What's Happening in Sustainability? (Week Recap 30.05 - 05.06) 🌎

This week’s read time: 7 minutes

Welcome to this edition of Green Digest, where you will get updated about everything happening in the sustainability & ESG space in less than 10 minutes 🌎We go through tons of articles and data from the most reliable sources, filter & simplify them and serve them to you in bite-sized chunks every week. 🍀

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The week’s most important news:

⛔️ Wealthy countries are reporting billions of dollars in climate finance to the United Nations, but some of the money is going to questionable projects. Some countries count projects that never happened toward climate finance goals, and others fund projects that increase emissions rather than reduce them. Japan has lent at least $9 billion for projects that will continue reliance on fossil fuels, including a new 1,200-megawatt coal-fired power plant in Bangladesh. The lack of a clear definition of what qualifies as climate finance has led to criticism that funding is going to projects primarily focused on economic expansion rather than efforts that truly help the climate.

🇪🇺 The European Parliament has voted in favor of new rules requiring companies with over 500 employees and more than €150 million in revenue to identify and address the impact of their activities and value chains on human rights and the environment, as well as to adopt and implement climate transition plans. The new rules also apply to non-EU companies with revenues earned in the EU above the thresholds. The rules include sanctions and supervisory mechanisms for companies that fail to comply, which could include having the company’s goods taken off the market, the imposition of fines as high as 5% of the company’s global revenues, or bans from public procurement in the EU.

The European Commission is also set to ease EU’s sustainability disclosure rules to give companies more room to decide what should be reported, though safeguards should ensure this makes little difference in practice. The corporate sustainability reporting directive (CSRD) will force 50,000 listed companies to make environmental, social and governance (ESG) disclosures in annual reports for 2024 onwards. The European Financial Reporting Advisory Group (EFRAG) has drafted detailed rules, but the European Commission is due to ease them amid pushback from some EU lawmakers worried about mounting red tape from the bloc's "green deal" reforms.

🌎 Non-profit platform CDP has launched a campaign to encourage more than 1,600 high-emitting companies to disclose environmental data. The companies, which emit an estimated 4,200 megatonnes of CO2 equivalent annually, include repeat non-disclosers such as Exxon Mobil, Glencore and Caterpillar. CDP has standardized data to allow investors and others to compare corporate performance in areas like climate change, water and deforestation, and 288 financial institutions with around $29tn in assets will write to the companies to urge them to disclose the data.

⛔️ An investigation by the Bureau of Investigative Journalism, the Guardian, Repórter Brasil, and Forbidden Stories has found that more than 800 million trees were cut down in the Amazon rainforest in just six years to feed the world's appetite for Brazilian beef. The investigation shows systematic and vast forest loss linked to cattle farming, with 1.7 million hectares of the Amazon destroyed near meat plants exporting beef around the world. The beef industry in Brazil has consistently pledged to avoid farms linked to deforestation. However, the data suggests otherwise, and Nestlé and the German meat company Tönnies were among those to have apparently bought meat from the plants featured in the study.

💡 More interesting news:

• Mining companies are struggling to hire young workers due to a perception of being in a "dirty" industry, as well as concerns over worker exploitation and environmental harm. The skills shortage is threatening to slow the shift to a green economy, as mining companies are viewed as a critical part of the supply chain for producing green energy. Most mining companies in the US, Australia, and Europe say their expansion and growth plans could come under pressure if current hiring trends continue, especially for high-skilled roles such as engineers, exploration geologists, and data analysts. 👀

• Chemours, DuPont, and Corteva have reached an agreement in principle to settle PFAS-related claims for $1.19 billion. The three chemical companies are facing thousands of lawsuits in the U.S. over their alleged role in polluting the environment with perfluoroalkyl and polyfluoroalkyl substances (PFAS). The settlement does not cover personal injury claims against the companies brought by individuals exposed to PFAS, or claims involving pollution at water systems owned by states or the U.S. government or at some smaller water suppliers. ✅

