Signals of Change – October 2024
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A JUST TRANSITION FROM FOSSIL FUELS TO CLEAN SOLUTIONS
First to the UK, where new government data has revealed that renewables accounted for a record 51.6% of the country’s electricity between April and June of this year, marking the third consecutive quarter where renewables provided over half of the country’s power. And this week, the country ended its use of coal to generate electricity as the UK’s last coal power plant shut down.
Accelerating demand for clean energy infrastructure has seen French power equipment company Schneider Electric’s shares rise by 35% this year. It has now surpassed TotalEnergies in market value on France’s stock index, as the oil and gas company saw its value slip 5% in the same time period.
A new corporate coalition unveiled at Climate Week aims to ensure that businesses source 100% carbon-free electricity every hour of the day. The 24/7 Carbon-Free Coalition, convened by the Climate Group, includes major companies like Google, AstraZeneca, and Vodafone UK.
To address some of the key challenges hampering the clean energy transition in Africa, Western philanthropies, including the Rockefeller Foundation and the Global Alliance for People and Planet, pledged $10 million to boost green energy investments in Africa. This funding will accelerate 15 projects in countries including Burkina Faso, the Democratic Republic of Congo, and Nigeria.
In transport news, automaker Jaguar Land Rover (JLR) has confirmed it will invest £500 millionupgrading its Merseyside factory for electric vehicle production.The revamp will reportedly feature 18,000 solar panels, as part of a project aiming to cut carbon emissions by 40,000 tonnes.
Meanwhile in Kenya, Chinese electric vehicle manufacturer BYD has launched three EV models in Kenya through a partnership with local leasing firm LOXEA, supporting the country’s green vehicle transition.
Finally, in industry news, UK government agency Innovate UK has announced a £3.2 million funding boost for seven projects aimed at decarbonizing the concrete industry. The selected initiatives include efforts by Cemcor to convert calcined clay into low-carbon materials, Cocoon Carbon’s work producing novel cement from electric arc furnace steel production, and the development of low-carbon cement substitutes by the Materials Processing Institute.
PROTECTING AND RESTORING NATURE
A new report released at Climate Week reveals at least $1.67 billion has been allocated towards nature-based solutions in Brazil and the Caribbean over the past year, with investors primarily interested in agricultural solutions such as agroforestry. Razan Al Mubarak, President of the International Union for Conservation of Nature, said the report highlights that “investing in nature-based solutions today, not in the future, is feasible and profitable”.
Also at Climate Week, the Biden-Harris administration announced a nearly $92 million investment from President Biden’s Investing in America agenda for 19 partnership projects to restore and protect aquatic ecosystems, alongside an additional $24 million to restore the nation’s lands and water habitats.
In industry news, Global beer giant Carlsberg has set an ambitious target to source 100% of its grains from regenerative farming by 2040. This commitment aims to set a new benchmark for sustainability in the beverage sector while contributing to improved soil health and biodiversity.
Global agtech leader Biome Makers has teamed up with NGO Food4Sustainability to enhance soil health in Portugal. With a focus on improving nutrient cycling and crop resilience, the initiative aims to reduce reliance on synthetic fertilizers and drive impactful soil regeneration.
Meanwhile, Purdue University and Bayer have launched the Coalition for Sustainable and Regenerative Agriculture, aimed at promoting regenerative farming practices to enhance soil health, biodiversity, and ecosystem resilience while increasing global food production.
DECARBONIZING GLOBAL SUPPLY CHAINS
A new report from CDP and HSBC reveals that companies investing in supply chain decarbonization can realize billions of dollars in financial rewards. The analysis estimates that a $94 billion investment in reducing corporate value chain emissions could generate $165 billion in gains through new market opportunities, energy and resource savings and enhanced business resilience
At Climate Week, Mercedes-Benz and Hydro announced the launch of their ‘Corridor Program’ in the Brazilian Amazon. The program aims to enhance sustainability in their aluminum supply chain while empowering local communities along the aluminum supply chain.
In a similar vein, Schneider Electric has partnered with Glencore to enhance the sustainability of its copper supply chain. The collaboration aims to promote the use of high recycled copper content and develop end-of-life take back initiatives to reduce environmental impact and minimize waste in the production process.
Meanwhile, British supermarket giant Asda has announced it is partnering with HSBC UK to offer suppliers preferential finance rates for demonstrating transparency and action on sustainability. The supply chain finance program, set to launch in January 2025, will offer three tiers of preferential rates to suppliers who share their ESG data, set sustainability targets, and demonstrate action towards those goals.
FINANCE: REGULATION AND STANDARDS
During Climate Week, the IFRS Foundation responded to the growing demand from global investors for consistent sustainability reporting by publishing a guide to help companies voluntarily adopt the International Sustainability Standards Board (ISSB) Standards.
The World Bank Group and the IFRS Foundation have strengthened their partnership to promote the adoption of sustainability standards in emerging markets and developing economies. Announced during Climate Week, this initiative includes a roadmap for the World Bank to align its climate and sustainability-related financial disclosures with ISSB standards
To Asia, where both Singapore and Hong Kong are making significant strides in sustainability reporting. Starting in April 2025, Singapore Exchange Regulation will require issuers to disclose Scope 1 and Scope 2 greenhouse gas emissions, in alignment with IFRS Sustainability Disclosure Standards. In parallel, the Hong Kong Institute of Certified Public Accountants has proposed new sustainability and climate-related reporting standards, aiming for full alignment with IFRS and ISSB standards by August 2025.
Finally, the Swedish National Pension Fund AP4 is working to integrate Scope 3 emissions into its investment decisions as part of its commitment to halve emissions of its investments by 2030. By expanding its analysis to include emissions from supply chains and product use AP4 hopes to better capture sustainability risks and tilt the portfolio towards future green leaders.
DEEP DIVE: AFTER NEW YORK, WHAT NEXT? THE URGENT NEED FOR FASTER ACTION TO GO FROM FOSSIL TO CLEAN
Our deep dive analysis gives our reflections on Climate Week NYC, presents our latest call to action for businesses on Nationally Determined Contributions (NDCs), and gives a forward look at this year’s next critical policy advocacy moments.
COMPANIES TAKING ACTION
Over 17,000 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:
- 9,015 companies working to cut their emissions in line with science through SBTi
- 8,464 small and medium-sized enterprises working to cut emissions with the SME Climate Hub
- 526 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
- 434 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
- G20 Environment and Climate Sustainability Ministerial – 3 October
- G20 Energy Transition Ministerial – 4 October
- G20 Joint Meeting of Climate Change and Finance Ministers – 23-25 October
- CBD COP16 Summit – 21 October -1 November
- Verge24 – 29 – 31 October [for 20% off use V24BASCS]
- G20 Summit – 18 –19 November
- COP29 Summit – 11-24 November
CAREERS
- 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