Sustainability Progress Report #37

👋 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

Campaigners are concerned that the European Commission's plans to simplify corporate sustainability rules could weaken worker protection, human rights, and environmental protection, urging CCC president von der Leyen not to backtrack. (to the source)

The EU and Mercosur have signed a 25-year trade deal, aiming to boost agricultural imports from South America in exchange for EU exports. Critics argue it violates democracy and threatens 700 million people. (to the source)

The Net-Zero Asset Owner Alliance is advocating for mandatory regulatory mandates to standardize Scope 3 emissions disclosure, addressing challenges like poor data quality and double-counting risks. (to the source)

The European Commission has set a cap on fossil fuel emissions for road transport and heating buildings at over a billion tonnes annually, similar to the EU emissions trading system (ETS). The cap will be lowered annually to reduce emissions by 42% compared to 2005 levels, aligning with the EU's 2030 climate target. The Commission plans to propose a legal target for emissions reduction by 2040. (to the source)

Wopke Hoekstra, the EU's climate chief, emphasized the need for the EU to adhere to climate rules agreed in the last five years to support struggling industrial sectors, arguing that companies seek predictability and consistency, rather than changing the rules. (to the source)

EU ambassadors agree on revised rules to combat overfishing, improve shared fish stocks' sustainability, and enhance cooperation with non-EU countries. (to the source)

The European Commission is proposing measures to increase farmers' bargaining power in the food supply chain, aiming to ensure fair compensation and prevent forced selling below production costs. The package includes mandatory written contracts, a new mediation mechanism, and a regulation to enforce the Unfair Trading Practices Directive. (to the source)

The European Commission introduced revised Best Available Techniques (BAT) guidelines for smitheries and foundries to reduce environmental impact and human health. The new norms aim to reduce emissions, promote energy efficiency, and encourage decarbonisation, and apply to around 1,000 foundries and 25 smitheries. (to the source)

The EU's revised Ambient Air Quality Directive, effective from 10 December, aims to improve health and achieve zero pollution by 2050. The directive includes stricter standards for twelve air pollutants and will ensure early action for cleaner air. (to the source)

The EU is implementing stricter rules on waste exports to non-OECD countries, banning plastic waste from November 2026, requiring non-hazardous import requests by February 2025, and prohibiting exports to unincluded countries from May 2027. (to the source)

The newly established EUDR Information System enables operators, traders, and representatives to submit due diligence statements under the EUDR, demonstrating products aren't linked to deforestation or forest degradation. Over 2,500 operators and traders have been trained. (to the source)

Partnership for Carbon Accounting Financials is developing a new methodology for reporting "avoided emissions" or Scope 4 emissions, which could be used to quantify avoided emissions from financing the early coal phase-out in Asia. (to the source)

#trends

EY survey shows 90% of investors use ESG data, but trust is lacking, with many believing greenwashing is worsening and that their firms will decrease reliance on ESG factors. Climate change is the second most cited factor affecting investment strategies. (to the source)

Goldman Sachs exits Net-Zero Banking Alliance, 145 bank coalition aiming for global net zero goals by 2050, despite progress and plans to expand targets. (to the source)

The European Commission plans to increase fossil fuel levies to cut carbon emissions, but EU members are divided on the proposal. Hungary's proposal to tax aviation and shipping fuel was criticized, while Italy, Greece, and Cyprus worry about competitiveness. (to the source)

The European Commission faces pressure from the political right and the car industry to ease emissions regulations, as the automotive sector faces fines and a deadline to reduce emissions. (to the source)

Heidrick & Struggles expands its sustainability practice with new partners, focusing on advisory, executive placement, and Venture Capital Practice growth. (to the source)

The increasing demand for minerals and the need to protect ecosystems are driving the introduction of 'no-go' mining zones, aimed at balancing these demands with Indigenous communities' rights. (to the source)

#reporting

Hong Kong government plans to introduce sustainability reporting requirements for companies, starting with compliance-or-explain reporting for listed companies and mandatory for large-cap companies starting in 2026. (to the source)

The Swiss government initiates consultation on new sustainability-related disclosure rules for companies, requiring climate-related reporting by 2025, aligning with international standards, and including additional obligations for financial sector companies. (to the source)

#litigation_and_negotiation

The International Court of Justice (ICJ) is forced to listen to climate victims during hearings in The Hague that will provide an advisory opinion on state obligations. (to the source)

The Philippines and Bangladesh urged the ICJ to recognize climate change as a violation of international law, as the landmark hearings in The Hague continue. Indonesia cautions that international human rights law does not create climate protection obligations. (to the source)

The Cook Islands are exploring deep ocean drilling for cobalt, nickel, and manganese, aiming to reshape the country's 15 volcanic islands, which also provide fish and tourism. Surfers, kayakers, and swimmers protest against infrastructure construction and offshore mining companies, demanding more independent research and increased risk awareness. (to the source)

Climate change is responsible for over ⅓ of weather-related insurance losses over the last 20 years, amounting to $600 billion. Insurers are misunderstanding climate risk, leading to increased losses from extreme rainfall and flooding, according to Professor Ilan Noy. (to the source)

