Sustainability Progress Report #29

👋 Welcome to the Sustainability Progress Report! This is a weekly newsletter that explores news in corporate sustainability, corporate best practices, changes in regulation and compliance, EU climate and green energy policies, breakthroughs in technological innovation, worldwide impacts of climate change, government and community response to it, labour rights, and due diligence. It’s usually published on Fridays (unless vacation 😉). If you’re new here and you’d like to stay up-to-date, click the “Subscribe” button above. 

How is the EU managing its climate stripes this week?

#policies

After much pushback, the Council delayed the EU deforestation regulation application date by 12 months to help companies prepare for implementation, aiming to reduce the EU's contribution to deforestation and forest degradation. The regulation will be binding from 30 December 2025 for large operators and traders and from 30 June 2026 for SMEs. (to the source)

The Council adopted a directive to set updated air quality standards in the EU, aiming for zero pollution by 2050 and preventing premature deaths. The new standards align with WHO guidelines, include early action provisions, and ensure fair compensation for health damage. (to the source)

The EU Council approved new rules to enhance working conditions for over 28 million digital labour platform workers, ensuring transparency in human resources management and legal employment presumption. (to the source)

The EU Council urged the European Commission to propose a comprehensive action plan to combat desertification, land degradation, and drought, aiming for Land Degradation Neutrality by 2030. The Council called for a review of existing funding instruments and collaboration among various organisations to develop effective national strategies. (to the source)

Canada expanded climate-related financial disclosure requirements to include private and large federally incorporated companies, introduced a new sustainable investment taxonomy, and plans to amend the Canada Business Corporations Act, excluding small- and medium-sized businesses. (to the source)

The US Supreme Court has upheld a federal rule aimed at combating the climate crisis by requiring coal and gas-fired power plants to reduce emissions by 90% by 2032, despite the fact that fossil fuel-fired plants account for 25% of domestic emissions. The US Supreme Court granted the EPA temporary permission to implement its regulations to reduce global warming emissions from power plants, rejecting an emergency appeal from Republican groups. (to the source and source)

Four EU technical secretariat members are urging a review of the proposed method for measuring durability in apparel and footwear, accusing it of discriminating against natural fibres. (to the source)

Environmental campaigners urge the European Commission to take action on chemicals, including PFAS restrictions and revising REACH regulation, following EU ministers' review of Chemicals Strategy for Sustainability. (to the source)

#trends

ETI partners with Open Supply Hub to mandate tier one supplier details on the platform, becoming the first multi stakeholder initiative to do so. (to the source)

GRESB, the global sustainability benchmark, released its 2024 Real Estate and Infrastructure Benchmark results, revealing a record 2,223 real estate and 887 infrastructure participants. The benchmark shows a commitment to sustainable market transformation, with 90% of participants reporting 100% data coverage for Scope 1 and 2 emissions and 65% having a net zero target. (to the source)

UAE and Saudi Arabia lead in the Middle East's sustainable bond issuance that reached $16.7 billion in September 2024. Despite a 18% slowdown compared to 2023, the market is expected to recover and grow, with a growing focus on social elements like affordable housing and essential services. (to the source)

BlackRock's survey shows that 99% of insurers globally set climate transition-related objectives in their portfolios, with 56% setting a net zero target date. Key goals include emissions reduction, minimum allocations, and temperature alignment. Investor confidence in climate-related investments is growing, with 66% reporting greater conviction than a year ago. (to the source)

Fidelity International launched Blue Transition Bond Fund, aiming to support ocean and freshwater health transition and long-term capital growth. The fund will invest in sustainability bonds, finance projects, and manage water-related risks. (to the source)

A "jet-setter" tax on frequent flyers in Europe could slow global heating and raise €64bn annually, according to a report from the New Economics Foundation. The tax would reduce carbon pollution, increase investment for trains and buses, and decrease passenger numbers. (to the source)