• Exxon Mobil and Chevron shareholders have rejected climate-related proposals at their annual meetings, dismissing more than a dozen climate-related proposals. Despite protests at meetings for Shell, BP, and TotalEnergies, Exxon and Chevron held their meetings online, avoiding similar protests. Proposals designed to strengthen oil and gas firms' contributions to tackling climate change had falling support overall. Exxon is the only one of the five Western oil majors with no 2030 target for reducing customers' carbon emissions from its products. ⛔️

• The UN Committee on the Elimination of Discrimination against Women has recommended that China adopt statutory quotas and a gender parity system to increase the number of women in government bureaus, including the judiciary and foreign service. The committee expressed concern about the absence of women in China's top leadership and urged China to repeal the disproportionate restrictions on NGO registration and ensure that women human rights defenders are not subject to intimidation, harassment, and reprisals for their work. 🧐

• Dubai's Roads and Transport Authority (RTA) has launched its Zero-Emissions Public Transportation in Dubai 2050 strategy, aiming to transition its operations to net zero by 2050, with targets including decarbonizing all taxis, limousines, and public buses, designing buildings with near-zero energy consumption, and eliminating municipal waste by sending zero waste to landfills. The strategy outlines ten initiatives and aims to reduce 10 million tonnes of CO2 emissions, saving AED 3.3 billion (900 million). ✅

🧐 What are companies doing?

• Boeing has signed a pre-purchase agreement with cleantech startup Equatic for over 60,000 tonnes of CO2 removal using Equatic's ocean-based direct air capture technology and over 2,000 tonnes of carbon-negative hydrogen. Equatic's process uses electrolysis to amplify the natural process through which oceans draw down and permanently sequester CO2 from the atmosphere while producing carbon-negative hydrogen to generate clean energy. The process co-produces hydrogen gas, which can be used to power the process or sold as a carbon-negative fuel source for applications such as sustainable aviation fuel. 🛩️

• Meanwhile, Delta Air Lines is facing a class action lawsuit over claims that it misrepresented its environmental impact by presenting itself as "carbon neutral." The lawsuit argues that Delta's reliance on participation in the voluntary carbon market to offset its emissions makes its carbon neutrality claim false. Delta has committed to carbon neutrality and transitioning away from carbon offsets towards decarbonization of its operations, focusing on investing in sustainable aviation fuel, renewing its fleet for more fuel-efficient aircraft, and implementing operational efficiencies. 👀

• Plug Power plans to develop three green hydrogen production plants in Finland, producing 850 tonnes per day of green hydrogen, or 2.2 gigawatts of electrolyzer capacity, by the end of the decade. The green hydrogen produced will support the production of ammonia and green direct reduced iron, reduce dependence on fossil fuels, and materially support the decarbonization of Europe. The projects are expected to represent some of the largest investments in the European market and will create around 1,000 direct jobs and over 3,000 indirect jobs. 🟢

• Walmart is shifting nearly all plastic mailers to recyclable paper bag mailers, which is expected to eliminate over 2,000 tonnes of plastic in the US by the end of the fiscal year. Other initiatives include enabling customers to opt out of single-use plastic bags, consolidating multiple items in online orders into fewer boxes, and transitioning to right-sized packaging technology. Walmart is also using AI to identify if online orders can be fulfilled from stores instead of fulfillment centers, combining multiple orders on single delivery routes, and using electric vans for delivery. ♻️

• Toyota plans to expand its U.S. electric vehicle presence by investing an additional $2.1 billion in its North Carolina battery plant, nearly doubling its initial investment. The facility will produce lithium-ion batteries for Toyota's expanding portfolio of electrified vehicles, with production anticipated to begin in 2025. This announcement follows President Joe Biden's executive order mandating that zero-emissions vehicles make up half of new vehicle sales in the U.S. by 2030 and other major investment announcements in EV and battery capacity by automotive leaders. 🚙

• PepsiCo has opened a €300m ($320m) plant in Poland, which it claims is its greenest factory in Europe. The plant incorporates renewable energy and circular economy measures to reduce water waste and help address global food system challenges. The plant will be climate neutral by 2035 and features low utility consumption, rooftop solar panels, an onsite solar farm, rainwater collection, anaerobic digestor technology to convert potato peelings into low carbon fertilizer, electrification of steam generation, and an electric fleet of cars. The plant will export to over 20 European countries and create 450 new jobs. 🟢

