Sustainability Progress Report #38

👋 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

The EU set binding re-use targets for 2030 and 2040, limiting single-use packaging and requiring operators to minimize usage. The regulations restrict single-use plastic packaging for certain items, such as pre-packed fruit and vegetables, food and beverages in hotels, bars and restaurants, individual condiments, and small cosmetics. Take-away businesses must offer customers the option to bring their own containers to fill with beverages or food. (to the source)

The new regulations aim for all food packaging to be recyclable by 2030. The regulation also requires member states to reduce plastic packaging waste by 5%, 10%, and 15% by 2040. (to the source)

The implementation of EU law is varying across member states, with the European Commission causing delays in enforcing it, despite improvements in detecting breaches, attributed to administrative challenges and resource constraints. (to the source)

California State Senators threatened to delay the enforcement of a new climate reporting regulation, which requires companies with revenues greater than $1 billion to report annually on their emissions across all Scopes. The law was approved in 2023, but the senators argue that the regulator has not yet posted job descriptions for staff. (to the source)

The European Parliament approved a one-year delay in the EU deforestation law, requiring compliance for large companies and small and micro businesses until June 2026. (to the source)

The European Commission has launched the Flight Emissions Label, a methodology for calculating flight emissions. The label, operational by July 2025, considers factors like aircraft type, passenger numbers, freight volume, and aviation fuel, and aims to help transition to net zero. (to the source)

The EU's CSDDD is facing backlash from the Socialists and Democrats due to concerns about a potential U-Turn on the rules. The directive requires companies to check their supply chains for dodgy environmental and labor practices. The law was scrapped earlier this year and nearly derailed due to concerns about competitiveness. Businesses are generally supportive of streamlining plans.

The CSDDD has been derailed due to concerns about its impact on competitiveness. The Socialists and Democrats argue that a U-turn would undermine Brussels' credibility and businesses' legal certainty.  (to the source)

The EU Commission's proposal on combating child sexual violence was watered down by some EU justice ministers, addressing key issues such as a statute of limitations and lack of recognition of grooming. (to the source)

#trends

The environmental impact of retardants and chemicals, including aromatic brominated flame retardants, is a growing concern in the EU, prompting a potential ban on these substances. (to the source)

A study in Nature reveals that global tourism is increasing GHG emissions, contributing to 9% of total GHG emissions. Between 2009 and 2019, CO2 emissions in the tourism sector increased by 3.5%, primarily due to domestic travel and private car usage. China, the US, and India are the largest emitters. (to the source)

The voluntary carbon market has seen significant progress, with international projects, government credit projects, and layoffs. However, there's no consensus on the impact of credit types and oversight bodies. (to the source)

The voluntary carbon market, fueled by international and government projects, is expected to grow significantly, with the potential for significant growth in the 2030s. (to the source)

The IPBES report reveals that sectors like agriculture, energy, and fishing are losing between $10tn and $25tn annually due to unaccounted-for costs from current business practices, equivalent to a quarter of global GDP. (to the source)

Rio Tinto, London's largest miner, defended its refusal to set emissions reduction targets despite campaigners' pressure, aiming for a 15% reduction by 2025, 50% by 2030, and net zero by 2050 only from operations. GHG from product use responsible for 95% of total emissions is excluded from the planning. (to the source)

#reporting

EFRAG delivered technical advice on the Voluntary Sustainability Reporting Standard (VSME) for non-listed SMEs, aiming to streamline sustainability reporting and support SMEs in accessing green financing. (to the source and the resource)

Belgian companies are making significant progress in sustainability reporting, with 88% now reporting and 71% integrating it into annual reports, adopting standards, increasing formal assurance, and addressing ESG risks. (to the source)

The upcoming requirements for sustainability- and climate-related reporting standards will be supported by the Hong Kong Institute of Certified Public Accountants and ISSB, ensuring effective and efficient implementation, set to be put into effect for different-sized entities by 2025, 2026, and 2028. (to the source)