A new analysis shows that 80% of countries have not submitted plans to meet a UN agreement to protect Earth's ecosystems, with only 25 countries submitting their plans before biodiversity COP16 in Colombia. Only five megadiverse countries produced National Biodiversity Strategy Plans by the deadline. (to the source)

The UK and Chile want to elevate fungi to a separate realm for environmental protection, alongside animals and plants as they are crucial for soil remediation, carbon sequestration, and environmental wellbeing. The plan, submitted to the UN Convention on Biological Diversity, will co-sponsor a "pledge for fungal conservation" arguing for their recognition in legislation, policies, and agreements. (to the source)

As the Brazilian market for carbon offsets has been shaken by controversies, the Brazilian state Para will consult Indigenous communities on future sale of carbon offset credits the U.S. companies will buy in the Amazon rainforest. (to the source)

The Ontario appeals court is set to rule on whether Ontario's climate target violates young people's rights. Seven people aged 16 to 28 are suing the province, arguing that the target is inadequate and violates their rights to life, liberty, security, and equality. The case could potentially impact Canada and globally, potentially influencing future climate lawsuits. (to the source)

#labour_rights

Bangladesh's clothing export sector is facing a crisis due to political instability, government collapse, and brands entering neighbouring markets. 90% of buyers have moved to India, with 25-30% of orders expected to move to various countries across the continent by December. The main source of export income in Bangladesh is the clothing sector. (to the source)

A new Better Cotton’s project in India aims to improve recruitment strategies and retain women in leadership roles, particularly in community-facing roles. The results will help Better Cotton achieve its 2030 Impact Target2 on women's empowerment, as women are crucial to cotton farming communities in India. (to the source)

The Organic Cotton Accelerator (OCA) initiative has launched a 'Decent Work Strategy' to enhance working conditions and protection for organic cotton farmers, workers, and communities in the next seven years. (to the source)

#green_claims

The Indian CCPA issued guidelines to prevent misleading advertisements and greenwashing, requiring businesses to use clear terms and third-party certifications, promoting genuine claims and sustainable practices. (to the source) 

#energy_transition

Amazon is investing in nuclear energy to meet customer demands and achieve its Climate Pledge commitment to be net-zero carbon by 2040. This move aligns with industry trends, as Google also invested in sustainable power sources like Small Modular Reactors. (to the source)

Tesco is buying solar power from the Cleve Hill solar park in Kent, which will provide up to 10% of its UK electricity demand over 15 years. The park will power 144 of Tesco's large supermarkets for a year. This move will cover 45% of Tesco UK's electricity demand in 2030. (to the source)

The IEA predicts that fossil fuels could become cheaper and more abundant as governments transition to clean energy by the end of the decade. Geopolitical upheavals could cause some "breathing space" from recent spikes in global oil and gas prices, leading to a plateau at $75-$80 a barrel by the end of the decade. (to the source)

The IEA predicts that global electricity demand will rise 6% in 2035 due to increased power needs for new factories, electric vehicles, air conditioners, and data centres. Despite this, countries are expected to build enough low-emissions power plants by the end of the decade, primarily solar, wind, and nuclear power. However, many countries have pledged to reduce emissions to zero by midcentury, which is now slipping out of reach. (to the source)

The IEA predicts clean energy sources like wind and solar will outpace global energy demand by 2030, becoming the largest type by the mid-2030s. However, global demand will slump until 2035 due to electrification and renewable energy. Clean energy could meet 40% of global energy demand by 2035 and 75% by 2050. (to the source)

Australian gas exports, viewed as "clean" and necessary for net zero emissions, have grown rapidly in the liquified natural gas (LNG) industry. The US study estimates that total climate pollution from LNG was 33% greater than coal over a 20-year period, affecting emissions policy. However, specific evidence showing Australian LNG substantially displaces coal in Asian countries or has substantially lower emissions than coal across its lifecycle has not been received. (to the source)