• Accenture has acquired Brazil-based sustainability consultancy Green Domus, which provides customized decarbonization plans based on feasible reduction targets. The acquisition is part of Accenture's series of moves to boost its sustainability and ESG-focused capabilities, including recent acquisitions of Carbon Intelligence, akzente, Avieco, and Greenfish. The acquisition will bring solutions for clients to help embed carbon data and insights into decision-making through deep knowledge of frameworks such as the Science Based Targets initiative (SBTi), voluntary carbon credits, and regulatory schemes such as the EU’s Carbon Border Adjustment Mechanism (CBAM). ✅

• KPMG and CoolPlanet have teamed up to offer end-to-end decarbonization solutions to clients. CoolPlanet's software provides real-time energy and emissions data, while KPMG offers consulting and engineering services to help set, implement and report on sustainability targets. The companies will offer carbon accounting solutions and data analytics to examine, model and predict carbon performance across portfolios of assets, enabling a clearer view of actions to support clients’ decarbonization goals. KPMG has also partnered with Watershed to provide companies with solutions to measure and address carbon emissions. Watershed's software platform allows companies to analyze and measure scopes 1, 2, and 3 emissions, while KPMG's advisory services will use the data to generate decisions and map decarbonization pathways. The partnership aims to help companies pursue real carbon reductions and simplify the complexities of their climate journey. 🟢

• Fujitsu and Microsoft have announced a five-year strategic partnership to develop and deploy cloud solutions focused on sustainability transformation across manufacturing, retail, healthcare, and public sectors. The partnership will use Fujitsu's Uvance business and Microsoft Cloud to help organizations become more sustainable, address societal challenges, and drive business growth. Examples of solutions include visualizing risks associated with environmental change, building supply chains and recovery efforts to respond to natural disasters, and enabling more sustainable and efficient shopping experiences. 🤝

• Grupo Bimbo, a Mexican multinational food company, has completed an $850 million sustainability-linked bond offering, with terms tied to the company's performance on its Scope 3 value chain emissions goals. The offering is the largest corporate sustainability-linked bond issuance in the Mexican market and the largest transaction this year. The company's Scope 3 emissions account for approximately 90% of its carbon footprint, and the goals include reducing emissions by 12.5% by 2025, 17.5% by 2027, and 28% by 2030. ✅

👀 Where is cash flowing?

🏢 Real estate ESG data technology provider Measurabl has raised $93 million in a Series D funding round, with plans to expand its platform, invest in global partnerships, and expand internationally. The San Diego-based company's data management platform enables real estate owners and asset managers to measure, manage, and report ESG data, covering more than 16 billion square feet of real estate across 93 countries. The funding round was led by Energy Impact Partners and Sway Ventures, with participation from investors including Salesforce Ventures and Colliers.

🛩️ CleanJoule, a sustainable aviation fuel (SAF) startup, has raised $50 million to develop technology for producing more cost-effective SAF. Three airlines participated in the funding round and have signed agreements to purchase up to 90 million gallons of SAF. CleanJoule's proprietary process to manufacture SAF offers up to 10% higher energy density than competitors and does not require blending with petroleum jet fuel. The aviation industry sees SAF as a key tool to decarbonize, and demand is expected to rise dramatically over the next few years.

🟢 ESG data management software firm Novisto has raised $20m in a Series B funding round led by Inovia Capital, with participation from Portage, SCOR Ventures, White Star Capital, and Diagram Ventures. The Montreal-based firm's software helps companies manage ESG data collection and reporting, enabling them to manage sustainability risks effectively and drive long-term value creation. The funding will be used to boost product development and market expansion.

🌾 St. Louis-based ag-tech startup Pluton Biosciences raised $16.5M in Series A funding led by Illumina Ventures and RA Capital, with participation from existing investors and new investors. The company plans to use the funds to accelerate the development of its flagship product, the Microbial Cover Crop, through field trials and commercial partnerships. Pluton works to drive agriculture to a carbon-negative outcome by leveraging Micromining and genomic technologies to identify and deploy beneficial microbes and their natural products.

That’s it for this week. Thanks for making it to the end, your attention span is absolutely impressive 💪.

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