The latest insights from the We Mean Business coalition

Signals of Change – February 2025

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AMBITIOUS AND INVESTIBLE NDCs

The first of the updated nationally determined contributions (NDCs) have been submitted to the UNFCCC, ahead of the original deadline of 10 February. Leading the pack was the UK, which has committed to reduce greenhouse gas emissions by at least 81% by 2035 compared to 1990 levels.

Switzerland has also announced its updated NDC, with a new climate goal to reduce greenhouse gas emissions by 65% by 2035 compared to 1990 levels. This aligns with its Climate and Innovation Act.

Including Switzerland, this brings the total updated NDC announcements to 16 out of 195 countries. However, UN Climate chief Simon Stiell has given countries until September to submit, saying ‘taking a bit more time to ensure these plans are first-rate makes sense’. There is precedent for late submissions, in February 2020, just 48 countries had submitted by the end of that year – but most had caught up by COP26 in 2021.

A JUST TRANSITION FROM FOSSIL FUELS TO CLEAN SOLUTIONS

First to Indonesia, which has secured a $15.3 million grant from France and the European Union to support the Indonesia Energy Transition Partnership (IETF), a five-year technical assistance program aimed at facilitating the country’s energy transition.

Next to Japan, where EDP Renewables APAC has signed a 20-year PPA with Amazon for a 44 MWp solar farm in Fukushima, Japan, set to generate 48 GWh annually and offset 20,500 metric tonnes of carbon by Q3 2025.

Over the U.S., where 96% of new power capacity came from carbon-free sources such as solar, wind and battery storage  in 2024. The fastest growth in capacity came from grid batteries, with California and Texas leading the way.

Meanwhile, BloombergNEF projects renewable energy costs will keep falling in 2025, driven by China’s expanded clean-tech manufacturing. This enables it to produce electricity from major power-generating technologies up to 64% more cheaply than other markets.

Separately, BloombergNEF reports that in 2023, global low-carbon energy investment surpassed fossil fuels for the first time (1.11:1), with bank financing reaching 89%, though a 4:1 ratio is needed this decade to stay on track for 1.5°C.

DEEP DIVE: BRINGING DOWN THE COSTS OF RENEWABLE HYDROGEN FOR INDUSTRY

A closer look at what is needed to advance global production of renewable hydrogen and drive its adoption for critical-to-abate industries such as steel, fertilizers and other chemicals. Written by Santeri Palomäki, Manager, Industry and Built Environment, We Mean Business Coalition and Celine Le Goazigo, Senior Manager, Energy, WBCSD.

Read our long-form analysis

PROTECTING AND RESTORING NATURE

First up, WEF reports that adopting nature-positive strategies in sectors like offshore wind, mining, ports, and automotive could unlock $1.4 trillion in business opportunities.

A new study from the FAIRR investor initiative indicates that nature-based interventions are more effective than technological solutions in reducing livestock farming emissions while also providing biodiversity benefits.

A word on agrivoltaics – systems that combine solar power generation with agriculture…

New research from Western University in Ontario, Canada, and vegetation control management firm Lara Costa, has found that agrivoltaic business models for raising and grazing sheep suggest returns on investment ranging from 16% to 43%.

And it’s not just good for business. A new study published in Applied Energy (via Tech Energy) finds that integrating agrivoltaics with sheep farming supports land health by enabling full grazing, providing shade, retaining soil moisture, and reducing herbicide use.

Agrivoltaics remains a hot topic in Europe too, where UK energy firm Octopus Energy has purchased OX2’s French agrivoltaics division, which includes a 450-MW project pipeline, and plans to invest €1 billion in French clean energy initiatives.

LATEST FROM THE COALITION

• In a letter to the Financial Times, our CEO, María Mendiluce, responded to concerning reports that the European Union is to roll back sustainability regulations as a result of US deregulation.

• Our new report Quality Matters: Transforming ESG data for better decision-making analyzes systemic issues in ESG data quality, consistency and accessibility – and offers solutions.

• Developed with inputs from companies, investors and partners, our new corporate climate policy engagement reporting template will enable companies to reap the benefits of robust advocacy reporting.

• Our Policy Director, Andrew Prag, welcomed the UK’s updated NDC and emphasized the need for sectoral targets for implementation and to drive investment.

• Our Director Net Zero Finance, Jane Thostrup Jagd, joined the Accountancy Europe podcast to share insights on key aspects of CSRD readiness. Watch on YouTube.h

• In a joint piece for WEF, María Mendiluce and John Marshall, Founder and Chief Executive Officer of Potential Energy, emphasize how simplifying climate action messaging can help businesses appeal to more consumers and investors.

FINANCE: REGULATION AND REPORTING

Leading companies operating in Europe including Unilever, Mars and Nestlé have spoken up, asking the EU Commission not to weaken existing reporting standards as part its newly announced Competitiveness Compass.

Elsewhere, in progress towards robust yet efficient reporting the Canadian Sustainability Standards Board has released its Canadian Sustainability Disclosure Standards (CSDSs), aligning with the ISSB’s global frameworks while providing Canadian companies additional time to prepare for comprehensive reporting requirements, including Scope 3 greenhouse gas emissions.

Meanwhile, the UK Sustainability Disclosure Technical Advisory Committee (TAC) has recommended adopting ISSB’s IFRS S1 and S2, with a proposed two-year climate-first relief period for phased implementation, allowing companies additional time for their disclosures.

COMPANIES TAKING ACTION

Over 18,913 companies are taking action through Coalition partner initiatives. See all companies who committed in the past month on the We Mean Business Coalition website. Companies setting their ambition for net zero include:

• 9765 companies working to cut their emissions in line with science through SBTi

• 8960 small and medium-sized enterprises working to cut emissions with the SME Climate Hub

• 541 companies who have now signed the Climate Pledge, to reach net zero by 2040

Meanwhile, companies are driving down emissions through the following demand-side initiatives:

• 130 companies are accelerating the transition to electric vehicles with EV100, and 5 companies are kickstarting the transition to zero-emission medium- and heavy-duty vehicles with EV100+

• 129 companies are committed to improving their energy efficiency through EP100

• 440 companies have committed to 100% renewable energy with RE100

• 39 companies have joined ConcreteZero to create a market for net zero concrete

• 45 companies have committed to SteelZero to create a market for net zero steel

EVENTS

The B Team: Rebalancing Subsidies – The role of Business (webinar) – 12 March

CERA Week – 10 – 14 March

London Climate Action Week – 21 – 29 June

G7 – 15 – 17 June

Climate Week NYC – 21-28 September

COP30 – 10 – 21 November

G20 – 22 – 23 November

CAREERS

• Various posts at ResponsibleSteel
• Various posts at BSR
• Various posts at CDP
• Various posts at Ceres
• Various posts at CLG Europe (CISL)
• Various posts at Climate Group
• Various posts at WBCSD
• Various posts at SBTi