European carmakers are planning to launch dozens of affordable electric models next year, preparing for an "EV winter" due to strict EU carbon emission targets and fierce competition from China. Renault, the only major European carmaker not to issue a profit warning, is focused on recovering lost market share with new vehicles. (to the source)

Despite global commitments, coal remains a significant fossil fuel, with seven years left to reduce its use from 36% of electricity generation in 2022 to less than 4% by 2030, primarily driven by China and India. (to the source)

China's National Energy Administration reported a 13-fold increase in Green Electricity Certificates (GECs) issued in the first half of 2024, indicating progress in decarbonisation and reform. However, this also presents administrative challenges, need of rigorous verification, and re-presentation of clean energy. (to the source)

Experts say high cost and lack of standards hinder green hydrogen uptake in Asia, as the amount of renewable energy required for decarbonization is a significant barrier. (to the source)

Brussels continues to impose stricter rules on combustion engines in the EU from 2035, despite industry pressure to make them less stringent. Critics argue the ban could impact electric vehicle sales and competition from Chinese manufacturers. Italy and France are pushing for more flexibility, while Germany supports alternative fuels. (to the source)

#decarbonisation

The University of Bath's research suggests that multiple carbon accounting systems can hinder companies' net zero goals due to their cost and confusion. The study recommends a single, standardised system with seven principles: accuracy, equitable credits, global trade emissions, time-based tracking, consistent data, accessibility, and adaptability. (to the source)

China's carbon market saw a 35% increase in prices this year, with emissions permits rising 2.5% to 103.49 yuan/ton. Government actions, including mandatory ETS and CER schemes, drive market activity. (to the source)

With COP29 approaching fast, countries seem to be planning to bring more integrity to the Voluntary #Carbon Market (VCM) by regulating it on national and international level. The talks about VCM come amid controversy over data #manipulation: Verra suspended 27 affiliated projects and cancelled credits while the CFTC released guidelines to reduce price manipulation in the US. (to the source)

Greece revised its national energy and climate plan, aiming for #renewables to account for 82% of electricity #generation by 2030. This aligns with the EU’s goal of reducing greenhouse gas emissions by 55%. The revised plan requires €95 billion in additional investment by 2030. (to the source)

Germany allocated $3.1 billion for #decarbonization efforts of 15 industrial companies, aiming to reduce 17 million tons of emissions in energy-intensive sectors. Critics argue the #subsidies are costly, but Berlin sees them as temporary lifelines. (to the source)

The UK government's £22bn plan for carbon capture and storage faces criticism. Scientists argue it's unproven to work on the scale needed for effective results. Studies show only 10.8% of emissions are captured over 20 years, and 20-31% over 100 years. The scientists suggest alternative solutions such as extending the electrical distribution network down coastlines for tidal-power generation might make more sense. (to the source)

China requests overseas shipowners to report carbon emissions, potentially expanding its emissions-trading system to cover shipping, following the EU's carbon levy adoption and slow progress in IMO rules. (to the source)

A report reveals transport and storage as a major bottleneck in Asia's carbon capture capacity scale-up, with key markets like Japan and Indonesia lacking clear regulations for the costly technology. (to the source)

The EPA reported a 4% drop in emissions from large polluters, including power plants, which account for half of the country's total emissions. Between 2022 and 2023, power plants reduced their emissions by 7.2%, emitting 1.5 billion metric tons of carbon dioxide. The decline is linked to a shift from coal to gas fuel sources. (to the source)

#waste

The Environment Agency is facing increasing concerns over potential contamination of sites with banned cancer-causing "forever chemicals" in England. Four sites are identified as "problem sites": a former RAF airfield, a fire service college, a chemicals plant, and a fire protection equipment supplier. The agency is investigating elevated concentrations of PFAS in surface water. (to the source)

The European Environment Agency (EEA) revealed that only one-third of Europe's surface waters meet the EU’s quality requirements originally set for 2015 and extended to 2027, despite 37% having good ecological and 29% good chemical status in 2021. The extended deadline is expected to be missed. (to the source)

