Sustainability Progress Report #40

👋 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

How will CSRD be impacted by omnibus regulation? Vodafone's global head of sustainability suggests delaying sustainability assurance requirements for CSRD reports. German climate think-tank Theia Finance Labs proposes a biennial approach to reduce sustainability reporting costs by €3-5bn per year. (to the source)

European NGOs and newspapers accused the chemicals industry of a campaign to limit EU restrictions on PFAS, toxic substances that can persist for centuries in the environment. The European Commission denies being influenced by the industry. The investigation reveals lobbying and PR campaigns. (to the source)

The Chemical reaction: Inside the corporate fight against the EU's PFAS restriction reveals a significant corporate lobbying campaign, targeting industry lobbies to protect their profits from regulation. (to the source)

Chemours, a leading American chemicals producer, has been lobbying for a ban on harmful PFAS chemicals in the EU, holding more high-level meetings and doubling its lobby expenditure. (to the source)

#trends

The European Commission found China's unfair discrimination against EU medical device producers in public procurement, leading the EU to consider countermeasures under the new International Procurement Instrument. (to the source)

The European Automobile Manufacturers' Association (ACEA) has renewed its call for relief from fines for failing to meet EU environmental law. The association claims that carmakers have no chance of complying with the current CO2 emissions standards, which could cost billions. (to the source)

Pacific island states increasingly support a global levy on maritime emissions. Shipping-reliant nations like Panama and Liberia recently backed the proposed levy by the EU, UK, Japan, Nigeria, and Kenya. (to the source)

The race for minerals to power renewable technologies is set to intensify in 2025, driven by governments in EU and North America competing to access crucial materials and break China's supply chain. The Democratic Republic of Congo, Chile, Brazil, and the Philippines are already facing conflicts over minerals and mining activities. (to the source)

#reporting

Asia Pacific companies are increasingly integrating sustainability metrics into executive compensation, with energy companies showing the highest prevalence of this practice globally. (to the source)

#litigation_and_negotiation

Czech environmental organisations filed a complaint with the European Commission accusing Czech authorities of failing to enforce EU environmental legislation at the Počerady coal-fired power plant. The plant, the largest emitter of toxic mercury, has been operating without emission limits since August 2024, violating the EU directive on industrial emissions. (to the source)

The Supreme Court will not hear an appeal from oil and gas companies attempting to block lawsuits claiming billions of dollars in climate change damage. The order allows Honolulu's lawsuit to proceed. (to the source)

Perdue Farms and staffing agency settle labour claims involving children in hazardous jobs at Virginia chicken processing facility, including $4 million in restitution and $150,000 civil penalty. (to the source)

Mastercard will pay $26 million and conduct an employment audit to settle allegations of underpaying 7,500 female, Black, and Hispanic employees, following a four former employees' claims. (to the source)

Italian climate researcher Dr. Gianluca Grimalda, who was fired for refusing to fly during a journey to Papua New Guinea, has won monetary compensation from his former employer. (to the source)

#human_and_labour_rights

The South Korean Labour Ministry declared Coupang delivery drivers as non-employees, sparking backlash from labor unions and opposition parties. The inspection revealed that Coupang's drivers do not qualify as workers under the Labour Standards Act. (to the source)

251 Bangladeshi workers, led by activist Andy Hall, are preparing to sue two Japanese companies Panasonic and Sony in Washington DC for exploitation and mistreatment, seeking damages and compensation. (to the source)

The report investigates labour violations in Indonesia by Taiwanese garment manufacturer Tainan Enterprises, Pegatron, and others in the electronics sector. Workers report poor occupational health and safety education and environmental issues that severely impact local communities. (to the source)

Meta's removal of fact-checking and protection on topics of gender and immigration sparked backlash, with critics warning it could worsen hate speech, disinformation, and online harassment, particularly for women, LGBT+, and people of color. (to the source)

