archiveMay 2023

Robust Scope 3 reporting tools are essential for achieving industrial sustainability objectives but firms face a range of practical challenges. Large industrial companies may find it challenging to obtain data from lower-tier suppliers that may not track their CO2 emissions. Additionally, there is no standardised methodology for Scope 3 emissions calculations and disclosures, creating difficulty in assessing the activities of a broad set of suppliers, each using different data collection and reporting methods. While some areas of industry are racing ahead with AI and machine learning, others are still using...

Digital product passports will play an increasingly central role in value chain sustainability and the circular economy. Powered by blockchain and AI technology and due to become law across the EU in 2026, DPPs are key to establishing the credibility of strict new supply chain reporting rules but is business and industry ready to embrace the benefits of DPPs? The digital product passport (DPP) is a tool proposed by the European Commission (EC) to create transparency, unlock circularity and share product information across the entire value chain including data on...

Leading business figures have called for reform of company law to give sustainability the same legal standing as profit and growth. Major changes must be made to boardroom rules to enshrine sustainability in company law that currently rewards profit as the sole corporate objective, at the expense of all other considerations. More than 20,000 businesses and the vast majority of UK public polled in a nationwide survey are backing a change to company law that would see the interests of people and the planet sit alongside those of shareholders when making...

The eighth edition of the State of the EU ETS Report details recent changes to the European carbon market. The report comes at a key moment for the EU ETS, as the main elements of its reform have just been adopted by European institutions. In particular, the mechanism’s emission reduction target has been raised (-62% by 2030 compared to 2005) and will now cover shipping emissions from the maritime sector. A separate new ETS will be created to cover emissions from fuels used in commercial buildings and road transport, and a Carbon Border...

America’s Federal Trade Commission (FTC) is set to reveal updates to its ‘Green Guides’ that aim to boost the robustness of eco-claims. The updates are expected to include changes to current disclosure frameworks; a range of new measures and guidance involving sustainability claims; the use of ‘green’ terms like ‘carbon neutral’; issues around carbon offsets; the expansion of enforcement authority and use of the Green Guides in private litigation. The Federal Trade Commission (FTC) Green Guides help companies avoid making environmental marketing claims that are unfair or deceptive under Section...

Around 0.5% of global carbon emissions could be captured while crushing rocks used in construction, new research suggests. The materials and construction industry accounts for 11 per cent of global carbon emissions and more than 50 billion tonnes of rock are crushed worldwide every year. Current crushing processes, standard in construction and mining, do not capture carbon dioxide CO2. The research paper ‘Mechanochemical processing of silicate rocks to trap CO2’, published in Nature Sustainability, says that almost no additional energy would be needed to trap carbon dioxide. 0.5 per cent...

The journey to net zero aviation is getting shorter thanks to a range of innovations aimed at reducing air travel carbon emissions. Major investment is going into new technologies and practical approaches to reduce the environmental impact of air travel with airlines, scientists, engineers and Formula One teams driving developments in sustainable fuel and low carbon technology. Sustainable aviation was on the royal agenda as King Charles, in his first engagement as King, launched a new £58 million net-zero aviation lab at the University of Cambridge, the facility set to become one of...

Around two-thirds of enterprise Net Zero targets lack integrity, according to a study by the New Climate Institute. Highlighting the lack of progress, in February 2023 the Carbon Disclosure Project revealed that of the 18,000 organisations that had disclosed climate transition plans, only 0.4 per cent were credible. In a bid to improve reporting and credibility the Scope 3 Maturity Benchmark has been created by Proxima in collaboration with the Scope 3 Peer Group, a community that includes many of the world’s most recognisable companies who have chosen to work...

The ISSB has set out new global baseline rules for firms to disclose how climate change affects their business. In February 2023 the International Sustainability Standards Board (ISSB) agreed on all the technical content of its initial standards ahead of their expected issuance at the end of Q2 2023. The ISSB has already announced a package of reliefs and guidance to support use of the new standards, enabling companies to scale up their approach to using them over time. The initial IFRS Sustainability Disclosure Standards, S1 and S2, will become...

ESG requires more than environmental action, it also includes action on the societal impacts of business and industry. The ‘S’ in ESG involves a commitment to diversity, equity, inclusion (DEI) and sustainability initiatives with a heightened focus on the employee experience, a positive workplace culture, and socially responsible practices. Los Angeles-based TMT recognises the need to develop programs to harness employee enthusiasm and offer opportunities to keep its teams connected and engaged on its journey to improve inclusivity and environmental awareness. The company prioritises diversity and sustainability as much as...