The ESMA is trying to digitize reporting on new standards to streamline sustainability and financial disclosures to provide investors with easily accessible, comparable, and actionable information. (to the source)

The UK endorsed the ISSB's climate and sustainability-related reporting standards for use by companies in the UK. (to the source)

The Canadian Sustainability Standards Board (CSSB) released its first Canadian Sustainability Disclosure Standards (CSDSs) to enhance sustainability and ESG reporting. These standards provide clearer, more consistent, and easier-to-compare reporting, aligning with global guidelines and Canada's specific needs. Transition reliefs are available. (to the source)

#litigation_and_negotiation

The Advertising Standards Authority (ASA) ruled that Lloyds Bank's ad highlighting its contributions to the low-carbon transition was misleading due to its failure to provide information on its continued financing for carbon-emitting activities. The ASA ordered Lloyds to display the ad no longer and ensure future ads featuring environmental claims did not mislead by omitting significant information. (to the source)

The International Court of Justice in the Hague wrapped up hearing over 100 countries and organizations requesting stricter framework for establishing climate responsibilities and incorporating environmental laws and human rights in a landmark legal case. (to the source)

The ICJ heard arguments on climate change accountability, with historic emitters arguing treaties are the only mechanism, and developing countries like Africa calling for legal reparations. (to the source)

Montana's Supreme Court upheld a lower court's decision supporting 16 activists who argued a state law banning climate consideration in energy policy was unconstitutional. The ruling found the plaintiffs had a fundamental constitutional right to a clean environment. (to the source)

#human_and_labour_rights

Volkswagen is negotiating with labour unions to restructure the brand without closing factories in Germany, restoring job security agreements until 2030, and implementing cost-cutting measures. (to the source)

A congressional investigation reveals Amazon manipulated workplace injury data to make warehouses appear safer, with higher injury rates than the industry average in non-Amazon warehouses due to dangerous conditions and ignoring safety warnings. (to the source)

Amazon workers threaten to strike due to a deadline of 15 December to negotiate a first contract with the union. Strike threats have spread to Chicago and Atlanta, focusing on pay, safety, and job security. (to the source)

Portugal's Supreme Court ruled that 1,200 TAP cabin crew members on short-term contracts should receive retroactive pay, potentially costing the airline up to EUR 300 million. The ruling applies to flight personnel initially hired in 2020 and 2021. (to the source)

The RSPO strengthened labour rights standards, incorporating HRDD into its principles and criteria. The revised standards address issues like forced labour and land rights violations, promoting accountability and responsibility. (to the source)

Shein's global supply chain efforts to combat forced labor are below industry leaders, raising concerns for investors ahead of its anticipated public listing in London. Ultra-fast fashion business models, like Shein, can cause financial strain on suppliers, exacerbate worker exploitation, and increase reputational and supply chain risks. Investors should be cautious due to Shein's size, speed, and purchasing power. (to the source and to the resource)

The apparel industry has been promoting responsible purchasing practices through the Learning and Implementation Community (LIC), which has shown improvements in brand behavior due to active participation. (to the source)

New research by the BHRRC links fast fashion and luxury brands to widespread labour rights violations globally (28 cases detected in 2024), affecting thousands of garment workers in countries like Indonesia, Portugal, and the Philippines. (to the source)

Cornell University's Global Labour Institute reports a 42% rise in high heat stress days across five major garment production hubs over the past two decades, highlighting the significant health hazards and material risks to workers and production processes. (to the source)

#energy_transition

The European Commission approved a €3 billion German-Dutch scheme to support renewable fuel production, including renewable hydrogen, worldwide. The scheme will help build at least 1.875 GW of electrolysis capacity. The Netherlands and Germany implemented safeguards to ensure the scheme's limited impact on competition and trade within the EU. (to the source)