#energy_transition

IEA expects 60% of all renewables worldwide till 2030 to come from China. China's dominance in green technology raises concerns for Western democracies, as it leads in renewable energy capacity, potentially driving Western rivals out of business. (to the source)

Climate Advocacy Group's report suggests doubling air passenger numbers by 2050, threatening the aviation industry's emissions reduction efforts. The report suggested measures such as limiting airport infrastructure, limiting corporate travel, and increasing taxation. (to the source)

Aurora Energy Research predicts that Europe's renewable energy capacity will triple by 2050, but this growth will not meet climate goals due to risk factors like negative prices, market saturation, and grid congestion. More energy storage and flexibility to mitigate price cannibalisation and grid congestion is needed, with Greece, Romania, and the UK most at risk. (to the source)

Norway is leading the world in EV adoption, accounting for 9/10 new vehicles sold last year. A Norwegian dealership now sells all passenger vehicles as EV, with 88.9% of new cars sold in 2024 being EVs. This trend is expected to continue in other countries. (to the source)

Germany's likely next chancellor, Friedrich Merz, pledged to restore industrial competitiveness by putting climate policies on the back burner. Merz emphasized the need to phase out coal and nuclear energy, as decommissioning them would jeopardize Germany's industrial location. (to the source)

#decarbonisation

Indonesia is set to enter the international carbon trading market on January 20, following the launch of IDXCarbon, Indonesia's domestic carbon exchange, which already generated nearly $3.4 billion in value. (to the source)

Japan offers subsidies for carbon capture technology and underground storage for industrial and power sectors, aiming for net zero by 2050. The government will cover the price difference between storage and capture costs for 10-15 years. (to the source)

Equinor, a Norwegian energy company, has been accused of claiming a CO2 storage capacity of one million metric tons annually at its Sleipner facility, which was actually 106,000 tons in 2023. (to the source)

Amazon ordered over 200 eActros 600 trucks from Mercedes-Benz Trucks, marking its largest-ever purchase of heavy EVs. The vehicles will join Amazon's existing fleet and contribute to its climate commitment. (to the source)

Siemens' Smart Infrastructure division advocates for alternative energy sources for data centers amid global energy scarcity and AI model growth. While some operators are exploring green energy, others are considering nuclear power or small nuclear reactors. (to the source)

#waste_pollution

Pollution from PFAS substances has become a significant issue, causing significant environmental damage and costing economies billions of dollars in clean-up efforts, despite lobbying campaigns to prevent their ban. Twenty PFAS manufacturing plants, 16 of which are still active, were identified in Europe for the first time in 2023 by the Forever Pollution Project. (to the source)

Thailand has been a major importer of plastic waste from developed nations, with poor handling and burning of waste. Between 2018 and 2021, the country imported more than 1.1 million tonnes of plastic scraps, according to Thai officials. Thailand banned plastic waste imports from January 1, 2025, to combat pollution. (to the source)

A study in Tekstil ve Konfeksiyon reveals that consumer laundry routines, particularly with distressed and fuzzy garments, significantly contribute to microfibre pollution. (to the source)

#outdoor

The outdoor industry faces a problem of inclusivity and diversity, with predominantly white faces present in various activities. Companies often treat these issues as social issues, but they are actually business issues. Businesses with diverse representation are more likely to outperform those with lower representation. (to the source)

Ascend produced nylon 6.6 from used cooking oils, certified by ISCC Plus for sustainable materials and land management. (to the source)

#apparel

New York and California banned clothing containing "forever chemicals" (PFAS). The ban applies to textiles, bedding, upholstery, towels, cosmetics, nonstick cookware, and fire extinguishing foam. Several apparel firms announced goals of eliminating PFAS from their supply chains, but not all have met their targets. (to the source)

OEKO-TEX Association is introducing Organic Cotton certification, expanding Eco Passport, tightening BPA restrictions, excluding "GMO-free" or "organic" cotton claims, and reducing BPA limit from 100 mg/kg to 10mg/kg. (to the source)