#human_and_labour_rights

A report in Bangladesh's garment industry shows a 3% drop in female workers over the past decade due to increased automation and the erasure of machine operators' roles. (to the source)

Brick kiln workers in India are highly susceptible to global climate impacts, experiencing extreme heat stress, low pay, long shifts, and lack of breaks. The sector is under-regulated, offering seasonal employment to migrants and often involving bonded labor. (to the source)

The Baku climate summit has prompted the establishment of an international carbon market, raising concerns about human rights abuses and potential harm from increased carbon trades. (to the source)

Amnesty International warns that Saudi Arabia's 2034 World Cup bid could lead to migrant workers being exploited and many dying. (to the source)

David Bilchitz, a professor at the University of Johannesburg and the University of Reading, raised concerns about a separate scope clause in a draft treaty aimed at preventing human rights violations by businesses and making due diligence mandatory, affecting both domestic and international companies. He believes that, if we focus on the key issues, there is no need for a separate provision on scope. (to the source)

The deputy chairman of Bosch stated that up to 10,000 jobs in Germany are at risk. (to the source)

The US apparel sector is investigating Nicaragua for alleged labor abuses, urging caution as the region is crucial to its textile and apparel supply chain. (to the source)

Bangladesh announced a 9% yearly wage increase for the ready-made garment sector workforce, following worker protests for improved wages and benefits. (to the source)

Research by the Business & Human Rights Resource Centre links global fashion giants like H&M, Ralph Lauren, ASOS, Mango, Michael Kors, Coach, and Gucci to alleged human rights violations in their supply chains. (to the source)

#energy_transition

Stellantis and CATL are investing €4.1 billion in a large-scale EV battery plant in Spain, aiming to produce cheaper lithium iron phosphate (LFP) batteries, with production expected by 2026. (to the source)

Hacker bypasses solar panel firewalls, potentially causing grid failures. Global rooftop solar system vulnerability increases cyberattacks, with the European Union experiencing over 200 reported attacks last year. (to the source)

Exxon Mobil Corp. is developing a natural gas-fired power plant with carbon capture equipment to provide emission-free electricity to data centers. The project is not a shift away from fossil fuels but will be fully detached from the electricity grid for construction. (to the source)

Germany has withdrawn €350 million from a European Hydrogen Bank program, putting clean-fuel goals further from reach. The funding was allocated to other green projects or returned to the federal budget. (to the source)

The average price of lithium-ion battery packs dropped 20% to $115 per kWh in 2024, driven by overcapacity in cell production, lower metal and component prices, and the shift to cheaper lithium phosphate batteries. (to the source)

Europe must reduce industrial emissions by 90% by 2040 to meet the EU's net-zero target by 2050. Despite potential benefits like increased efficiency and workplace safety, challenges like financial concerns, infrastructure issues, and technological barriers hinder widespread adoption. (to the source)

#decarbonisation

WWF’s report highlights: “The SBTN currently represents the gold standard in target-setting methodology, providing a solid basis for complying with CSRD and related ESRS requirements related to nature target reporting – sometimes going beyond these regulatory expectations.”

WWF France recommends companies set ambitious nature targets using the Science-Based Targets Network (SBTN) methodology. The report assesses the credibility of corporate nature targets in the EU and suggests that SBTN's guidance can help implement nature targets and their reporting requirements under the CSRD. (to the source)

The GCMD and BCG study highlights the significance of shipping in the Asia Pacific region for Carbon Capture, Utilization, and Storage initiatives, predicting 100 million tons of CO2 captured by 2050 will be transported across national borders. (to the source)

SLB Capturi completed the world's first industrial-scale carbon capture plant in Norway, part of Europe's Longship CCS project, aiming to capture 400,000 metric tons of CO₂ annually by 2025. (to the source)

German bank KfW plans to issue €10 billion in green bonds in 2025, part of a €65-70 billion capital market funding strategy, accounting for 15% of the total. (to the source)

Meta Platforms Inc. will acquire green credits from four large U.S. solar energy projects, providing 760 megawatts of electricity, as part of its sustainable energy strategy. (to the source)

Katalist, a registry launched in November, manages environmental attribute certificates for cargo ship emissions reduction. Companies like Ikea and Amazon can financially support ships using low-emissions fuels, using a "book and claim" approach to offset emissions. (to the source)

#waste_pollution

Brazil's ports are filled with 70,000 unsold Chinese EVs, indicating the challenges for automakers. Brazil is crucial for these companies to prove sustainable overseas growth, as it is the world's sixth-biggest auto market. (to the source)

ClientEarth's report reveals that hazardous chemicals, including carcinogens and endocrine disruptors, are still widely used in Europe due to lax enforcement of EU regulations, with inspections being rare, non-compliance rarely sanctioned, and fines almost non-existent. (to the source)

#outdoor

Italian Olimpian warns that skiing in Italy may become exclusive to the wealthy due to the high costs of €20,000 a year for practice. (to the source)

