bank and financial regulator of Singapore, announced today the publication of its finalized Code of Conduct for ESG Rating and Data Product Providers (COC), introducing a set of principles aimed at boosting transparency, comparability and reliability of ESG ratings and data.

SEC Chair warns lack of climate rule exposes thousands of U.S. companies to EU climate reporting requirements (Source: ESG Today)

The successful establishment of climate reporting rules in the U.S. could potentially help companies facing more onerous climate-related disclosure requirements in other jurisdictions, according to comments by Securities and Exchange Commission (SEC) Chair Gary Gensler at a Council on Foreign Relations event.

Deloitte launches sustainability upskilling programs for its professionals with mıt, nyu, asu (Source: ESG Today)

Global professional services firm Deloitte announced today collaborations with a series of academic institutions including MIT Sloan School of Management, NYU Stern Executive Education and Center for Sustainable Business, and Arizona State University (ASU) to expand its sustainability, climate and equity upskilling program for its more than 150,000 professionals in the U.S.

EU Regulators propose new social, climate targets disclosures for financial products (Source: ESG Today)

Europe’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs), announced the publication of their Final Report amending the draft Regulatory Technical Standards (RTS), completing their review of key disclosure rules for financial products under the Sustainable Finance Disclosure Regulation (SFDR), with proposals for new mandatory reporting on social factors such as exposure to tobacco production and inadequate wages, as well as new financial product disclosure of greenhouse gas (GHG) emission reduction targets.

Business:

Lufthansa joins airbus carbon removal program with 40,000 ton carbon credit purchase (Source: ESG Today)

Lufthansa Group announced an agreement with aerospace giant Airbus for the pre-purchase of 40,000 tons of carbon removal credits, to be delivered through the removal of CO2 from the atmosphere using Direct Air Capture (DAC) technology, as part of the Airbus Carbon Capture Offer (ACCO). The certificates, to be delivered over four years, will be available from 2026.  

Microsoft signs one of the largest-ever nature-based deals to remove 1.5 million tons of carbon (Source: ESG Today)

Microsoft and carbon removal startup Mombak announced a one of the largest-ever nature-based carbon removal offtake agreements globally, with Mombak providing the tech giant with up to 1.5 million carbon removal credits from its reforestation projects in the Brazilian Amazon.

Dutch Central Bank to align equity and corporate bond portfolios with Paris Agreement Goals (Source: ESG Today)

De Nederlandsche Bank (DNB), the central bank of the Netherlands, announced today a new commitment to align its reserves, including its investments in equities and corporate bonds with the Paris Agreement.