The ICCT report suggests that major vehicle markets must achieve 100% Battery EV sales by 2035 and heavy-duty vehicles by 2040, causing a surge in battery demand, with global annual demand expected to rise from 808 GWh in 2023 to 7.0 TWh by 2040. (to the source)

The demand for batteries and essential materials is rising due to the need for 100% BEV sales by 2035 and heavy-duty vehicles by 2040 to combat global warming, according to the ICCT report. This shift is driving a sharp rise in demand for batteries and essential materials like nickel, lithium, and cobalt, and demand is expected to grow from 808 GWh in 2023 to 7.0 TWh by 2040, with light-duty vehicle BEV battery demand increasing ninefold by 2050. (to the source)

Energy companies, including National Grid, SSE, and ScottishPower, submitted plans for a five-year rewire of Great Britain's electricity infrastructure, aiming to shift from fossil fuels to clean electricity. The proposals must be approved by Ofgem. (to the source)

Japan aims to increase renewable energy to 50% of its electricity mix by 2040, with nuclear power accounting for 20%. The revised energy policy aims to reduce thermal power usage and meet rising power demand while considering a 12-22% increase in electricity demand from 2023 levels. (to the source)

Nissan, facing a crisis, announced 9,000 job losses and reduced production capacity. The company is now considering a full-blown merger with Honda, potentially viewed as a takeover due to Honda's worth four times that of Nissan. This move could consolidate the EV production market. (to the source)

#decarbonisation

The UK and Norway signed a new partnership on renewable energy and carbon capture, with plans to cooperate on cross-border CO2 transport and storage. The deal aligns with the UK's ambition to become a world leader in carbon capture and storage. (to the source)

The Frontier coalition, including Google, Stripe, H&M, and Shopify, committed $80 million to innovative carbon removal technologies, supporting startups CO280 and CREW. The coalition aims to purchase over $1 billion of carbon removal between 2022 and 2030, aiming to achieve the 1.5°C temperature limit. (to the source)

The worldwide approval of Verra's VM0047 methodology strengthens confidence in nature-based carbon removal initiatives, encouraging investment in high-integrity projects. The approval signaling the quality and impact of investments is now available. (to the source)

The Negative Emissions Platform and 43 industry leaders have written to EU Commission president Ursula von der Leyen, urging carbon removal inclusion in the EU Clean Industrial Deal. The letter emphasizes the significance of CO2 removal for achieving net-zero targets. (to the source)

MTR Carbon Capture completed its world's largest carbon capture facility at the Wyoming Integrated Test Center, capturing 55,000 tonnes of CO2 annually. The facility, funded by the Department of Energy, showcases collaboration between private industry and government. (to the source)

A pair of experts raised concerns over three REDD methodologies to The Integrity Council, highlighting the need for trust in the carbon credit market, despite the approval of these methodologies by organizations like Bezos Earth Fund and Google.org. (to the source)

The petroleum industry must deploy carbon capture and storage (CCS) infrastructure by the end of the decade, according to the International Association of Oil & Gas Producers Europe. The EU should establish a 'European CCS Bank' for public support, despite the economic viability of CCS technology. (to the source)

Fortera, a US-based low-carbon green cement manufacturer, partnered with Sumitomo Corporation to introduce its ReCarb® technology to Asia. The technology transforms industrial CO2 into ReAct® green cement, reducing carbon emissions by up to 70%. The technology will initially target Japan and expand to other Asian countries. (to the source)

BCG purchased 50,250 tonnes of certified CO2 removals (CDRs) through ClimeFi, to neutralize 100% of emissions by 2030 and foster market innovation in cutting-edge carbon removal technologies. (to the source)

#waste_pollution

Under Armour, Hohenstein, and PPT Group collaborated to create 'DIN SPEC 19292', a standardized test method for determining microfibre release from textiles under simulated washing conditions that will help apparel and textile companies in better product development. (to the source)