The Biden administration added 37 Chinese companies to the US export ban list due to alleged links to forced labour in the Xinjiang region, including textile giant Huafu Fashion and its subsidiaries, which are associated with global brands. (to the source)

Garment workers in 'Shein Village', a Chinese city known for its ties to fast fashion giants, are illegally working 75 hours a week, according to the BBC, following interviews with factory owners and textile suppliers. (to the source)

#consumer_goods 

Unilever is merging its sustainability and external communications departments due to reduced environmental targets. The company will merge the roles of chief sustainability officer and global head of communications and corporate affairs.  (to the source)

McDonald's restructured its social goals, retiring representation goal-setting and ending its MCDEI pledge. The company will focus on integrating inclusion practices into daily operations and renaming its diversity team as the Global Inclusion Team. (to the source)

Climate change is threatening the sustainability of coffee farming, with a study from the Zurich University of Applied Sciences revealing that by 2050, 50% of the global surface area used for coffee farming may no longer be suitable.  (to the source)

#innovation

Swiss researchers developed a 3D-printed fungal battery that can be used to power batteries in remote regions. The battery is biodegradable and digests itself after use. This innovative use of fungi. (to the source)

Custom Box Pro partnered with EcoShell to develop eggshell-derived bio-calcium as a packaging solution. EcoShell's patented GEX bio-calcium technology heats eggshells intensely, eliminating proteins triggering allergic reactions, and repurposing eggshell waste. (to the source)

Northwestern University scientists have discovered a new process that converts triphenylphosphine oxide (TPPO) into a useful energy storage material. This redox flow battery, unlike lithium batteries, uses a chemical reaction to pump energy between electrolytes. (to the source)

Swiss start-up Sun-Ways has been given the green light for a three-year pilot project in Neuchâtel, Switzerland, to roll out solar panels "like carpet" on railway tracks. The removable innovation is crucial for essential maintenance work, as railway tracks need to be cleared periodically. (to the source)

Hotels on Greek islands may fill their swimming pools with seawater this summer due to worsening drought conditions. Under new legislation being debated in parliament, the Greek government plans to clear existing legal hurdles to pump seawater into private pools, allowing for the switch in response to shrinking water reserves on many islands. (to the source)

#circularity

Euroconsumers, a consumer protection NGO, called for common EU standards for refurbished products and their resale framework. The group is calling for a harmonised definition of "refurbished" and clearer information on warranties, repairs, and parts used during refurbishment. (to the source)

#climate_change

A new report warns that the global economy could face a 50% GDP loss between 2070 and 2090 due to climate change impacts such as fires, flooding, droughts, temperature rises, and natural breakdown unless immediate action is taken by political leaders. (to the source)

Los Angeles wildfires could be the costliest natural disaster in US history, with estimated losses from $20 billion to $30 billion, surpassing other recent California and Hawaii disasters. (to the source)

Scientists attribute the deadly fires in LA to climate change, specifically "hydroclimate whiplash," triggered by extreme precipitation and land use patterns. (to the source)

British growers are experiencing early crop arrivals due to mild autumn and winter, causing fewer crops during the "hungry gap" from April to June, exacerbated by European vegetable shortages. (to the source)

Rising temperatures are reducing tropical forests' CO2 absorption, impacting the global water cycle. Researchers conducted an experiment and found that warming reduced photosynthesis across all species, with an average 35% drop in warmed leaves compared to non-warmed controls. (to the source)

#resources

Explore 81 policies for carbon removal on this jurisdiction map by The Carbon Removal Standards Initiative. (to the source)

This little newsletter is moving onto a website platform to have more control over design and categorisation of topics. It will also be changing its form and introducing some interesting reads and podcast episodes for the week. This will be the last publication hosted on Linkedin. If you enjoyed following it, keep an eye on updates.