Tar balls, a hydrocarbon-based pollutant, caused the closure of two Sydney beaches. The EPA is working with other agencies and forensic scientists to identify the source of the contamination and the risks it presents. Clean-up efforts are underway to safely remove and dispose of the material. (to the source)

A US study found microplastics in dolphin breath, indicating they are inhaling potentially harmful contaminants. The researchers collected samples from bottlenose dolphins in Sarasota Bay, Florida, and Barataria Bay, Louisiana, and found many polyester in their breath, raising concerns about the potential impact on dolphins. (to the source)

According to Source Material investigation, Dawn Meats, Europe's largest lamb supplier, plans to burn leftover meat and bones at Ballyhaunis plant in Ireland, potentially emitting more than legal sulphur dioxide limits, potentially causing respiratory illnesses. (to the source)

#outdoor

German outdoor retailer Globetrotter and Vaude partnered to offer nationwide in-store repairs in certified workshops. Customers can now have their apparel repaired at nine Globetrotter locations in Germany, regardless of purchase place or warranty. (to the source)

Kathmandu partnered with Fulgar to convert waste into polyamide yarn and launch the Epiq SE, a heritage puffer jacket made from recycled plastic waste, including end-of-life car tyres. The jacket features duck down certified to the Responsible Down Standard. Unique Digital IDs help customers learn about the jacket's sustainability story. (to the source)

Unspun raised $32 million in a Series B funding round to expand its 3D weaving technology, Vega, in Europe. Unspun’s collaboration with Decathlon Pulse aims to scale the technology through 2030, and to provide sustainable apparel to mainstream European customers. (to the source)

Swiss outdoor textile innovator Dimpora AG introduced Dimpora Bio, the world's first nanoporous membrane with 60% bio-based content. The membrane, made from a blend of bio-based and oil-based materials, uses castor beans feedstock in production. (to the source)

Thai Acrylic Fibre chose FibreTrace's traceability solution, a luminescent pigment, for its recycled acrylic fibre Regel, made from 50% recycled waste and 50% virgin polymer. (to the source)

Rab partners with UK-based Grangers to introduce Down Defend, a treatment for down-filled garments, to enhance hydrophobic properties, maximise warmth, comfort, protection, and longevity in Rab's autumn-winter 2025 collections. (to the source)

#apparel

Research shows that 'fair trade' and organic cotton grown in India outperforms conventional cotton in terms of greenhouse gas emissions, water usage, and chemical avoidance. (to the source)

Spain's largest fashion companies, including Zara, H&M, Decathlon, Ikea, and Primark, will begin collecting #discarded clothes in April 2025 as part of a #voluntary pilot scheme called Re-viste and ahead of EU regulations set to take effect in 2026. The pilot program anticipates that Spain will need one textile waste container for every 1,200 residents. (to the source)

A study showed that wool can be recycled up to six times through the carding process, depending on its initial length and fabric structure. Knitted fabrics have better fibre retention and minimal impact on mechanical recycling. This research could optimise production and add value to circular supply chains. (to the source)

Apparel industry experts anticipate a challenge in the apparel supply chain due to the new California law mandating manufacturers to return discarded products by 2030. (to the source)

H&M plans to exclusively use post-consumer recycled down and feathers by 2025, reducing dependency on virgin resources and increasing recycled animal fibres. The retailer also aims to source all virgin cashmere from GCS-certified farms. (to the source)

Hugo Boss and Grameena Vikas Kendram Society for Rural Development are collaborating to create regenerative agricultural value chains, transforming 5,250 acres into regenerative food and cotton landscapes, and training 1,500 farmers, including 900 women. (to the source)

A 2024 Baptist World Aid Australia Ethical Fashion Report reveals that 52% of Australian fashion companies don't pay living wages, use “sustainable” fibres in less than 25% of their products, and half don't commit to climate action. (to the source)

Levi Strauss issued a Climate Transition Plan that is addressing climate risks, including supply chain disruptions, production disruptions, water risk, regulatory scrutiny, and increased environmental expectations. (to the source)