The OECD published a research paper advocating for the swift adoption of extended producer responsibility (EPR) policies to integrate circular economy principles in the garment manufacturing sector, despite most national governments not yet implementing such schemes. (to the source)

#outdoor

Consumer brands like Recreation Equipment, Allbirds, and Kleen Kanteen are launching climate transition funds under the Climate Label program, which requires companies to pay $15 per ton of unabated emissions and spend at least 10% on value chain abatement by 2030. (to the source)

Deuter, a German outdoor brand, donated €5K to Patron, a charity dedicated to promoting nature conservation. (to the source)

Rab and Boulder UK are partnering to increase women's participation in climbing events, aiming to inspire, connect, and boost confidence among climbers of all levels. (to the source)

#apparel

A study in Cleaner and Responsible Consumption reveals garment durability cannot be predicted by the retail price, challenging assumptions about the cost-quality relationship. (to the source)

Eight nations, Cambodia, Costa Rica, Mongolia, Ecuador, Peru, India, Pakistan, and Trinidad and Tobago, launched a six-year project to transform fashion supply chains for sustainability, focusing on regenerative design, renewable materials, production efficiency, and responsible consumption. (to the source)

Swiss watchdog Public Eye recommends a radical overhaul of the fashion industry to create a sustainable, just, and planetary-friendly industry by 2030. (to the source and resource)

#consumer_goods 

Brown-Forman Corporation, renowned for premium spirits like Jack Daniel's and Woodford Reserve, engaged 100% of its direct farmers in regenerative agricultural practices, achieving its first sustainability goal ahead of schedule. (to the source)

Danone, Mars, and Pizza Hut are to increase their efforts to reduce dairy supply chain emissions by 2025, including detailed disclosures about methane and investments in farmers' soil health. Mars is investing $47 million in new procurement policies, while Pizza Hut is already buying 60% of its milk from a farmer cooperative on their way to decarbonize. (to the source)

#circularity

ZDHC released guidelines for sustainable recycled polyester production, focusing on responsible sourcing and handling of materials and chemicals, and requiring recycling facilities to report mandatory requirements. (to the source are resource)

The U.S. Government Accountability Office (GAO) released a report highlighting the rise of textile waste in the U.S. and the need for coordinated federal action. The report suggests the EPA and other federal entities should work together to reduce waste and promote recycling, while also highlighting the environmental impact of textile waste. (to the source)

#climate_change

The University of Columbia's study reveals global heat wave hotspots are emerging, causing deaths, crop damage, and wildfires. These extremes are occurring in China, Japan, Korea, Australia, and northern regions. Rising temperatures contribute to more heat waves, with Europe and Russia disrupting the jet stream. (to the source)

Scientists from the University of Essex are developing potatoes that can withstand heatwaves, potentially increasing yields by up to 30%. Field trials in Illinois showed it is possible, but multi-location trials are needed to confirm the findings. (to the source)

The IPBES report reveals that governments are underestimating or ignoring the links between five key areas: biodiversity, water, food, health, and climate change. This "siloed" approach has unintended consequences, such as damaging biodiversity and polluting rivers. The report identifies over 70 solutions to tackle the problems holistically, many of which are low-cost. (to the source)

A23a, the world's largest and oldest iceberg, broke free from its position north of the South Orkney Islands and is drifting towards warmer waters in the Southern Ocean, following the Antarctic circumpolar current. (to the source)

The Environment Agency warns that by 2050, around eight million properties in England, or one in four, could face flooding due to climate change, with London being the most affected region. (to the source)

Extreme surface air temperatures in Inner East Asia, especially in southern regions, are escalating due to diabatic heating and soil drying, requiring urgent management strategies and drought mitigation measures. (to the source)

Indonesia's Jayawijaya Mountains' tropical glaciers, the "eternal snow," could disappear within two years due to climate change, with thickness shrinking to four meters and predicted to disappear before 2026. (to the source)

What news caught your eye this week? What news surprised you? Share your thoughts and let's discuss! 👇