Outdoor retail giant REI faces allegations of labour and human rights violations in its global supply chain, including forced labor, overtime, discrimination, low wages, and retaliation against workers. (to the source)

Samsara Eco, a Canberra-based start-up, introduces nylon 6 to its plastic-eating enzyme library, targeting textiles and automotive industries, with trials set for mid-2025. (to the source)

Puma signed a letter of intent to secure access to large volumes of wood-based renewable fibers from Finnish-based fiber developer Spinnova, a joint-venture company with Brazilian paper and pulp group Suzano, for use in its Sportstyle category garments. (to the source)

Perfect Moment, a French skiwear brand, is partnering with United Repair Centre to provide free garment repair services to European customers, promoting textile waste reduction. (to the source)

#apparel

The Stand.earth Research Group (SRG) found over 100 fashion brands are using raw materials linked to fracked oil and gas in Texas, with only 57 of these brands having explicit policies to phase out virgin polyester. (to the source)

A commercial-scale polyester recycling plant in London is using zero-emission hydrogen power technology, powered by GeoPura, to replace diesel generators until a suitable grid connection is established. (to the source)

Reiss is partnering with SOJO to provide repairs and alterations services at its stores in London. The service includes hem shortening, waist adjustments, zip replacements, and fixing rips. The partnership aligns with Reiss' waste and circularity policy. (to the source)

A YouGov survey by Oxfam shows 27% of British celebrating the holidays plan to buy pre-loved party outfits, with half buying them to treat themselves. Oxfam is encouraging those 73% who plan to buy new pieces to switch to pre-loved clothes to save money and reduce emissions. (to the source)

Eight governments, Cambodia, Costa Rica, Ecuador, India, Mongolia, Pakistan, Peru, and Trinidad and Tobago, launched a $45-million initiative to reshape their fashion and construction supply chains, aiming to reduce emissions and hazardous chemicals. (to the source)

Haelixa and C&A are collaborating to improve the traceability of their organic cotton, using DNA markers to ensure authenticity and reduce sourcing risks. (to the source)

#consumer_goods

A UN report warns that global food production is at risk due to increased salt in the soil, with 1.4bn hectares affected, 10% of global land, and 1bn hectares at risk, attributed to the climate crisis and poor agricultural practices. (to the source)

The Pesticide Action Network discovered that imported food contains 48 pesticide residues not approved for UK use, including cancer-linked chemicals and bee-harmful imidacloprid, compared to 19 in UK-produced food. (to the source)

UK food insecurity is increasing due to climate breakdown and inflation, with vulnerable households being hit hardest. Poorer, younger, and disabled people face food scarcity, lack of balanced diet access, and missed meals, Defra report finds. (to the source)

#innovation

A Chinese sponge made of cotton and squid bone has absorbed 99.9% of microplastics in water samples, providing a potential solution to global microplastic pollution. The filter's production appears scalable, addressing a problem with previous microplastic filtration systems that struggled to be scaled up. (to the source)

Microsoft is implementing new technologies in its data centers to optimize AI workloads and reduce water consumption for cooling. These liquid cooling systems, which recycle water through a closed loop, are expected to save up to 125 million liters per year per data center. (to the source)

IBM and Texas A&M AgriLife presented SWAT VEXA, a free AI virtual assistant, at COP16 enhancing sustainable agriculture by simplifying access to critical soil and water data, referencing over 7,000 peer-reviewed studies. (to the source)

#circularity

The Global Circularity Protocol for Business (GCP) aims to define and measure circularity, enabling businesses like Amazon, Volkswagen, and green groups to communicate their circularity objectively to stakeholders. Launched in 2026, the protocol will help businesses understand their progress, disclosure, policy framework, and science-based targets. (to the source)

Amazon achieved 99% landfill diversion in 2024, aiming for net zero carbon emissions by 2040. The company plans to open a re:Cycle Reverse Logistics hub and source 13% of spare parts from its own inventory. (to the source)

#climate_change

Climate change forces communities to work overnight, causing physical and mental disruptions and long-term health complications. Night-time farm work threatens social routines, and outdoor workers face significant health risks, with 94% facing over 100 days of heat stress by 2050. (to the source)

The remarkable and unusual migration of a humpback whale from the Pacific Ocean to the Indian Ocean, possibly due to climate change, is confusing and surprising to scientists as it doesn’t align with the expected migration pathways. (to the source)

Scientists at Eurac Research in Italy are using an extreme climate simulator to train emergency medicine specialists for dangerous missions, such as cave rescues and climbing cliff faces as rocks crumble more often and avalanches become wetter. (to the source)

Scientists are studying the natural noises produced by icebergs in the Southern and Arctic Oceans, which can be detected thousands of miles away in the Indian Ocean. The study aims to understand iceberg birth and death and how climate change affects these processes. (to the source)

Scientists warn against using solar radiation modification technologies to reduce GHG emissions due to their untested nature and potential negative impacts on ecosystems, rainfall, and food production, as well as the European Commission's call for a global non-use agreement. (to the source)

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