A study by the Federal Institutes of Sul de Minas and Mato Grosso do Sul warns that Brazil could lose up to 64% of its cotton-growing land by the end of the century due to climate change. However, the study also suggests that expanding cotton production could help combat climate change by sequestering carbon. Hmmmm. (to the source)

Dutch company Ioniqa Technologies seeks bankruptcy protection, affecting global plastic recycling efforts. Despite focusing on food-grade materials, the news raises concerns for PET recyclers in fashion. (to the source)

#consumer_goods 

Unilever is investing in materials science to reduce its use of virgin plastic. Its goals include cutting virgin plastic use by 30% by 2026 and 40% by 2028, ensuring 100% reusable packaging by 2030, and using 25% recycled plastic by 2025. (to the source)

#circular_economy

eBay Ventures expanded Circular Fashion Fund, providing $1.2 million in global investment by 2025, 200 hours of mentoring, and $300,000 for "Circular Fashion Innovator of the Year." (to the source)

Oxford Economics' report on the second-hand clothing trade in the EU27+ countries and Africa, particularly in Ghana, Kenya, and Mozambique, highlights its benefits and challenges, stressing the need for regulations to support the circular sector. (to the source)

#innovation

Fortum managed to transform CO2 emissions from waste incineration into biodegradable plastic, a significant achievement in sustainable materials. The program aims to capture up to 90% of these emissions, impacting industries such as packaging, toys production, and home electronics. (to the source)

German biotech company AMSilk partnered with French fermentation specialist Ajinomoto Foods Europe to produce bio-based spider silk proteins, suitable for high-performance applications in fashion, automotives, and medical devices. (to the source)

Inditex, Zara's parent company, launched a €50m investment fund to support sustainable textile start-ups, aligning with its environmental goals and commitment to 25% “sustainable” garment production. (to the source)

Ireland's Minister of State launched the country's first sustainable fashion campaign, "Reverse the Trend," in celebration of World Circular Textiles Day. The campaign aims to raise awareness about over-consumption and promote circularity in the textile industry. (to the source)

#climate_change

The Global Commission on the Economics of Water warns that over half the world's food production will fail within 25 years due to a water crisis. The report predicts that demand for fresh water will outstrip supply by 40% by the end of the decade, that some countries benefit more from "green water" than "blue water", and calls for urgent action to conserve water resources. (to the source)

Finland's forests and peatlands experienced a 90% decrease in carbon absorption since 2010, causing implications for 118 other countries. Rising temperatures and climate challenges, including droughts, wildfires, and tree mortality, pose significant risks to temperate northern governments. (to the source)

New York state prosecutors may press criminal charges against big oil companies for fueling hurricanes and climate disasters in the US, citing Hurricane Ida, Sandy, and extreme heat waves, attributed to reckless endangerment. (to the source)

The EU is failing to adapt to the worsening climate situation, with two-fifths of local projects having little impact. The EU Court of Auditors warns that Europe must increase its adaptation efforts. However, 70% of municipalities in four countries are unaware of the EU strategy, 60% are unaware of their own plans, and over half are unaware of regional plans. (to the source)

A study reveals that global carbon dioxide emissions from forest fires have risen 60% since 2001, particularly in the northern boreal forests. The increase is attributed to more fire-friendly weather and faster-growing woodlands, aided by rapid temperature rises in high northern latitudes. (to the source)

A new analysis by the Global Commission on the Economics of Water suggests water scarcity could lead to GDP shrinking in high-income countries and a 15% drop in poorer ones. (to the source)

Researchers at Lancaster University found no statistical evidence for a surge in global warming over the past 15 years, despite the belief it is causing more extreme weather. They examined long-term global surface temperatures since 1850 and found no evidence since the 1970s. The study suggests a surge may be happening but is not detectable yet. (to the source)

What stood out to you this week? Any surprising news? Share your takeaways and let's discuss the latest in sustainability! 👇